Ripio Crypto Loans is a Working Product in Latin America (Argentina, Mexico and Brazil)

Latin America Users To get Cryptocurrency-Powered Loans Thanks to Ripio.

Ripio, the Argentinian startup, has made P2P microloans available to its more than 200,000 users across Argentina, Brazil, and Mexico. After raising 37 million dollars in its ICO sale last year, Ripio becomes one of the crypto ventures that have a working, shipped and tangible financial product. The funds raised by the ICO were used to build its credit network and effectively march individual borrowers and lenders all over the world using smart contracts.

The current full rollout plan of the micro-loan service comes in the heels of a beta trial where over 800 clients in Argentina were given loans. Ripio now says that it has over 3,000 lenders issuing loans anywhere from $150 to $730 through its platform. These lenders are primarily from the Asian continent, and they are helping to fund people all over South America.

About Ripio

Ripio has a long-established history of crypto wallet, exchange, and merchant processing services. It was initially called Bitpagos, and it is a long-standing startup within the crypto sector. It started its credit offering business back in 2016 by lending funds to its Argentine clients, before finally pursuing this ambitious goal for hassle-free P2P lending.

How it Works

Even though the borrowers are receiving their micro-loans via fiat currencies, the new Ripio network is backed by the RCN token. A lender sends the loan using RCN, with a cut going to all parties including credit scorers, co-signers and identity verifiers, before finally Ripio converts it back to fiat currency and then distributing the funds to the specific borrower.

Different from most mobile lending and exchange services, unbanked cryptocurrency users can access Ripio's new credit services. The South American market is known for having diverse and often overwhelmingly complex relationships with the financial industry. For instance, World Bank reports from last year show that up to 54% of adults in Colombia are unbanked, compared to 30% in Brazil.

An internal Ripio survey discovered that 19% of its users did not have credit cards. They used convenience stores to deposit cash and fund their wallets. Nevertheless, with Ripio’s credit network, such people now have an opportunity to create a permanent record of their debt payments, which may help them get other financial services hereafter.

Expansion Plans

Ripio plans on expanding its services to serve the markets across Uruguay, Chile, and Colombia. While Sebastian Serrano, the CEO, was optimistic of this expansion, he understands that each market has unique regulations and characteristics. For instance, the political instability, opaque regulations, and security concerns halted its entry into Venezuela. Nevertheless, through strategic partnerships with banks and e-commerce companies, Ripio is offering new ways for clients to get and spend money, especially for unbanked people.

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