#United States #Palo Alto #Fintech #Cross-Border Payments #Tensec

Tensec's Bold Move in Cross-Border Payments

In an ambitious leap to redefine the cross-border payments landscape, Tensec has successfully raised $12 million in seed funding. This round was primarily led by Costanoa Ventures and supported by other notable investors including Quiet Capital and WillowTree Investments. The fintech startup aims to cater to the colossal $190 trillion cross-border payments market, predominantly targeting global trading companies and their clients.

Founded by a team of experts from institutions like PayPal, Meta, and Goldman Sachs, Tensec's mission is clear: to provide seamless, real-time payment solutions for businesses that have traditionally been sidelined by major financial institutions. With this funding, the vision of empowering Small and Medium Businesses (SMBs) to access cutting-edge financial tools is taking shape.

Addressing the SMB Gap

Helcio Nobre, the CEO and co-founder of Tensec, has emphasized the pivotal role of SMBs in global commerce. These businesses account for nearly half of the world's trade yet often lack access to essential financial services that larger firms enjoy. Tensec aims to flip this model by allowing global trading companies to offer services directly to their partners. This innovation is anticipated to not only accelerate transactions but also make global commerce more affordable and accessible.

The startup leverages AI and real-time payment technologies to facilitate a unique platform that enhances foreign exchange (FX) services and transaction banking capabilities. Currently, Tensec is working with clients who facilitate an impressive $10 billion in trade volume annually, and expects this figure to double with their forthcoming expansion into the APAC and EU markets.

Modernizing the Payment Experience

Tensec's offering is timely as the existing cross-border payments infrastructure relies heavily on outdated SWIFT technology. With projections indicating that global cross-border payments could soar to $250 trillion by 2030, companies need to adapt and innovate. Tensec's platform is designed to fill this innovation gap, which has largely ignored the SMB sector despite their significant contribution to global trade.

Helcio pointed out the antiquated systems used by legacy banks, stating, "Legacy banks built their cross-border infrastructure when fax machines were cutting-edge." Tensec positions itself as a visionary leader in this space by enabling customers engaged in international trade to deliver modern financial services, thereby meeting real market needs.

Simplifying Financial Services

What sets Tensec apart is its user-friendly interface that consolidates diverse financial operations into a unified platform. Key benefits for Tensec customers include:

• - No API or coding required: Users can access services through a simple login without extensive engineering work.
• - Unified tools: FX transactions, payments, and banking services are all available in one platform, eliminating the hassle of managing multiple systems.
• - Swift onboarding: Client verification is streamlined to mere minutes with intelligent KYB/KYC processes.
• - Real-time payment capabilities: Gone are the traditional delays of up to four days.
• - Dynamic revenue management: Real-time exchange rate information replaces fixed rates, optimizing revenue.
• - Comprehensive risk assessment and compliance: Tensec ensures real-time adherence to regulatory updates, enhancing security.

Supporting transactions in over 150 countries and 70 currencies, Tensec is establishing itself as a formidable player in the evolving fintech landscape.

As the logistics sector continues to witness disruption with companies like Flexport making headlines, Tensec is pioneering efforts to merge logistics with innovative fintech solutions. The company's approach roots its offerings in contextual finance rather than just standalone financial apps, aiming to deliver sophisticated financial tools precisely when and where they are needed in global trade.

In conclusion, Tensec’s initiative not only aims to transform the cross-border payment landscape but also strives to empower SMBs to thrive in a competitive global market. With its cutting-edge technology, Tensec signifies a new era in financial services that promises to reshape the foundational dynamics of global trade.

For those interested in learning more about Tensec, further details can be found at tensec.io.