Global fintech and funding innovation ecosystem

Category Archives: BaaS, Embedded Finance, API

PayPal Invests $5M of PYUSD Stablecoin into Startup ‘Mesh’

Innovation | Release | Jan 30, 2024

Image PayPal PYUSD from website - PayPal Invests $5M of PYUSD Stablecoin into Startup 'Mesh'

Image: PayPal/PYUSD Website

PayPal Ventures invests $5 Million of it's own stablecoin PYUSD into a Plaid-like startup for crypto called Mesh

PayPal used its Ethereum-based stablecoin, PYUSD, for the majority of the investment, totaling $5 million of the $6.5 million investment. This strategic move marks the first time PayPal has used its stablecoin as a funding instrument for an investment since its launch in August 2023. The use of PYUSD, which is backed by U.S. dollars, short-term U.S. Treasuries, and similar cash equivalents, demonstrates PayPal's confidence in the potential and stability of its digital currency.

  • Mesh's platform offers a solution akin to Plaid but for the cryptocurrency space, providing an embedded finance solution that simplifies digital asset transfers and account aggregation.
  • The investment came shortly after Mesh's $22 million Series A funding round, which saw participation from several new investors, including Money Forward, Inc., Galaxy, and Samsung Next.
  • Mesh's technology allows businesses to seamlessly integrate crypto transfers and payments into their platforms, eliminating the need for users to switch between different platforms improving usability and the practical application of cryptocurrencies in everyday financial transactions.

See:  PayPal’s Blockchain Vision As New Financial Rail

Implications

PayPal's investment in Mesh, particularly with the use of its stablecoin, PYUSD, signals a strong belief in the growth potential of Mesh and the broader field of embedded finance and native stablecoins. PayPal Ventures sees Mesh's technology and approach as integral to the future of financial services, where user ownership and portability of assets are key to product innovation.


NCFA Jan 2018 resize - PayPal Invests $5M of PYUSD Stablecoin into Startup 'Mesh'The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Synctera Officially Launches in Canada With Live Platform

Embedded Finance | Dec 18, 2023

Synctera's Canadian Platform is Now Officially Live

Last week on Synctera's blog, they announced that its Canadian platform was officially live.  Back in March 2023, Synctera announced its expansion into Canada to help build and launch fintech  apps and embedded banking products, along with a $15 million investment round led by NAventures, the corporate venture arm of the National Bank of Canada. This investment also saw participation from The Banc Funds, a noted private equity investor, along with sponsor bank partners Veritex Community Bank, Midland States Bank, and Emigrant Bank. This diverse group of investors represents a strong vote of confidence in Synctera's business model and its applicability to the Canadian market.

Synctera's journey began in the United States, a market known for its vast size and dynamic economic environment. The U.S. served as an ideal launchpad for Synctera, providing a robust ecosystem for financial innovation, access to capital, and a mature Fintech infrastructure. This initial phase in the U.S. allowed Synctera to refine its offerings, align with regulatory standards, and establish a strong foothold in the Fintech domain.

See:  Embedded Finance: Banking Meets the Customer

The expansion into Canada represents a calculated move into a market that, while smaller than the U.S., is rapidly gaining recognition for its commitment to technological innovation and a progressive regulatory environment. Canada's unique financial landscape, characterized by a growing appetite for digital banking solutions and a supportive environment for startups, presents an ideal setting for Synctera's next growth phase.

What Synctera Brings to the Canadian Market

Synctera's end-to-end platform is set to revolutionize how Canadian Fintechs, banks, and developers approach financial innovation. Offering services such as bank accounts, card issuance, money movement, and lending solutions, Synctera aims to simplify the complexities of financial services, enabling businesses to focus on innovation and growth.  Their compliance with FINTRAC regulations as a registered Money Service Business in Canada highlights its commitment to operating within the country's regulatory framework, ensuring trust and security for its partners and customers.

FFCON23 Panel:  Beyond Digital Banking and Embedded Finance

Synctera's entry into Canada confirms a growing interest from global players in the Canadian market and is likely to spur further innovation, competition, and collaboration within the sector.

Comparing the US vs. Canadian Fintech Markets in 2023

FactorUnited StatesCanada
Market SizeLarger market with a diverse and extensive customer base.Smaller market size compared to the U.S., but still significant with a focus on innovation.
Financial EcosystemMature financial infrastructure with a well-established FinTech ecosystem.Growing FinTech ecosystem, with increasing opportunities for innovation.
Innovation HubKnown globally as a center for technological and financial innovation.Increasingly recognized for innovation, particularly in technology sectors.
Regulatory EnvironmentComplex but familiar regulatory landscape for U.S.-based companies.Different regulatory environment, with unique challenges and opportunities. FINTRAC registration is a key aspect for financial services.
Access to CapitalRobust venture capital and investment scene, providing ample funding opportunities for startups.Growing investment scene, though smaller in scale compared to the U.S., with increasing interest in tech and FinTech sectors.

Outlook

This expansion, coupled with the substantial financial backing, positions Synctera to play a pivotal role in shaping the future of financial technology in Canada, signaling a new era of innovation and collaboration in the Canadian financial sector.

For Canadian startups and entrepreneurs, Synctera's platform offers a new avenue to bring their financial products to market faster and more efficiently.

See:  VoPay Launches VoPay360 – Embedded Financial Technology

For banks, the partnership opportunities with Synctera could lead to enhanced digital offerings and improved customer experiences.

The National Crowdfunding & Fintech Association of Canada (NCFA Canada) welcomes Synctera's expansion as a positive development for the Canadian Fintech community. As we continue to monitor and support the growth of financial technology in Canada, Synctera's journey will undoubtedly be one to watch.


NCFA Jan 2018 resize - Synctera Officially Launches in Canada With Live PlatformThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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How Permissioned DeFi Will Transform Global Payments

DeFi Payments | Nov 27, 2023

Cross border permissioned defi model fireblocks and BCG analytics - How Permissioned DeFi Will Transform Global Payments

Image from Fireblocks and BCG Analytics

How Permissioned DeFi is revolutionizing cross-border payments with efficient, cost effective, secure and regulatory compliant transactions

The challenges of both traditional and permissionless DeFi for payments:  Traditional cross-border payment systems are often slow, expensive, and lack transparency. Permissionless DeFi, while offering advantages such as near-instant transfers and better traceability, falls short in terms of anti-money laundering (AML) and Know Your Customer (KYC) functions, making it vulnerable to fraud and erroneous payments. These shortcomings have hindered its widespread adoption by financial institutions.

See:  JPMorgan’s New Programmable Payments in Blockchain

Best of Both Worlds with Permissioned DeFi

Permissioned DeFi solves these concerns by integrating the best of both worlds: the efficiency of DeFi and the necessary compliance controls. This model involves several key steps and 8 key participants, ensuring a secure, compliant, and efficient process for cross-border transactions.  Here's the step-by-step process below:

Step 1. KYC Process and Whitelisting: Institutions undergo a platform-level KYC process conducted by whitelisters, who approve users and add their digital wallets to the allowed list. Institutions can act as whitelisters or appoint third parties for this role.

Step 2. Initiating the Transaction: Once KYC-approved, a sender (individual, business, or institution) can initiate a cross-border fiat money transfer.

Step 3. On-Ramp Instruction to OOSP: The sender’s fiat balance is debited by an On- and Off-Ramp Service Provider (OOSP), and the sender’s digital wallet is credited with a token of equivalent value.

Step 4. Token Types: The model can use various tokens, like bank-issued stablecoins or central bank digital currencies (CBDCs), representing the transaction’s main payment format.

See:  Insights Into Canada’s Evolving Payments Landscape

Step 5. Wrapping the Token: The token received in the digital wallet is wrapped by a service provider for interoperability across blockchains. The wrapping process involves locking the initial token in a smart contract and minting an equivalent amount of the wrapped token.

Step 6. Smart Contract and AMM:  A smart contract deployed on the permissioned DeFi protocol handles the transfer of the wrapped token. An Automated Market Maker (AMM) provides a liquidity pool to facilitate trades and ensure near-instant settlement.

Step 7. Unwrapping and Off-Ramping: Receivers can unwrap the received token on another blockchain network.If fiat currency is preferred, an off-ramp step converts the token back to fiat, crediting it to the receiver’s bank account.

Cost Advantage

The use of permissioned decentralized finance (DeFi) with cross-border payments is estimated to be 80% cheaper than a traditional global payment transaction.

Let's compare the two payment methods by cost category in the table below which clearly illustrates the cost-effectiveness of permissioned DeFi in cross-border payments, highlighting the potential for significant savings for both payment service providers and end customers.

Cost CategoryTraditional PaymentsPermissioned DeFi-Based Payments
Operational & IT Costs$6.40 (80% of total)$0.05 to $0.09
Compliance Costs$1.20 to $1.60 (15%-20% of total)Assumed same as traditional: $1.20 to $1.60
Total Cost per Transaction$8.00$1.25 to $1.69
  • There's a significant reduction in operational and IT costs in the permissioned DeFi model, dropping from $6.40 to a mere $0.05 to $0.09 per transaction.
  • These costs are assumed to remain the same in both models, ranging from $1.20 to $1.60 per transaction. This assumption is based on the premise that the regulatory and compliance requirements are similar across both platforms.
  • The overall cost per transaction in traditional payments is $8.00, whereas in the permissioned DeFi-based model, it ranges from $1.25 to $1.69. This represents a substantial cost reduction of approximately 80% in the permissioned DeFi model compared to traditional payment methods.

See:  Bank-Issued Deposit Tokens Emerge and JP Morgan Sees Them Going DeFi

Conclusion

Permissioned DeFi is poised to redefine the landscape of cross-border payments with an efficient, cost-effective and secure solution that is compliant with regulatory standards. By addressing the limitations of both traditional payment systems and permissionless DeFi, this innovative model opens up new possibilities for global financial transactions, making them more accessible, transparent, and efficient.


NCFA Jan 2018 resize - How Permissioned DeFi Will Transform Global PaymentsThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Embedded Finance: Banking Meets the Customer

Embedded Finance Research | Nov 6, 2023

Embedded finance is revolutionizing the way consumers and businesses interact with financial services from lending to wealth management, and embedding them into the very platforms we use daily. 

The Visa Consulting and Analytics Team (VCA) has published a report titled 'Embedded Finance - What are the emerging opportunities in this new value chain' covering key players, trends, and various examples where financial services are seamlessly integrated into non-financial digital platforms.

The Essence of Embedded Finance

Embedded finance is the integration of financial functions into environments where they were previously unavailable. Imagine buying a car from an online retailer and getting loan approval on the spot, or a gig worker receiving payments on a virtual card without ever having to visit a bank. This is the power of embedded finance – it brings banking to the customer, rather than bringing the customer to the bank.

See:  Marqeta 2023 State of Payments Report: Rise of P2P Payment and Embedded Financial Services, & Hybrid Future?

Key Players in the Value Chain

  1. Providers: These are typically financial institutions or fintech companies that offer financial products and services through application programming interfaces (APIs).
  2. Enablers: They are the middleware, offering the necessary software and regulatory support to bridge providers with distributors.
  3. Distributors: These are the non-financial platforms – such as e-commerce sites, gig economy platforms, or even social media apps – where consumers congregate and transact.

Key Trends

According to Visa Consulting & Analytics, the embedded finance market is poised for explosive growth, with a projected compound annual growth rate of 23.9%, reaching a staggering US$776 billion by 2029. This growth is fueled by three emerging trends:

  • Deep Integration of Payment Solutions -> Payment options are becoming more ingrained in the merchant ecosystem, exemplified by Grab's e-wallet, Grab Pay, which rewards users for in-app payments.
  • Rise of Unsecured Embedded Lending -> There's a burgeoning demand for unsecured lending, particularly in emerging markets where flexible lending solutions are in high demand.
  • White-Label Solutions -> Smaller merchants are turning to third-party white-label solutions for embedded payment systems, allowing them to compete without the need for extensive resources.

Embedded Finance Examples

See:  BCG and QED Investors Global Report: Reimagining the Future of Finance 2023

These examples showcase how embedded finance is being utilized across different sectors to provide value-added services, often leading to enhanced customer experiences and new revenue streams for businesses.

  1. Payments: Shopify Payments allows merchants to accept credit cards directly on their Shopify store without having to integrate third-party payment providers. This streamlines the process for both the merchant and the customer, providing a seamless checkout experience.  (See:  VoPay Launches VoPay360 – Embedded Financial Technology)
  2. Lending: Affirm's integration with online retailers enables customers to apply for and receive financing at the point of sale. This allows customers to make purchases immediately and pay for them over time through installment loans.
  3. Issuance: Stripe Issuing lets businesses create, manage, and distribute virtual or physical cards. This can be used for managing company expenses, enabling online spending for customers, or providing flexible payment options.
  4. Deposits: Rideshare companies like Uber or Lyft offer drivers the ability to open an account through their app, where they can deposit their earnings. In some cases, these platforms partner with banks or fintech firms to offer these banking services.
  5. Insurance: Lemonade provides API-based home insurance that can be integrated into real estate websites. When someone rents or buys a property, they can immediately purchase insurance coverage as part of the transaction process.  (See:  Duuo by Co-operators: A New Era of Embedded Insurance for Canadian Businesses)
  6. Wealth Management:Wealthfront and Betterment offer robo-advisory services that can be integrated into banking apps or financial management platforms, allowing users to access wealth management services and receive personalized investment advice based on their financial data.

The Impact on Financial Institutions

For traditional financial institutions, embedded finance represents both a challenge and an opportunity. Banks and credit unions must adapt to this new paradigm by becoming more agile, embracing API-driven architectures, and forging strategic partnerships with non-financial platforms. By doing so, they can tap into new customer segments and create alternative revenue streams.

The Role of Regulation and Technology

Regulatory frameworks like open banking have catalyzed the growth of embedded finance by mandating the sharing of financial data in a secure and standardized manner. Meanwhile, advancements in technology, particularly in API infrastructure, have lowered the barriers to entry, allowing even small players to offer sophisticated financial services.

Download the 13 page PDF report --> here


NCFA Jan 2018 resize - Embedded Finance: Banking Meets the CustomerThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Tap-to-Pay Transactions and Big Tech Dominance Is A Thorn for CFPB

Regulation and Competition | Sep 11, 2023

Unsplash Rahul Chakraborty Mobile phone - Tap-to-Pay Transactions and Big Tech Dominance Is A Thorn for CFPB

Image: Unsplash/Rahul Chakraborty

The article titled "Report Highlights Role of Big Tech Firms in Mobile Payments" from the Consumer Financial Protection Bureau (CFPB) discusses the influence of Big Tech companies on mobile payments, particularly tap-to-pay functionalities on mobile devices.

The Problem:  Tap-to-Pay and Big Tech

Tap-to-pay usage in the U.S. has seen substantial growth, nearing an estimated $300 billion across Apple Pay, Samsung Pay, and Google Pay. It's predicted that digital wallet tap-to-pay transactions will grow by over 150% by 2028.

Apple and google are dominant in U.S. mobile:  As of the second quarter of 2023, Apple's iOS was on 55% of smartphones shipped in the U.S., while Google's Android was on 45%.

See:  Policy Blind Spot: The Interdependencies of Big Tech and Their Foothold in Financial Services

Regulating access: Apple's iOS devices do not allow third-party payment apps to access NFC technology, making Apple Pay the only option for tap-to-pay on iOS devices. Google's Android, on the other hand, does not restrict third-party payment apps from accessing the NFC chip, but this could change.

Restrictions on tap-to-pay can limit consumer choice and hinder the move towards a more open banking ecosystem. For instance, Apple's NFC policy does not allow direct integration of tap-to-pay into existing banking apps and other payment apps like PayPal, Venmo, and Cash App.

CFPB Efforts

The spotlight is part of CFPB's broader initiative to monitor the transition to open banking in the U.S., including trends in consumer payments and the introduction of multi-service super apps.

See:  ISED Launches Competition Act Review: Consultation on the Future of Competition Policy in Canada

The CFPB is working on a rulemaking required by Section 1033 of the Consumer Financial Protection Act to clarify consumers' personal financial data rights. This could speed up the shift towards open banking in the U.S., emphasizing interoperability across consumer financial products and services.

Striking A Balance and Competitive Landscape

The evolving landscape of mobile payments, driven by the policies and practices of tech giants like Apple and Google, underscores the intricate balance between innovation, consumer choice, and market dominance. As tap-to-pay transactions surge in popularity, the regulations set by these leading mobile operating systems play a pivotal role in shaping the future of retail payments.

Read:  Canada’s Competition Problem: 7 Reasons

While these regulations can offer streamlined and secure payment solutions, they also raise concerns about reduced consumer choice and potential stifling of innovation. It's imperative for stakeholders, from policymakers to consumers, to stay informed and engaged in this rapidly changing domain to ensure a fair and competitive mobile payments ecosystem.

FAQ

1. How might the restrictions imposed by Apple on tap-to-pay functionality impact the competitive landscape of mobile payments?

Answer: Apple's restrictions on tap-to-pay functionality, particularly its decision to limit access to NFC technology to only Apple Pay on iOS devices, can create a competitive advantage for Apple Pay in the mobile payments market. Given that Apple's iOS holds a significant market share, this can lead to reduced choices for consumers who use iOS devices. Additionally, third-party payment apps and banks might find it challenging to compete on an even playing field, potentially stifling innovation and competition in the mobile payments sector.

See: Monopoly-Friendly Canada ‘Does Not Treat Competition Policy Seriously’

2. How does the growth of tap-to-pay transactions correlate with the increasing dominance of mobile operating systems like iOS and Android in the U.S.?

Answer: The dominant market shares of iOS and Android, combined with the rapid growth of tap-to-pay transactions, highlight the pivotal role these operating systems play in shaping the retail payments landscape. As more consumers adopt smartphones with these operating systems, the policies and practices set by Apple and Google directly influence how consumers make payments. The increasing shift towards mobile device payments underscores the importance of their policies, especially as they can either promote or hinder the adoption of tap-to-pay solutions, impacting consumer behavior and the overall growth trajectory of the mobile payments industry.


NCFA Jan 2018 resize - Tap-to-Pay Transactions and Big Tech Dominance Is A Thorn for CFPBThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Autonomous IoT Transactions and Micropayments

Payments | Sep 1, 2023

Unsplash Dan LeFebvre IoT Automation - Autonomous IoT Transactions and Micropayments

Image: Unsplash/Dan LeFebvre

In the ever-evolving world of fintech, the fusion of the Internet of Things (IoT) and micropayments is poised to redefine the way we perceive and conduct transactions.

The Catalyst for Change

As devices become smarter and more interconnected, the need for seamless, real-time transactions becomes paramount. Enter micropayments, the unsung hero of the digital age, ready to facilitate these instantaneous exchanges. Let's embark on a journey to explore the future of autonomous transactions through the lens of IoT and micropayments.

See:  Signals by Mastercard: Trends to Watch in the Future of Payments

IoT, at its core, represents a vast network of devices, from your refrigerator to your car, all communicating and sharing data. By 2025, it's estimated that there will be over 41 billion IoT devices worldwide. This digital symphony offers a plethora of opportunities, especially in the realm of transactions. Imagine a world where your car pays for its fuel, or your refrigerator restocks itself, all without human intervention.

Yes, yes.  We've heard it all before since the concept of home automation first appeared in the mid-70s but given the explosion of technologies, interoperability and connected networks, growing number of use cases and adoption, but the opportunity seems different in 2023.

Traditional payment systems, with their cumbersome processes and fees, are ill-suited for the rapid, low-value transactions that IoT promises. Micropayments, with their ability to handle small amounts efficiently, emerge as the perfect solution. They promise minimal transaction fees, instant processing, and a level of flexibility that's music to the ears of the IoT ecosystem.

Real-world Convergence

  • Smart Grids: As cities become smarter, utilities will leverage IoT to monitor real-time consumption. Micropayments can facilitate instantaneous billing, allowing consumers to pay for their exact usage, fostering transparency and efficiency.

Report:  A Big Future for Small Payments - European Central Bank

  • Connected Mobility: The future car is not just autonomous in navigation but in transactions too. Envision a scenario where vehicles communicate with toll booths, parking spaces, or charging stations, making micropayments on-the-go.
  • Intelligent Homes: Beyond the realm of sci-fi, smart homes will soon autonomously manage their supplies. Your coffee machine could order beans when running low, and your thermostat might purchase energy off the grid during off-peak hours, all facilitated by micropayments.
  • Healthcare Revolution: Wearable devices could soon be making healthcare decisions for you. From ordering medications when they detect an anomaly to booking a doctor's appointment based on real-time health data, the potential is immense.

Challenges

While the convergence of IoT and micropayments paints a rosy picture, it's not without challenges. Security remains a paramount concern. With billions of devices transacting autonomously, the threat landscape expands. Scalability is another hurdle. As the number of IoT devices burgeons, can our current micropayment infrastructure keep up?

See:  Lyn Alden Analysis: A Look at the Lightening Network

Moreover, there's the challenge of standardization. For a truly seamless experience, devices from different manufacturers need to "speak the same language." This calls for industry-wide collaboration and perhaps the creation of universal standards.

In Conclusion

The fusion of IoT and micropayments is more than just a trend; it's the future of transactions. As we stand on the cusp of this revolution, it's essential to embrace innovation while being cognizant of the challenges.  In the words of futurist R. Buckminster Fuller:

We are called to be architects of the future, not its victims." The fusion of IoT and micropayments is our chance to architect a future where transactions are not just seamless but also autonomous, efficient, and intelligent.


NCFA Jan 2018 resize - Autonomous IoT Transactions and MicropaymentsThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Duuo by Co-operators: A New Era of Embedded Insurance for Canadian Businesses

Press Release | July 20, 2023

Freepik Storyset insurance - Duuo by Co-operators: A New Era of Embedded Insurance for Canadian Businesses

Image: Freepik/Storyset

In a significant move for the insurance industry, Duuo by Co-operators has launched its first embedded insurance API for partners, designed to enhance the customer experience by integrating the insurance purchase journey directly into their website, app, or platform. The first product to be launched in this new format is Duuo Event Insurance, offering event hosts a seamless experience of booking a venue and securing event coverage.

See:  Here is why InsurTech is heating up as an investment category

The implications of this launch are far-reaching. By embedding insurance directly into platforms, Duuo by Co-operators is simplifying the insurance process, making it more accessible and convenient for customers. This could potentially revolutionize the way insurance is purchased and consumed, setting a new standard for the industry.

Following the event insurance, Duuo by Co-operators plans to launch their tenant insurance API, further expanding their embedded insurance offerings. This move signifies the company's commitment to innovation and customer-centric solutions, positioning them as a leader in the insurance industry.

Steve Phillips, Executive Vice-President of Emerging Business Models at Co-operators:

"This new journey we’re embarking on rapidly expands our ability to allow our partners to grow and differentiate themselves in their own market, on their own terms."

This statement highlights the company's commitment to providing flexible, adaptable solutions that benefit both their partners and customers.


NCFA Jan 2018 resize - Duuo by Co-operators: A New Era of Embedded Insurance for Canadian BusinessesThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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