Recently, Visa announced its plan to partner with Tala, a fintech startup that caters to emerging economic markets. This partnership is aimed to provide easier user access to underbanked consumers starting with the stablecoin backed by the US Dollar, USDC which is built upon the Ethereum Network and is governed by the Centre Consortium.
What should the crypto community look forward to with this partnership?
The partnership between Visa and Tala also involves Circle, the Stellar Development Foundation that monitors XLM cryptocurrency, and one of the Centre’s founding members. This partnership-cum-integration will benefit both companies while promoting the use of cryptocurrencies.
Tala will add USDC stablecoin’s functionalities to its various services such as digital wallet, cross-border transfer, supporting asset storage, and crypto-fiat exchange that will open a new world of possibilities for the company.
Also, Tala users will gain access to Visa cards linked with the wallet that will allow them to purchase goods using USDC stablecoin directly. With this partnership, Tala will lower the cost-border remittance cost for its customers to ideally 6.51%, told the CEO, Shivani Siroya.
Visa’s entering the Crypto world
Visa is one of the most dominant payment networks around the world, with over 70 million merchants that have shown an interest in the crypto world. Visa’s crypto head, Cuy Sheffield, had some interesting thoughts about the growth of stablecoins such as USDC.
She said, “we’ve been really interested to see how they could have the potential to help consumers in markets where they don’t have great access to financial services,”
Apart from Tala, Visa also recently partnered up with Circle to promote USDC integration with the company’s growing digital network. With Tala, a 7-year-old fintech startup joining the network, Visa will further the USDC integration.
Tala, a Santa-Monica based Fintech Startup
Since its beginning, Tala has provided over $2 billion in credit to its 6 million users in Mexico, Kenya, the Philippines, and India. Clients can avail of microloans ranging from $15 to $500 using the app regardless of their credit score.
In a recent funding round, the company raised over $200 million from different investors such as PayPal Ventures, GGV Capitals, etc. which will help Tala to cater to more customers.
This partnership will help Tala to expand its product suite and service to more emerging economy markets. It will also promote the adoption of cryptocurrency, which is a mutually shared goal with Visa Network.