The company’s valuation in the deal was not disclosed.
“Zar is tapping into that infrastructure to create a cash for stablecoin exchange in the physical world,” Timinsky told Fortune. “Like Coinbase is an exchange online, Zar is an exchange that exists in the physical world.”
Timinsky said that while Zar is not available to the public yet, nearly 100,000 customers have signed up for a waitlist and about 7,000 vendors have expressed interest in adding its services to their stores. The interest spans 20 countries, he said, including in Pakistan, Bangladesh, Indonesia, Nigeria, Lebanon, and Argentina.
Zar is not initially targeting the U.S. market. Stablecoin use is not as popular in the U.S. because the local currency tends to be more stable and has more robust payment systems than other countries.
It works like this: Customers will walk into a “bodega” in Colombia or “kirana store” in Pakistan and scan a QR code. That QR code will link to the Zar app where the customer can review the vendor’s ratings, check out other nearby exchanges, and enter how much money they would like to exchange for stablecoins. Then, the customer hands over their cash and the stablecoins are deposited into their digital wallet.
Vendors will be able to make money from this service by choosing the exchange rate they will charge customers and adding a margin for themselves to profit, Timinisky said. Additionally, Zar will charge a fee on each transaction which may vary by country.
Timinsky says he plans to launch his service by the end of the summer. The company will use the money raised in this round to expand its team, add office space, and continue building out its technology.
