Wyre grabs $5.8m for blockchain-powered remittances

Blockchain-based cross boarder payments service Wyre has picked up $5.8m in a Series A round of funding from a combination of Chinese and US investors.

Chinese VC Amphora Capital led the round with regional payment firms China 9fBank and Baofoo.com also participating alongside Digital Currency Group, Draper Associates and Silicon Valley angel investors.

The San Francisco-based startup claims that there is a total monthly volume of $35m in blockchain-powered cross boarder business payments taking place of which Wyre accounts for 95%.

The company says it charges a rate of between 1% to 4.5% and typically completes transfers in less than six hours -compared to the industry stander of 24 to 72 hours.

It says it processes more than $1m in international payments daily and has seen 25% month-on-month growth.

Wyre has been operating in private beta with a group of partners including messaging app WeChat’s payments provider NihaoPay.

The company’s CEO and co-founder Michael Dunworth said, “Current wire services are difficult, expensive and take too long.

“In a generation of instant gratification, we believe that money transfer should be too.”

9fBank’s CFO Sam Lin said, “It is estimated that the demand for cross-border payment from Chinese companies and investors could reach $1.5 trillion within the next five years.

“Wyre is well positioned as a market leader to facilitate those transactions faster and at a lower cost.

“We believe Wyre’s cross-border technology will revolutionize global payment and remittance and have since made a sizable investment into the company.”

Copyright © 2016 FINTECH GLOBAL

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