The project aims to provide lending and financing choices for Latin American small and medium-sized businesses.
Tribal Credit, a crypto-focused enterprise payment platform, has teamed up with Visa to extend credit and financing alternatives for small and medium-sized businesses in Latin America, demonstrating the rising synergies between traditional payment providers and the blockchain industry.
Tribal can now issue corporate credit cards in local denominations and currencies throughout Latin America, including Mexico, Brazil, Colombia, Argentina, Chile, Peru, Panama, Uruguay, and the Dominican Republic, thanks to its collaboration with Visa. The company’s initial focus, according to a Tribal spokeswoman, is on delivering this loan facility to the countries of Colombia, Peru, and Chile.
While the Visa cooperation is focused on offering traditional finance solutions to small businesses, Tribal’s technology also allows firms to accept payments and transfer funds using cryptocurrencies and blockchain technology. Tribal teamed up with Bitso, a Latin American crypto exchange, and the Stellar Development Foundation in December 2021 to launch a new enterprise cross-border payment solution based on Stellar’s USD stablecoin.
Tribal cited El Salvador’s Bitcoin Law as well as Latin America’s rising acceptance of cryptocurrencies as reasons to keep developing blockchain-based payment systems.
— Indira Kempis de I. (@IndiraKempis) February 22, 2022
Visa has also widened its stance on cryptocurrencies, launching a blockchain interoperability project for digital payments. The “Universal Payment Channel” project is investigating blockchain interoperability with the goal of simplifying digital asset transfers between networks. The credit card company introduced a new crypto consultancy service in December 2021, with the goal of assisting merchants and banks in integrating digital assets into their business structures.
In August 2021, Visa bought a CryptoPunk for $150,000, indicating that it is interested in the nonfungible token market. Visa released a white paper in the same month advocating NFTs as a “promising medium for fan engagement.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.