$5 Billion Trading Volume
Founded in 2015, Paxful is a global peer-to-peer fintech marketplace startup company that specializes in the buying and selling of Bitcoin through its app. Other cryptocurrencies like Tether and Ethereum are also offered through the app. The business was founded to help millions of unbanked or underbanked people around the world take control of their money.
Unbanked or underbanked refers to people who do not use or do not have access to any traditional financial institutions. Typically these people do not have any insurance, pensions, or other professional money-related services. By offering over 300 payment method types, the fintech business allows customers to transfer cryptocurrency at any time they choose.
Paxful announced in a press release that more than $5 billion have been traded to date through the app created by the startup company. In addition, the announcement revealed the fintech business has also passed more than six million users.
Paxful also has goals of making an impact on disadvantaged communities as well. Paxful hopes to build 100 schools, water facilities, and entrepreneurial incubators in Africa that are completely funded by Bitcoin through its Built with Bitcoin initiative. The company claims on its website that the business is currently building its fourth school. This newest announcement by the startup company is proof it’s one step closer to achieving that goal.
Ray Youssef, CEO and co-founder of Paxful, said in a statement, “...The financial system is failing 99% of the world’s population; it’s disconnected and out of date. This means there’s no way out of income inequality for a lot of people in the world. With cryptocurrencies, we see an alternative: a way to create a financial system based on equality. Hitting the $5 billion volume mark shows us that we are making a difference and we’re just getting started.”
In congruence with the massive trading volume milestone and growth in the user base, the press release noted that so far in 2021, the company has seen a 15% growth on monthly average volume compared to last year. Youssef added that the fintech business is growing across all global markets and is projected to experience a 20%+ increase in volume for the entire year.
The Fintech Industry
Nowadays nearly everything can be completed online, including financial services. Research and Markets estimates that the global fintech market was worth 5.5 trillion in 2019 and is projected to grow at a CAGR of 23.58% from 2020 to 2025.
While larger companies like Stripe, Credit Karma, Robinhood, and Chime control the market, smaller fintech startup companies have placed more focus on helping unbanked or underbanked individuals like Paxful.
In February, Startup Savant reported that Nigerian fintech FairMoney would be expanding operations in India. Additionally, it also reported on fintech and data startup, Mono, which is working to lower the barrier for underbanked and unbanked individuals in Africa so people in the region can gain larger access to financial tools.
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.