Mexican DollarApp raises $5 million to enable digital banking with dollars

Oluwajuwonlo Afolabi -

DollarApp, a US-founded payment startup with a subsidiary in Mexico, has raised $5 million in its seed funding round led by Kaszek Ventures and Y Combinator, with participation from 50 business angels.

  • The raised funds will be used to expand its employee base of 11, improve its marketing area, and prepare its official launch. It will also launch its virtual payments with Apple Pay and Google Pay, it says.
  • DollarApp enables users to create USDC bank accounts within seconds and save in USDC with up to 3% annual earnings and international purchases via Mastercard, with up to 4% cashback.
  • Its users can send and receive money in the US for about $3 for a flat fee. The payment startup makes its revenues from the fees and balances from its transactions.
  • DollarApp will now launch in Mexico, where it will provide access to the purchase and sale of USD Coin (USDC) for $1. USDC is a stablecoin linked to the dollar which can be exchanged as a cryptocurrency.
  • The core of the fintech launch in Mexico is to allow Latin Americans to manage their finances in USDC, protect their savings in a stable currency, and avoid the high charges involved in making international transfers and card payments.