SatoshiPay is set to keep developing its B2B solution after the Stellar Development Foundation made a strategic investment of $550,000 by way of convertible loan notes into the company.
The news comes after SatoshiPay said that it had been quick to adapt to the coronavirus outbreak by finding ways to reduce costs and to ensure the safety of its staff. It assured the press that its current cash position combined with the Stellar Development Foundation investment meant that it had enough money to survive financially for the foreseeable future.
The cash injection also marked the Stellar Development Foundation’s third investment through its Enterprise Fund.
SatoshiPay’s solution is empowering businesses to do commercial, cross-border payments and its digital wallets. SatoshiPay was one of the first businesses to use Stellar commercially and has, to date, processed €650,000 in payments from over 200,000 accounts. SatoshiPay’s open-source wallet for the Stellar network, Solar, has been downloaded more than 25,000 times in 40 countries.
The funds will be used to primarily help develop and market the SatoshiPay B2B solution. The company is currently testing this product and expects to have a product in closed alpha testing within eight weeks.
It is expecting to launch a beta product sometime in the fourth quarter of 2020, but the startup claimed the initial reaction to the product has been very positive. Further the company estimates that the commercial payments segment, the largest segment of this market and the area that SatoshiPay’s solution will focus on, which allows businesses to make commercial payments across borders, generates €170bn annual transactions fees.
“With a surge in demand for instant B2B payments, and blockchain maturing and enabling a payments revolution, we believe we have a head start through our proven, scalable blockchain business model,” said Meinhard Benn, CEO of SatoshiPay. “Our growth over the years wouldn’t have been possible without Stellar Development Foundation, who has been an essential partner to us in the development of our technology which continues today with this investment.”
Blue Star Capital, the investing company with a focus on esports, payments, technology and its applications within media and gaming, has a 27.7% stake in SatoshiPay. The company’s leadership also welcomed the new capital injection.
“The investment by Stellar Development Foundation is a great endorsement of SatoshiPay and comes at a critical time in the company’s development and secures its funding needs for some time to come,” said Tony Fabrizi, CEO of Blue Star. “The B2B business opportunity is significant and we are looking forward to the launch of the product in the next few months. We continue to believe that SatoshiPay has an exciting future.”
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