By Riley Kaminer
For years, the process of sending money across borders has been a drain on both time and resources, especially for immigrants trying to support their families back home. Yet remittances are critical, with the World Bank estimating global remittances to low- and middle-income countries surpassed around $600 billion in recent years.
Leap Financial is bringing modern AI-powered solutions to an industry often stuck in the past. And now, they’ve got even more wind in its sails thanks to a just-announced $3.5 million seed round led by Coconut Grove’s Fuel Venture Capital and backed by Miami-based Ascendo Venture Capital.
For co-founder and CEO Lionel Carrasco, the problem of inefficiencies in cross-border payments is personal. Immigrants, he explained, often lose substantial portions of their earnings to high fees when sending money to loved ones.
“Leap was founded to help immigrants overcome disparity and change the 100-year-old ways that allow incumbents to take 10% cuts for check cashing services, 5% for simple international money transfers or drain bank accounts with shady fees from hard-working people who barely make a living,” he said in a statement.
Carrasco emphasized Leap’s mission to challenge these outdated practices and introduce an alternative that is both fair and profitable. “We can do better than that and still be able to make profits. Like Jeff Bezos’s famous quote, ‘Your margin is my opportunity,’ we say, ‘Your inefficiency is our opportunity.’”
According to the company, the funding will enable Leap to expand its AI capabilities, attract top talent, and respond to growing demand spurred by strategic partnerships, including one with Mastercard. By integrating with Mastercard’s network, Leap can originate remittances through federal banks and send funds directly to debit cards and mobile wallets. This streamlined approach not only improves efficiency but also strengthens anti-money laundering compliance – essential in the heavily regulated remittance industry.
Fuel Venture Capital’s Managing General Partner, Maggie Vo, said Leap’s combination of technical innovation and financial expertise set it apart from competitors.
“Many companies attempt to tackle remittance and fintech, but they often excel in technology while lacking the necessary financial expertise,” Vo said. “Leap stands out with their team’s deep understanding of remittance, banking infrastructure, and compliance—knowledge that the founders have built over many years in the industry.”
Vo expressed a personal connection to the company’s mission. “As an immigrant myself, Leap’s vision to help immigrants send money back to their loved ones truly resonates with me,” she said. “I understand the unique challenges faced in this space and by immigrants from emerging markets who are trying to assist their families.”
Leap’s technology includes a conversational AI “super-agent” called Lola, designed to enhance user engagement and simplify the process of sending money. This AI-driven approach helps both individuals and financial institutions deploy remittance services more effectively.
The seed funding reflects growing confidence in Leap’s ability to address a critical need for immigrants while providing financial institutions with innovative tools.
READ MORE IN REFRESH MIAMI:
- Through h.way, Leap Financial is building the next generation of tech-enabled banking for Hispanic Americans
- RecargaPay founder shares insights on building a Brazilian fintech giant, and what’s next
- British fintech Floww expands to the U.S. via Miami to transform capital raising for startups
- Why this Canadian fintech leader is making Miami its new home base
- Global fintech Veritran opens North American HQ in Coral Gables
Photo at top of post: Leap Financial co-founders Lionel Carrasco and Marcela Henao.
