Banco Industrial, the largest financial institution in Guatemala, has partnered with crypto infrastructure provider SukuPay to integrate blockchain-powered remittance capabilities into its mobile banking ecosystem. The collaboration centers on embedding SukuPay’s technology into the bank’s Zigi payment app, enabling residents to receive funds from the United States almost instantly and at minimal cost.
As of May 21, the integration has been fully implemented, allowing transfers to be completed for a flat fee of $0.99. The Zigi app facilitates this process without requiring users to possess a cryptocurrency wallet or an International Bank Account Number (IBAN), effectively removing common technical barriers. SukuPay emphasized that this move simplifies the user experience while maintaining the advantages of blockchain-backed speed and efficiency.
Simplifying Blockchain for Everyday Use
According to SukuPay’s leadership, the core philosophy behind the integration is to make blockchain functionality invisible to the end-user. The company’s CEO has indicated that widespread adoption of blockchain technology is only possible if users can benefit from its advantages without needing to understand its underlying mechanisms. The strategy, therefore, focuses on building supportive infrastructure rather than placing the burden of technical knowledge on consumers.
Banco Industrial, which was founded in 1968, operates over 1,600 service points across Guatemala and has established a significant footprint in the local financial landscape. As of 2023, the bank reported assets exceeding 150 million Guatemalan quetzals, roughly equivalent to $20 million USD. In addition to Guatemala, it also maintains operations in El Salvador, Honduras, and Panama, playing a pivotal role in remittance channels within the region.
SukuPay noted that the partnership with Banco Industrial and its integration into the Zigi app marks one of the first implementations of a crypto-native protocol inside a major Latin American retail banking institution.
Addressing High Fees and Delays in Remittances
Remittances form a critical component of the economic ecosystem in Guatemala and the surrounding region. Funds sent by migrant workers to their families represent a lifeline for many households, yet the costs and delays associated with traditional remittance services remain significant. The Inter-American Development Bank estimated that remittance flows to Latin America and the Caribbean would reach approximately $161 billion in 2024. Individual monthly transfers typically range from $131 to $648 and may constitute between 6% and 23% of the sender’s income.
SukuPay’s leadership has expressed concerns over the inefficiencies in current remittance systems. The company pointed out that Guatemala alone receives around $21 billion in remittances annually, yet a notable portion of this amount is lost to high fees and time-consuming processes. For families dependent on small monthly transfers, delays and 6% to 10% transaction fees represent a significant hardship.
In contrast, the use of blockchain—when properly implemented—enables near-instant money transfers with dramatically reduced fees. By embedding the solution directly into apps already familiar to users, such as Zigi, SukuPay aims to offer both accessibility and speed without requiring customers to alter their digital habits or gain new technical knowledge.
Stablecoins as a Driving Force in Regional Adoption
While Guatemala remains behind regional leaders such as Argentina, Brazil, Mexico, Venezuela, and Colombia in terms of cryptocurrency adoption, Latin America as a whole is experiencing rapid growth in this sector. A 2024 study by Chainalysis identified Latin America as the second-fastest growing region globally for crypto use, citing stablecoins as a key factor in facilitating cross-border transactions.
SukuPay has acknowledged that stablecoins play a crucial role in making international money movement more efficient. However, it also noted that users are typically not seeking stablecoins themselves but rather the practical benefits they offer. The organization sees stablecoins simply as an effective means to an end—enabling fast, reliable, and cost-effective remittances.
By seamlessly incorporating blockchain technology into a well-established financial application, Banco Industrial and SukuPay are aiming to redefine how remittances are delivered in Guatemala, ultimately making the process faster, cheaper, and more user-friendly for everyday consumers.
