Parallax, a promising startup based in the Philippines, is on a mission to revolutionize cross-border payments. With the global remittance market estimated at a staggering $21 trillion, Parallax is introducing a seamless and cost-effective solution to tackle long wait times, high transaction costs, and unfavorable currency exchange rates. The company has recently secured $4.5 million in seed funding, paving the way for its expansion into the lucrative cross-border payment market.
Key Takeaway
Parallax, a Philippines-based startup, has raised $4.5 million in seed funding to transform cross-border payments. By leveraging blockchain technology, the company aims to eliminate friction, reduce transaction costs, and expedite transfers. With its user-friendly approach and commitment to transparency, Parallax is poised to disrupt the cross-border payment market and provide a seamless experience for users worldwide.
A Solution for Remote Workers and Freelancers
Initially targeting the needs of remote workers and freelancers, Parallax’s innovative cross-border payments system leverages blockchain technology. This enables users from over 150 countries to send and receive payments in stablecoin, cryptocurrency, or traditional currencies with near-instant transfers. By addressing the challenges faced by remote workers and freelancers, Parallax aims to eliminate the barriers to adoption and make cross-border payments more accessible and efficient.
Seed Funding from Prominent Investors
Parallax’s seed funding of $4.5 million was led by Dragonfly Capital, a prominent venture capital firm. Circle Ventures, the issuer of the USDC stablecoin, and General Catalyst also participated in the funding round. Several angel investors, including industry veterans and founders of fintech companies, contributed to the funding. This strong financial backing not only validates Parallax’s vision but also provides the resources necessary for the company’s growth and expansion plans.
Making Cross-Border Payments Intuitive
Mika Reyes, the co-founder and CEO of Parallax, has firsthand experience with the challenges of cross-border payments. Having immigrated to the United States from the Philippines, Reyes witnessed the difficulties faced by workers receiving payments from abroad. Parallax aims to make the customer experience more intuitive, even for those unfamiliar with cryptocurrencies. The platform allows users to open virtual accounts in USD and offers the ability to convert funds into local currencies, making it convenient for users worldwide.
Transparency and Excellent Customer Support
Parallax differentiates itself from competitors like PayPal, Payoneer, and Wise through its commitment to transparency and customer support. The company ensures faster transfers and lower transaction fees by utilizing stablecoin and cryptocurrency. Its customer support team is readily available to answer users’ questions promptly and thoroughly, establishing trust and providing peace of mind.
Expanding into Latin America and Africa
With a remarkable 202% average month-over-month growth, Parallax is already attracting organic interest from users in Latin America and Africa, even without active marketing efforts in these regions. This unexpected demand has prompted Parallax to focus on these areas and tailor its services to cater to the needs of users who are paid in USD. The company’s funding will be allocated to hiring and expanding its infrastructure, ensuring that more users can benefit from faster and cheaper cross-border payments.
