Revamping International Transactions with Technology

Q: What problems does Higlobe aim to solve and what issues in the freelance market made this solution necessary?

A: Freelancers in Mexico working for US companies will notice some money deducted from their paychecks due to fees and a marked-up exchange rate. Using technology, we can send transfers with far fewer expenses. The user pays for a US account that enables them to receive payments in the same way as if they were a US resident, allowing them to receive their money and send it home with lower fees.

Higlobe moves money from the US to Mexico instantly with no transaction fees. We make money by charging a flat monthly subscription fee of US$4.99 for our most affordable subscription plan. Our users are professionals and exporters as this tool allows them to work as much as they want for US companies while getting almost 100 percent of their money back. There are no hidden fees or additional costs.

Q: How have these challenges evolved as the market becomes more globalized?

A: The COVID-19 pandemic created an unexpected revolution. The traditional foreign exchange market consists of an exporter and the people remitting funds home, sending them from the US to Mexico. The pandemic generated an entirely new, unexpected market by increasing the number of professionals in Mexico or Brazil, for example, working [remotely] for US companies.

COVID-19 and Zoom video calls led to the revolution that allowed working from home from anywhere in the world, creating a new market and a new way for Mexicans to make money. This is now the fastest-growing segment of the export market.

Q: Stablecoins are part of Higlobe’s operations. How do they work, and what is their added value?

A: The traditional financial market is undergoing a disruption, similar to what happened to the music industry when Spotify entered the game. Instead of buying vinyl, Spotify offered music streaming under a subscription model.

People now move money from bank to bank but technology can change that. Using Stablecoins, we can send money from the US and give the user almost the same amount (as they sent). Through this strategy, we are able to move traditional fiat money with tokens. Later, our local partner in Mexico allows the freelancer being paid to exchange their payment for cash, which makes the price of moving money almost zero.

Q: How do you ensure that stablecoin is safe and advantageous?

A: We are the only money transfer service with a US$10,000 guarantee if your money is lost while in Higlobe's possession. And if your money doesn't arrive on time, you get one month free. In the vast majority of cases, the payment will arrive in minutes, though we guarantee that it will arrive in two business days, which is still faster than a bank-based service in most cases. We are also the only ones guaranteeing a competitive exchange rate on the exchange from stablecoins to fiat money. We only work with regulated institutions in the US and with regulated stablecoins that are backed by real assets to ensure we can provide a safe and superior service.

Q: Higlobe has now also arrived in Brazil. What differences have you seen from implementing your solution in both countries?

A: Both Mexico and Brazil have a highly educated, technologically savvy professional class. What made the entrance into Brazil different is that Mexico has a large informal export economy to the US due to its proximity. However, Brazilian exports are a little different because many more freelancers are organized as companies.

Q: Focusing on freelancers, Higlobe has a fixed monthly cost for users. What are the advantages of paying monthly for the subscription?

A: Freelancers can put their accounts on pause and come back but this is like a newspaper subscription: they get a low price when they commit to the long term. The more they commit, the lower the price. Users sometimes want a receiving account; it is similar to a savings account where they can save money and withdraw it when necessary.

Q: The company raised a Series A in February. How has this investment helped to continue developing the project and what else is in the works?

A: The funds have helped us to bring service to market, to hire additional staff and establish internal controls. It also helped us get going in Mexico and will gradually help us in Brazil. Over time, we will look at more Latin American countries but now we are focusing on the two largest markets.

Q: Why should freelancers and other users choose Higlobe instead of managing payments through other platforms?

A: The main reason is that it helps them save thousands of dollars a year. PayPal, for example, charges a 2 percent fee for transactions. For a US$10,000 payment, this fee equals US$200 a month or US$2,400 a year. With Higlobe, the recipient (freelancer) is charged only US$60 a year.

Higlobe is a payment services company that allows companies in the US to transfer money to freelancers,  in Mexico and Brazil with no transaction rates per transfer. It charges a flat monthly subscription fee starting at US$4.99 per month.