Sling Money Launches Peer-to-Peer Payments App for US Users
Sling Money, a peer-to-peer payments app utilizing stablecoins and the Solana network, has launched for users with US bank accounts.
Overview
The app aims to provide a global alternative to Venmo by leveraging Solana and Paxos’ USDP stablecoin for instant money transfers at low fees. The launch coincides with a revitalized atmosphere in the crypto industry following Donald Trump's recent presidential election win.
Founding and Development
Founded in 2022 by Mike Hudack, former chief product officer at Monzo, Sling Money was inspired by Hudack's experience sending crypto internationally while investing in a DAO. He identified the potential for a streamlined payment method despite complex KYC protocols.
Global Reach and Efficiency
Sling Money operates in over 75 countries, including the US. By combining stablecoins with Solana’s low transaction fees, Sling Money offers efficient payments, although challenges remain in on- and off-ramping funds. Future plans include integration with RTP and FedNow, faster payment networks from banks and the Federal Reserve.
Funding and Market Position
The company has secured $20 million in seed and Series A funding, led by Union Square Ventures, with additional investments from Ribbit Capital and Slow Ventures. Unlike typical crypto apps, Sling Money is positioned as a general payment solution.
Competitive Strategy
Hudack aims to capture market share from Venmo by focusing on international payments first. He plans to replicate WhatsApp's growth strategy, building a user base for international transactions before promoting domestic use. Sling Money’s bank transfers are reported to be faster than Venmo's, with potential to undercut Venmo's fees for instant withdrawals.
Market Landscape
Despite its large user base, Venmo has struggled with profitability due to high legacy system costs. In contrast, Sling Money offers cheaper and instant transfers through blockchain technology.
“As a society we’ve spent the last ~25 years connecting the world through media,” Hudack stated, emphasizing the technological capability to connect globally in financial terms as well.