AstroPay aims to simplify cross-border payments, which often take over 24 hours and can involve costly fees and customer support interactions.
Moreover, AstroPay established a network of merchants that allow payments through AstroPay during the checkout process. When a merchant opts to accept AstroPay, customers can conveniently make payments directly on the merchant’s website or app. AstroPay imposes fees for these business-to-consumer (B2C) transactions. Additionally, the company intends to subsidize its multi-currency wallet product using the revenue from these fees, which means customers can expect favourable exchange rates due to B2C transactions in Latin America.
AstroPay is currently active in approximately 25 countries. Alongside its presence in Latin America, the company is expanding into Europe, as many workers from Latin America relocate there in search of new job opportunities. These individuals may require European banking details (IBAN) to send money back home.
To facilitate this, AstroPay recently obtained an Electronic Money Institution (EMI) licence in Denmark. Following Denmark, the company will soon welcome customers from Spain and Portugal. By the end of 2025, AstroPay plans to extend its services to France, Germany, Italy, and Poland. Additionally, AstroPay has teams in various markets, including Argentina, Brazil, Colombia, Denmark, India, Peru, Spain, the UK, and Uruguay.
In June 2024, FCA placed restrictions on AstroPay, prohibiting the company from offering payment services or accepting new customer funds without prior written consent. It was reported at that time that AstroPay was allegedly indebted to customers for several million dollars by the end of 2022. The FCA's actions mandated that AstroPay properly ring-fence all relevant funds.
AstroPay and the FCA agreed to suspend the company's EMI licence, considering it unnecessary for operations. AstroPay's spokesperson mentioned voluntary restrictions to improve operational capabilities, while the FCA chose not to comment.
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