Australian-listed technology minnow DigitalX is hoping a deal with Spanish telecom giant Telefonica will create opportunities for its money transfer app across Latin America.
DigitalX revealed on Tuesday that Telefonica is its partner in an agreement that was first flagged - without the telco being named - to the market in February.
Telefonica will market the AirPocket app to its customers, who have 232 million connected devices, across Latin America and Mexico, offering potential connections to those customers' friends and relatives across North America.
Anyone with a Telefonica mobile account in Argentina, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Nicaragua, Panama, Peru, Uruguay and Mexico will be able to receive funds from someone in the in the US and Canada with AirPocket into their mobile account.
DigitalX is a former bitcoin-based digital payments company, which late last year turned its focus to software development.
The group and the majority of its 16 staff are based in Boston.
DigitalX co-founder and executive chairman Zhenya Tsvetnenko told AAP that AirPocket is offered as a cheaper, more secure and faster alternative to traditional money transfer companies and banks.
The AirPocket transaction uses blockchain technology - which also forms the basis of bitcoin - making it transparent and viewable by anyone.
Mr Tsvetnenko said the Telefonica partnership is the company's first commercial deal for AirPocket, and potentially a big revenue earner.
DigitalX will earn an 11 per cent commission on transfers, which can range between $US2 ($A2.77) and $US70 from Telefonica, Mr Tsvetnenko said on Tuesday.
For Telefonica, Mr Tsvetnenko said the AirPocket deal could lift revenue and allow the company to use the service as a product differentiator to keep customers and lure new ones.
DigitalX has targeted the US because it is one the biggest, if not the biggest, money transfer markets in the world, Mr Tsvetnenko said on Tuesday.
The global remittance market is valued just under $US600 billion, and "very fragmented", despite major players Western Union and MoneyGram having around 40 per cent of the market, Mr Tsvetnenko said.
"There's actually a great opportunity for innovative companies like ours to do something.
"We do plan to undercut our competitors on fees and certainly on security," Mr Tsvetnenko said.
DigitalX shares rose 1.5 cents, or 9.1 per cent, to 18 cents, valuing the company at $18.4 million in a flat Australian market at 1519 AEST.
The AirPocket app will be launched in the US before the end of the month on Apple's App Store and Google Play.
DigitalX's software will also allow an individual and merchant with a smartphone and free cash to create their own business and become a remittance broker, or AirAgent, Mr Tsvetnenko said.
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