A significant challenge in the cryptocurrency and blockchain technology world is converting digital assets to fiat currency. There are only a few fast, reasonable options available.
A crypto payment network that is attempting to simplify the exchange process from crypto to fiat, Tempo Money Transfer is creating what it claims is the largest payment network of any licensed global crypto exchange.
Operating on the Stellar DEX as the principal European anchor for Stellar — and through Lightyear.io, a for-profit spinoff dedicated to helping big investors integrate software — Tempo aims to bring ease-of-use to crypto trading by facilitating the process on its online platform and mobile application. What’s Stellar, you ask? Supported by a nonprofit organization, Stellar is one of the more substantial blockchain projects of recent years, delivering interoperability between diverse financial systems and currencies.
So how does Tempo work?
Users can purchase cryptocurrency via Tempo’s mobile app or at one of its 300 agent locations. Because Tempo avoids having to convert tokens to Bitcoin or Ethereum to complete the transaction, fiat owners can avoid Bitcoin ATMs and their substantial cash-out fees.
“Our initial business was money transfer,” Jeffrey Phaneuf, founder, president, and member of the board of directors at Tempo Money Transfer, told me. “Consumers can use our online money transfer platform or mobile application to send money internationally. They can also visit any of our 300 physical agent locations all over Europe and send money over the counter. We’ve recently launched our digital asset currency services, which allow clients to buy various digital assets, such as Stellar (XLM), Bitcoin (BTC), Mobius (MOBI), and our euro-backed stable coin, EURT. They can also cash out their digital assets in any of our agent locations.”
Not only does Tempo allow fiat backers to exchange their crypto for cash immediately, it also offers a debit card that lets users apply their cryptocurrency balances to the purchase of goods and services. Tempo provides blockchain payments both offline and online, and crypto remittances to almost 100 destination countries.
“We will offer a Stellar-backed Visa or MasterCard with an associated bank account,” Phaneuf said. “This will further facilitate a customer’s ability to move from purchasing crypto through Tempo to redeeming or using their crypto funds in their bank or credit card for purchases. This service will initially be offered to EU residents only to solidify Tempo’s relationship with EU-based clients further. Depending on the demand, we may consider launching the debit card in other regions.”
Tempo’s stablecoin is an essential part of the process and helps protect against cryptocurrency volatility.
“The EURT is a stablecoin tied to the euro and may be purchased through the online platform, mobile app, or in person in any Tempo service location,” Phaneuf said. “Like a regular euro transfer, EURT funds may be sent to a beneficiary throughout Tempo’s worldwide network, where it can be held as a hedge against the volatility prevalent in cryptocurrencies, traded for another cryptocurrency, or cashed out one-to-one with euros.”
And the use of blockchain technology offers users additional benefits.
“We have incorporated the blockchain technology to make our transfers faster and more affordable,” Phaneuf said. “Tempo has partnered with payment institutions on the Stellar blockchain today, such as Coins.ph, Flutterwave, SatoshiPay, Bitbond, and more. Our expanding crypto network promises to bring more efficiencies into the remittance payment space by improving payment speed, decreasing working capital, and lowering the need to pre-fund bank accounts. These steps combined promise significant cost savings.”
Some elements of Tempo’s platform are yet to be defined, including the cost of using the network. But Phaneuf promises it won’t burden users with the same high transactions costs other exchanges and platforms do.
“We haven’t defined the costs yet, but they will be minimal for sure,” Phaneuf said. “We have integrated the Stellar blockchain technology to make our remittance services more affordable. Through this integration, we can power 600,000 transactions for .01 USD in fees.”
With a French license, Paris-based Temp is the European-wide anchor for Stellar blockchain payments and has additional offices in Frankfurt, Germany. It currently has over 105,000 cash pickup locations in its network and partners with more than 3,700 banks.