In the evolving landscape of cross-border payments, Mansa, a Dubai-based fintech specializing in stablecoins, aims to streamline liquidity through innovative credit solutions. The startup recently secured $10 million in funding, led by Tether, to facilitate its expansion into emerging markets.
Mansa’s Innovative Approach to Payment Liquidity
Mansa leverages stablecoins to provide instantaneous transaction settlement and fund customer accounts, allowing payment companies to enhance their operational efficiency. By offering flexible liquidity options via a revolving line of credit, Mansa positions itself as a vital contributor to the future of payment processors.
Funding and Expansion Plans
Having raised $10 million in seed funding—comprising both equity and debt—Mansa is set to expand its services into Latin America and Southeast Asia. The initial investor, Tether, contributed $3 million to the equity investment.
The Founders’ Expertise
Mouloukou Sanoh, CEO, is an experienced investor in African fintech, while co-founder Nkiru Uwaje has a robust managerial background in innovation at SWIFT and has worked on blockchain strategy at Dell in the U.K. and Ireland. Their combined expertise is targeted at developing solutions that address liquidity shortages in emerging markets.
The State of Cross-Border Payments
The global market for cross-border payments is projected to escalate to $290.2 trillion annually by 2030, reflecting the increasing need for efficiency in these transactions. However, fees for remittances are currently averaging around 6.5% globally, with emerging markets bearing the brunt of these costs.
Unique Financial Model
Mansa’s model allows for rapid due diligence—completed in less than a month—and relies on real-time transaction data instead of traditional collateral for underwriting loans. This innovative approach enables Mansa to accumulate liquidity through decentralized finance (DeFi) mechanisms, drawing funding from diverse institutional sources, including hedge funds and family offices.
Recent Performance Metrics
Since its launch, Mansa has facilitated over $18 million in financed payments for its clients, boasting a liquidity access of over $200 million. In a span of six months, the transaction volume surged from $1.6 million to $11 million, showing a consistent growth rate of 37.5% per month.
Client Impact
Mansa services a variety of clients—including B2B payment platforms, remittance companies, and stablecoin infrastructure—that have reported notable increases in operational metrics since adoption. Clients have seen a 30% rise in transaction volumes and a 10% boost in revenue.
Partnerships and Compliance Initiatives
Mansa’s collaboration with Tether highlights the importance of on-chain liquidity for seamless payment solutions. Sanoh emphasizes that having the right stablecoin can drastically improve settlement times and liquidity access in emerging markets.
To ensure compliance with regulations, Mansa has strengthened its oversight capabilities by hiring key officials from major financial institutions, including a former leader from HSBC North Asia. Their commitment to adhere to industry protocols is part of a broader strategy to mitigate risks associated with liquidity and transactions.
Future Ambitions
While lending is Mansa’s initial focus, the company aims to evolve into a comprehensive payment solutions provider, offering services such as instant settlement and foreign exchange in a streamlined manner. Sanoh envisions Mansa transforming into a robust platform akin to an on-chain version of Stripe, further empowering payment companies in emerging markets.
