Latitude Aims to Revolutionize Cross-Border Payments with $35 Million Series A Funding
Texas-based global payments infrastructure company Latitude has announced a significant milestone in its journey to simplify cross-border payments. Founded by industry veterans Cyril Mathew, Brian Wrightson, and Vivek Morzaria, the startup has raised $35 million in a Series A round led by Oak HC/FT, a venture and growth equity firm. This latest funding brings the total amount raised by Latitude to $43 million, following its $8 million seed round.
Latitude's mission is to provide businesses with the infrastructure to use stablecoins to send local currency through familiar methods, such as bank accounts and mobile wallets. This innovative approach aims to address the long-standing issue of getting funds to preferred local payment methods, particularly in emerging markets. By plugging into Latitude, neobanks and other businesses can expand their reach across the globe, reducing the complexity and costs associated with cross-border transactions.
Addressing the Limitations of Stablecoins
Stablecoins have made it easier to move money across borders instantaneously, but their adoption has been limited by the need for recipients to convert them into local currency. This has been a significant barrier, particularly for users in emerging markets who prefer to use local payment methods. Latitude's solution aims to bridge this gap by providing a seamless way to convert stablecoins into local currency, making it easier for businesses to expand their reach across the globe.
The idea behind Latitude was born out of Cyril Mathew's experience working at Uber, where he led international payments. During his time in Europe, Mathew had a conversation with an Uber driver who was trying to remit his wages to Morocco. The driver revealed that he had to hand a bag of cash to a middleman, who would take a 20% cut before delivering the money to Morocco. This experience stuck with Mathew, and he realized that there had to be a better way to facilitate cross-border payments.
Latitude's Founding Team and Vision
Cyril Mathew, Brian Wrightson, and Vivek Morzaria, the founding team of Latitude, bring a wealth of experience to the table. Mathew's background in international payments at Uber and his time at Stripe, where he launched stablecoin payouts in 100 countries, have given him a unique understanding of the challenges associated with cross-border payments. Wrightson and Morzaria, who also have a background in the fintech industry, share Mathew's passion for simplifying cross-border payments.
The team's vision is to create a global payments infrastructure that is regulated, secure, and easy to use. By obtaining regulatory licenses in Southeast Asia, Latin America, and Africa, Latitude aims to expand its reach beyond the US and establish itself as a leading player in the cross-border payments space.
What's Next for Latitude?
With the latest funding, Latitude plans to hire in compliance, engineering, legal, and sales, expanding its team to 30 people. The company also intends to maintain its licenses across 45 US markets and pursue direct licensing globally. This will enable Latitude to provide a seamless and secure way for businesses to convert stablecoins into local currency, making it easier for them to expand their reach across the globe.
As Oivind Lorentzen, a partner at Oak HC/FT, noted, "When you talk to these large enterprises, they want to work with players that are regulated in the US because it provides a level of certainty and trust. That's really important when you're moving money." This sentiment highlights the importance of regulation and trust in the cross-border payments space, and Latitude's commitment to obtaining regulatory licenses in key markets will help to establish it as a trusted player in the industry.
Conclusion
Latitude's $35 million Series A funding is a significant milestone in its journey to simplify cross-border payments. By providing businesses with the infrastructure to use stablecoins to send local currency, Latitude aims to address the long-standing issue of getting funds to preferred local payment methods. With its experienced founding team and commitment to regulation and security, Latitude is well-positioned to establish itself as a leading player in the cross-border payments space. As the company continues to expand its reach and hire new talent, it will be interesting to see how it navigates the complex landscape of cross-border payments and establishes itself as a trusted partner for businesses around the world.
