Borderlands: Tribal targets Latin American SMBs using blockchain, crypto

Tribal is targeting Latin American SMEs that use blockchain, crypto

The global cross-border payment market was $ 903 billion in 2021, and the global market for blockchains and cryptocurrencies is expected to reach $ 23 billion by 2028, according to Vantage Market Research.

Fintech companies such as the San Francisco-based Tribal see great potential in challenging established cross-border payment services using blockchain and cryptocurrency.

While cryptocurrencies have been on fire in recent months as their values ​​have fluctuated wildly, the basic blockchain technology on which many cryptocurrencies are based is being adopted more rapidly in emerging markets such as Latin America, the Middle East and Africa, said Mohamed Elkasstawi, chief strategy officer. officer of the Tribal.

“In the Middle East, even if you’re a startup and you raise $ 10 million or $ 20 million, it’s still very difficult to get a bank account for your company,” Elkasstawi told FreightWaves. “It can take up to three years to get a credit card in some countries. We have heard similar stories in Latin America, where some companies pay up to 300% interest on credit. “

Tribal is a cryptocurrency-focused B2B financing and payment platform focused on emerging markets, offering consumer management solutions, multi-currency corporate Visa cards and payroll services for employees and contractors to small and medium-sized businesses. The company currently operates in around 26 countries, including Mexico, Brazil, Colombia, Peru and Chile.

Around 62 million SMEs trade globally each year, with Latin America representing a $ 175 billion market opportunity led by Mexico, according to Tribal.

“There are many opportunities for countries like Mexico and other Latin countries to jump into the new technology by using new financial rails, where it can provide faster and cheaper ways to send money around the world,” said Elkasstawi.

In December, Tribal partnered with the Stellar Development Foundation and the Latin American cryptocurrency exchange Bitso to launch a cross-border B2B payment service between the United States and Mexico using Stellar’s US dollar-based stablecoin for that purpose.

The Stellar Development Foundation is a non-profit organization based in San Francisco that supports the development and growth of Stellar, a blockchain network that connects global financial infrastructure. Bitso is a Mexico-based global cryptocurrency exchange founded in 2014.

Together with services such as business cards and digital consumption management solutions, Tribal launches a few crypto-specific products.

“We are launching a crypto as a cash-back service. You can think of it as a crypto, but for businesses,” said Elkasstawi. “We are also launching a platform to connect crypto borrowers with small and medium-sized businesses.”

Tribal also aims to connect crypto borrowers with borrowers who run successful businesses and have a good credit score, but who cannot access lower cost capital with traditional banks.

“Many traditional banks are consuming [SMBs]so we would like to connect these lenders with these borrowers at much cheaper rates and for a fixed period like one to three years, said Elkasstawi.

Nuvocargo is launching a service aimed at streamlining invoicing and payments

Logistics start-up Nuvocargo has launched a billing platform for carriers with the aim of helping carriers pay faster, save time on billing and reduce complexity when receiving data from multiple communication points.

Anaid Chacón, Nuvocargo’s product manager, said that the company’s customers pointed out that existing invoicing processes in the transport industry were an important point of inefficiency.

“Nuvocargo’s carrier platform keeps track of all invoices and loads details in one place, helping carriers streamline billing,” Chacón said in a press release.

New York-based Nuvocargo also announced that Jonathan Rojas, a former vice president of Transfix, has joined the company as supply manager to lead the operator sales and operations team and complete the rollout of the operator platform.

Nuvocargo was founded in 2019 as a digital logistics platform for cross-border trade between the United States and Mexico. The company offers forwarding services, customs brokerage, cargo insurance and trade financing.

Japanese air conditioning manufacturer plans $ 230 million plant in Mexico

Japan-based Daikin has announced plans to build a $ 230 million production facility in Mexico, according to the Cooling Post.

The 761,000 square meter facility – whose location has not been revealed – is scheduled to be operational by 2024.

The company said the new plant is a response to growing demand for products in North America and Latin America, which include the Daikin, Goodman and Amana brands.

Daikin is a global manufacturer of air conditioners and HVAC products. The company’s North American headquarters are in Houston.

Mexican ports handled 9.8% more loaded containers in the first quarter

During the first five months of the year, ports across Mexico handled 3.3 million loaded 20-foot equivalent units, an increase of 9.8% compared to the same period last year.

Mexican ports handled 1 million TEUs of empty containers from January to May, an increase from year to year of 14.3% compared to 2021, according to data from the Mexican Secretary of the Navy.

Imports from January to May were 1.6 TEU, an increase of 11.2 per cent from the previous year. Exports also totaled 1.6 million TEU, an increase of 10.9% compared to the same period last year.

The port of Manzanillo on the west coast of Mexico handled the most containers between January and May with 1.3 million TEU, followed by the ports Lázaro Cárdenas (853 782 TEU), Veracruz (470 998 TEU), Altamira (334 543 TEU) and Ensen (442174, 442174) TEU).

See: FreightWaves’ operator update for July 1st.

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