On Friday, RedotPay, a Hong Kong-based crypto payment company, announced that it has secured $40 million in a Series A funding round led by global investment organisation Lightspeed, with participation from HSG, Galaxy Ventures, and other investors.
The funding aims to enhance the Hong Kong-based firm platform, improve regulatory compliance, and expand its global footprint.
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Growing demand for crypto payments
RedotPay, which was founded in April 2023, has rapidly positioned itself as a bridge between traditional finance and cryptocurrency, boasting over 3 million registered users.
The platform enables seamless transactions using both digital assets and fiat currencies, offering virtual and physical Visa cards compatible with major payment networks.
“Our vision is to create a truly borderless financial ecosystem that empowers users worldwide,” said Michael Gao, co-founder and CEO of RedotPay. “This funding allows us to scale our technology and ensure a smoother, more secure experience for our users.”
The crypto firm has aggressively expanded its blockchain integrations, recently incorporating Solana and Ethereum’s layer-2 solution Arbitrum to enhance transaction efficiency. The company’s Visa-enabled crypto cards also support ATM cash withdrawals and digital payment services like Apple Pay and Google Pay.
Despite its growth, RedotPay faces regulatory hurdles, particularly cross-border service restrictions. Some users outside of Hong Kong have reported difficulties accessing the platform, noting the challenges of navigating global crypto regulations.
Even with the challenges, investors are increasingly backing companies integrating cryptocurrency into everyday payments. Pinn Lawjindakul, Partner at Lightspeed, expressed confidence in RedotPay’s vision: “RedotPay is reshaping how people interact with digital assets. We believe their seamless crypto-fiat solutions will drive greater financial inclusion.”
Galaxy Ventures General Partner Will Nuelle echoed this sentiment: “Crypto payments are evolving beyond niche adoption. RedotPay’s approach is a game-changer in financial accessibility.”
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Rising crypto adoption in Asia
Asia is witnessing an increase n crypto payment solutions. Singapore-based Crypto.com recently partnered with Triple-A for direct crypto transactions, while Japan explores stablecoin integration to unlock household savings.
Meanwhile, Hong Kong-based competitors like Infini face challenges, including security breaches, underscoring the complexities of the market.
With its latest funding, RedotPay aims to navigate these challenges, refine its services, and drive mass adoption of crypto payments worldwide.