Mansa: The Stablecoin Lending Platform Revolutionizing Cross-Border Payments
Overview
As payment companies increasingly explore stablecoins for cross-border payments and real-time settlement, some startups are tapping into the zeitgeist by providing liquidity via a revolving line of credit in stablecoins. One of them is Dubai-based Mansa, which offers a unique solution for payments companies, mainly in Africa, to settle transactions and fund customer accounts instantly.
Funding and Expansion
Mansa has raised $10 million in seed funding, including both equity and debt, with Tether leading the $3 million equity investment. The funds will support the company’s expansion into Latin America and Southeast Asia, regions where liquidity challenges also limit cross-border transactions. The startup’s co-founders, CEO Mouloukou Sanoh and COO Nkiru Uwaje, bring several years of expertise in finance, payments, and web3.
The Problem with Cross-Border Payments
Cross-border payments are crucial to global commerce, but many payment providers face liquidity shortages, leading to delayed settlements and higher operational costs, especially in emerging markets. Remittance costs average 6.5% globally, disproportionately affecting developing regions. With cross-border payments expected to reach $290.2 trillion annually by 2030, inefficiencies in the current system could cost businesses billions.
Mansa’s Solution
Mansa addresses this by offering fast, flexible embedded pre-funding solutions, completing due diligence in under a month. Unlike traditional lenders, it underwrites loans based on real-time transaction data rather than collateral, sourcing liquidity at scale through decentralized finance (DeFi). Aggregating capital from DeFi platforms, quant funds, family offices, and hedge funds, Mansa has secured $7 million in liquidity from some of these institutions.
Partnership with Tether
Mansa’s partnership with Tether is crucial in providing on-chain liquidity for instant settlements. The founders are bullish on Tether’s USDT due to its broad accessibility, usage flexibility, and market dominance, which continues to expand alongside rising on-chain payment activity, especially in emerging markets.
Regulatory Compliance
Mansa is focused on regulatory adherence, hiring the former head of HSBC North Asia and the chief legal officer of Franklin Templeton to strengthen its regulatory oversight. The fintech is building robust risk frameworks for liquidity and payments, ensuring compliance with AML checks, sanction screening, KYC (Know Your Customer), KYB (Know Your Business), active transaction monitoring, and blockchain analytics tools.
Growth and Milestones
Mansa has disbursed over $18 million in payments financed to its clients, with access to over $200 million in liquidity through its partner network. The fintech claims it has no defaults so far. Its transaction volume has surged since launching six months ago, from $1.6 million last August to $11 million in January, compounding at a monthly growth rate of 37.5%. Mansa expects to reach a $1 billion total payment volume (TPV) run rate this year, up from its current $240 million run rate.
Conclusion
Mansa is poised to revolutionize cross-border payments by providing fast, flexible, and compliant solutions for payments companies. With its unique approach to stablecoin lending, Mansa is well-positioned to become a key player in the future of payments.
FAQs
Q: What is Mansa’s business model?
A: Mansa offers fast, flexible embedded pre-funding solutions for payments companies, completing due diligence in under a month.
Q: How does Mansa source liquidity?
A: Mansa sources liquidity at scale through decentralized finance (DeFi) platforms, quant funds, family offices, and hedge funds.
Q: What is Mansa’s partnership with Tether?
A: Mansa’s partnership with Tether provides on-chain liquidity for instant settlements, making it a key player in the future of payments.
Q: How does Mansa ensure regulatory compliance?
A: Mansa is focused on regulatory adherence, hiring the former head of HSBC North Asia and the chief legal officer of Franklin Templeton to strengthen its regulatory oversight.
