Industrial Bank Facilitates Blockchain-Powered Cross-Border Payments via SukuPay
In a groundbreaking move, Banco Industrial, the largest financial institution in Guatemala, has partnered with blockchain-based remittance platform SukuPay to integrate cryptocurrency-powered capabilities into its mobile banking ecosystem. The collaboration aims to address high fees and delays in traditional remittance channels, making international money transfers faster, cheaper, and more user-friendly for everyday consumers.
Remittances to Guatemala and the surrounding region are critical for many households, representing a lifeline for some. Yet, a significant portion of these remittances is lost to high fees and time-consuming processes. According to estimates, Guatemala receives around $21 billion in remittances annually, but a substantial part of this sum is lost in fees.
SukuPay recognizes stablecoins as a crucial component in making international money movement more efficient. The company's strategy focuses on making blockchain functionality invisible to the end-user to facilitate widespread adoption. The partnership with Banco Industrial marks one of the first implementations of a crypto-native protocol inside a major Latin American retail banking institution.
The integration has been fully implemented as of May 21, allowing for near-instant and low-cost transfers from the United States. Transfers through the Zigi app, Banco Industrial's mobile banking platform, can be completed for a flat fee of $0.99. The Zigi app does not require users to possess a cryptocurrency wallet or an International Bank Account Number (IBAN).
Banco Industrial maintains operations in El Salvador, Honduras, and Panama, making the partnership's potential impact across the region significant. Latin America is experiencing rapid growth in cryptocurrency adoption, with stablecoins identified as a key factor in facilitating cross-border transactions. By 2024, approximately $161 billion in remittance flows are expected to reach Latin America and the Caribbean.
The use of blockchain can enable near-instant money transfers with dramatically reduced fees. SukuPay's approach to embedding its solution into familiar apps like Zigi without requiring users to alter their digital habits or gain new technical knowledge should contribute to increased adoption.
Individual monthly transfers typically range from $131 to $648 and may constitute between 6% and 23% of the sender's income. The partnership between Banco Industrial and SukuPay is poised to make a meaningful difference in the lives of those who rely on remittances, offering a more affordable and efficient way to send and receive money.
Founded in 1968, Banco Industrial operates over 1,600 service points across Guatemala and has assets exceeding 150 million Guatemalan quetzals (roughly equivalent to $20 million USD). The bank's commitment to innovation and customer-centric solutions aligns well with SukuPay's mission to make blockchain technology accessible and beneficial for everyday users.
The integration simplifies the user experience while maintaining the advantages of blockchain-backed speed and efficiency. This partnership is a significant step towards a more connected and inclusive financial landscape in Latin America.
