Blockchain payments startup SatoshiPay has raised $550,000 via a convertible loan from the Stellar Development Foundation (SDF).
The loan is contractually bound to convert into equity at SatoshiPay’s next funding round, founder and CEO Meinhard Benn told The Block. SDF lent the money in its native token Stellar Lumen (XLM).
SatoshiPay said the transaction involved 8,204,187 XLMs and took only about five seconds to complete at a total cost of 0.00006 cents in network fees.
With the fresh funding in place, SatoshiPay plans to bring its new product to the market, “an instant money transfer service exclusively for businesses," Benn told The Block.
The business-to-business (B2B) payments solution is being built on the Stellar blockchain and would help firms send and receive money “within 5 seconds,” according to SatoshiPay’s website.
"With a surge in demand for instant B2B payments, and blockchain maturing and enabling a payments revolution, we believe we have a head start through our proven, scalable blockchain business model," said Benn.
Founded in 2014, London and Berlin-based SatoshiPay started as a micropayments platform for publishers. Through the platform, it claims to have processed over €650,000 (~$725,000) from over 200,000 accounts. SatoshiPay also operates a Stellar wallet called Solar.