Investment Firm Norwest Venture Partners backs Crypto Card Issuer Rain with $24.5 million funding round
In a groundbreaking move, fintech startup Rain has announced a partnership with Visa to launch a Visa card that allows users to make payments using the AVAX token and stablecoins. This innovative collaboration aims to bridge the gap between traditional financial systems and blockchain-based digital assets, making global payments more efficient and accessible.
Spearheading this initiative is Rain's CEO, Farooq Malik, who stated that stablecoins enable the provision of digital dollar services globally. This partnership is part of Rain's strategic plan to expand its offerings and services.
The partnership with Visa will issue Visa-branded debit and credit cards linked directly to stablecoin wallets. This means that cardholders can pay with stablecoins anywhere Visa is accepted, effectively integrating blockchain-based digital assets into the traditional payment network.
Rain's APIs and infrastructure will facilitate real-time settlements, bypassing the need for traditional fiat currency clearing and settlement systems. Transactions made with these cards will settle in stablecoins on the blockchain, providing 24/7 real-time settlements.
This integration leverages Visa’s global acceptance and payment processing network to facilitate faster, more secure, and more efficient cross-border payments using cryptocurrencies. The partnership addresses merchant and corporate treasury needs by simplifying global settlements, reducing currency conversion complexities, and improving operational liquidity.
The recent fundraising of $24.5 million, led by Norwest Venture Partners, will be used to expand Rain's team, develop new technologies, and apply for additional regulatory licenses. The fundraising attracted participation from Galaxy Ventures, Goldcrest, Thayer, and Hard Yaka.
Rain's services cater to companies with global workforces, allowing employees to receive payments in dollars across borders. Corporate customers can utilize Rain's crypto card issuer platform for their card programs upon payment of a subscription fee.
With this partnership, Rain aims to expand customer access to stablecoins, providing digital dollar services globally. The company's goal is to make stablecoins more accessible and practical for everyday transactions, ultimately revolutionizing the way we make payments globally.
[1] Rain Partners with Visa to Launch Visa Card for Stablecoin Payments (Press Release, Rain, 2023) [2] Rain Raises $24.5 Million to Expand Stablecoin Payment Services (TechCrunch, 2023) [3] Rain's Partnership with Visa: A Game Changer for Global Payments (Financial Times, 2023) [4] Rain's New Visa Card: A Step Towards Mainstream Adoption of Stablecoins (CoinDesk, 2023)
- In collaboration with Visa, Rain seeks to broaden customer access to stablecoins by issuing Visa-branded debit and credit cards, enabling global payments using web3 technologies and decentralized autonomous organizations (DAOs).
- The partnership with Visa represents a significant step towards mainstream adoption of stablecoins, as Rain's APIs and infrastructure facilitate secure, efficient, and real-time settlements in web3, revolutionizing traditional finance and technology.
