April 20, 2024
Terra warms up to give PayPal run for its money
[THE INVESTOR] Korean blockchain startup Terra said on Aug. 30 that it has raised a total of US$32 million from global investors, which the company said would help speed up the ongoing development of its blockchain-based payment solutions.
Top-tier cryptocurrency exchanges and fund operators, including Binance Labs, OKEx, Huobi Capital, Polychain Capital, FBG Capital, Hashed and Translink Capital, participated in the latest funding round that would give a fresh impetus to the development project of what Terra calls the next-generation payment system.
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“I believe Terra’s payment system will change the landscape of the e-commerce industry by enabling more secure and faster online transactions with lower fees,” said CEO Shin, adding the beta test of the system will begin in the fourth quarter.
The CEO said the Terra payment solution will be applied to a wide range of segments, including e-commerce, finance and insurance.
In line with the development project, the firm will build a stablecoin, a type of cryptocurrency pegged to a stable asset, such as gold or fiat currencies, to avoid the extreme price fluctuations.
Through Terra's mobile solution, users can do transactions at online e-commerce platforms with the digital coin instead of credit cards or cash and receive benefits in return. Such services are expected to compete directly with the traditional online payment services like PayPal.
Although similar payment solutions are already being developed by many players in the market, the company said it has an upper edge as its partnerships with global e-commerce companies are fast gaining momentum.
Some of its 15 partners are Korean delivery service firm Baedal Minjok, global shopping platform Qoo10 and Southeast Asia’s largest mobile app for used goods Carousell.
The partner companies collectively generate US$25 billion in revenue annually and have 40 million users.
“Different from other stablecoins, Terra has a clear market infiltration strategy and specific target segments, which makes the firm stand out,” said Ella Zhang, CEO of Binance Labs.
By Kim Young-won (wone0102@heraldcorp.com)
