Why Your Money Gets Stuck in Central America and Southeast Asia

A second product

Traidman said Hopnow has added more products since its last update with the hosts, with virtual bank accounts as its second product. The company partnered with licensed providers in different geographies to give customers access to accounts in a way he described as very fast but compliant.

Where the complexity sits

Traidman argued that pairs such as USD, Euro, GBP and MXN already have very tight spreads, and that the open problem is emerging markets. He said payments must be country specific, region specific and vertical specific, a point he says people rarely discuss. He also noted that some Latin American and African countries are acting against capital flight through stablecoin conversions.

Host Zach Fowler said stablecoins are becoming first class citizens in the payments menu rather than standing alone. Traidman described treasury teams parking funds in stablecoins temporarily before moving them where they are needed, and pointed to Circle buying Tazepay, a local payouts provider for Southeast Asia and India.

Capital as a crutch

Traidman said Hopnow has not raised nearly as much as its competitors yet is as tight as tier one desks on pricing and speed. He warned that well-funded rivals may use capital instead of building operational efficiency, which could bite them when that money dries up. Hopnow is instead investing in sales, compliance, tooling, infrastructure and licensing, he said.

What buyers want

Medium sized businesses care about growth, not cost savings, Traidman said. He sees fast-growing fintechs seeking five days or ten days of credit to take on more growth, and expects the next six to twelve months to turn on which products show they produce more revenue.