DolarApp allows users to open a bank account going from peso to dollar dominated stablecoin USD Coin (USDc) and back in seconds. They can also save in USDc, earning 3% annually, and pay with an international Mastercard with up to 4% cash back. In addition, users can send and receive payments in the United States for a flat fee of $3 versus the $3 fee plus 2% charge that other money transfer companies charge. The company makes money from the flat transfer fee and from revenue on the balances.
“DolarApp allows Latin Americans to manage their finances in USDc, protecting their savings in a stable currency and without the expensive banking fees associated to international bank transfers and card payments — all on one single account,” Hernán Kazah, founder and managing partner at Kaszek Ventures, said in a written statement. “At Kaszek we are convinced it will be a massive financial tool to help Latin America advance towards greater financial inclusion.”
DolarApp was founded by three ex-Revolut employees; Zach Garman, Álvaro Correa and Fernando Terrés. They recently raised USD $5M in funding led by Y Combinator and Kaszek Ventures, with the participation of over 50 angel investors. The funds raised will be used to expand the team and prepare for marketing efforts.