# PAGA Case: Circle

Streamlining US-Mexico payments with stablecoin technology


### PAGA Case: Circle

Streamlining US-Mexico payments with stablecoin technology


## Description

Circle partnered with Félix, a Miami-based fintech company enabling cross-border payments from the US to Mexico via a chat-based experience on WhatsApp. By leveraging USDC, a regulated digital currency, Félix reduces the cost of transferring funds, thereby decreasing remittance fees for consumers. The solution cut down time and cost burdens by integrating USDC with WhatsApp, blending blockchain's power with a user-friendly communication platform widely used in Latin America. Emulating the convenience of in-person money agents, an AI-powered chatbot named "Félix" on WhatsApp, offers a familiar and non-intimidating interface. This approach taps into the daily habits of Latin Americans, making transactions as simple as everyday conversations. Customers can send and receive money effortlessly with instant results: payments in US dollars are processed via debit or ACH through a payment processor, converted to USDC via Circle Mint for a near-instant and secure digital transfer, and then sent using the low-cost Stellar blockchain to Bitso in Mexico. Bitso converts the USDC to Mexican pesos, which are then deposited into local bank accounts through SPEI, Mexico’s interbank transfer system. Initially launched to facilitate remittances for migrants, Félix now also enables businesses to receive cross-border payments, allowing consumers to request remittances from family and friends in the U.S., with payments made directly on the platform.


### Territory

Initially covering USA-Mexico corridors and expanding to other countries in LAC like Guatemala and Honduras


### Impact

Lowered transaction fee costs from $4.98 to $2.99, equivalent to a 40% decrease in rates offered to users while increasing profitability, which represents 40% savings on remittances for Félix customers Faster settlement, including nights and weekends, due to the use of USDC over traditional bank transfers Reduced pre-funding requirements due to near-instant settlement of USDC.


### Participants

Circle, Félix


### Year of introduction

2022


## Lessons learned

Cost and Speed Efficiency: Félix significantly reduced high fees and sped up cross-border payments by using USDC, eliminating the need for expensive pre-funding and lengthy SWIFT network transfers, which can take 3 to 5 days. User-Friendly Experience: By introducing an AI-powered chatbot on WhatsApp, Félix created a familiar and non-intimidating interface, replicating the in-person money agent experience and tapping into the daily habits of the Latin American population.


## Public materials

Felix Pago Launches Chat-based Payments Solution with Circle's Technology to Make Remittances to LatAm as Simple as a WhatsApp MessageHabilita Pagos de Remesas en tu App – Félix PagoCircle & Félix | Cross-border payments from the US to Mexico


## Submitter

Mercina Tillemann PerezVP, Circle Impactmercina.tillemann@circle.com

DisclaimerThe information and examples presented herein are provided for informational purposes only and do not represent the official position or views of the World Economic Forum or the IDB Lab. The World Economic Forum and the IDB Lab do not endorse, recommend, or advocate for the implementation of any specific practices, policies, or approaches described. Rather, this content simply showcases examples and perspectives shared by members of our PAGA Community.