In a significant step that could revolutionize cross-border payments, Sling Money has launched its U.S. and European Virtual Accounts. This innovative approach merges traditional payment methods with tokenization, offering users both accessibility and efficiency.
Combining Traditional Payment Rails with Tokenization
Sling Money’s virtual accounts are designed to facilitate not just peer-to-peer transactions but also broader cross-border payments. Users can now receive payments in their local currency from multiple locations worldwide directly into their Sling Wallet, thanks to these new accounts.
A Global Payment Solution Inspired by Venmo
Similar to Venmo, Sling Money provides a user-friendly platform for routing payments into either a U.S. account and routing number or a European IBAN. This setup ensures that users can manage their finances with ease in both dollars and euros.
Bridging Local Banking Systems with Stablecoins
According to Joel Hugentobler, a Cryptocurrency Analyst at Javelin Strategy & Research, Sling Money has successfully integrated two distinct systems—local banking rails like ACH and stablecoins—into one cohesive application. This move significantly reduces the friction in cross-border payments.
Sling Money was founded three years ago and began operations in the U.S. last November. It is now available in over 75 countries, with plans to expand into using Real-Time Payments (RTP) and FedNow as additional payment rails.
Partnership with Bridge
A key development was Stripe’s acquisition of Bridge, a regulated financial infrastructure provider. Bridge converts incoming payments into stablecoins, such as the Pax Dollar or Euro Coin, before transferring them to users’ Sling Wallets for holding or local currency conversion at a small fee.
Significance of Stablecoins in Cross-Border Payments
The role of stablecoins in cross-border transactions is gaining prominence. The Bank for International Settlements reported that leading stablecoins, including bitcoin and ether, facilitated approximately $600 billion worth of global payments in Q2 2024 alone.
This underscores the viability of stablecoins as a legitimate payment option,” noted Hugentobler. Sling Money’s adoption of regulated crypto infrastructure through Bridge positions it well ahead of its competitors.”
The integration of traditional and blockchain-based technologies highlights a convergence in fintech, potentially reshaping how cross-border payments are conducted.