Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Payments, Transfers, Rewards
The Convergence of Smart Grids and Smart Money
AI and Payment Innovation | Oct 10, 2023
Image: Unsplash/Deividas Toleikis
The emergence of a smart grid in payments coupled with artificial intelligence (AI) is a pivotal shift towards smart money and—where transactions are not merely exchanges but intelligent interactions.
Invisible, ID-based Smart Grids
"The more invisible a payment is, the smarter it is," a notion that encapsulates the essence of the evolving payment grid. Largely unseen and innovating at an unprecedented speed, crafting a smart grid that intertwines with our digital interactions. The invisibility here is not an absence but a subtle, intelligent presence that facilitates, secures, and enhances every transaction.
See: Mastercard is Navigating Global Trust Frameworks and Building a Global Digital Identity Network
A pivotal focus for the future of payments is the emphasis on proving identity. The shift from credential-based payments, such as card information, to identity-based validations, underscores a transition towards a more secure and personalized financial ecosystem. The digital ID doesn’t merely serve as a verification tool; it becomes an integral part of the user’s digital persona, ensuring transactions are not just secure but also inherently tied to the individual, not just the credentials.
The potential incorporation of blockchain technology could revolutionize the way financial institutions interact and share data securely amongst each other. Imagine a grid where banks and financial entities could validate details in a payment before it’s sent, ensuring absolute accuracy and significantly speeding up the process. This shift is a redefinition of trust and reliability in the digital finance domain.
Smart Money 'Talks Back'
Imagine payment data that doesn’t just validate but “talks back” through virtual assistants, providing real-time insights, suggestions, and even predictive analyses of spending patterns. This isn’t just smart; it’s intuitive, crafting a financial interaction that’s tailored, insightful, and inherently secure.
See: LQWD’s AI Tech Achieves 4500% Lightning Network Surge
The irony isn’t lost when we consider AI being utilized to combat fraud, which is being perpetuated at an “industrial pace” by AI itself. It’s a synthetic battle, where AI systems are locked in a perpetual chess match, one trying to outwit the other, crafting a scenario where the technology becomes both the shield and the sword in the financial realm.
Things Are About To Get Personal
In the convergence of the smart grid and smart money, the future of finance is not just about transactions but about intelligent, secure, and personalized interactions. It’s a future where your identity is not just a validator but a two-way communicator, where AI facilitates, protects, and advises in your financial journey.
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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Visa Announces $100 Million Generative AI Initiative
AI | Oct 5, 2023
Visa Ventures to Lead the $100 Million Fund
Visa, the global payments company, has made a strategic move into the field of generative AI. In an effort to support startups in this growing sector, Visa has launched a $100 million venture fund. The aim is to explore the potential of generative AI, which can revolutionize commerce. This move aligns Visa with other major companies, such as Microsoft and Google, who also recognize the opportunities in AI.
The initiative will be spearheaded by Visa Ventures, the global corporate investment arm of Visa, which has been investing in and partnering with innovative companies in payments and commerce since 2007.
Generative AI, an emerging subset of AI, is built on Large Language Models (LLMs) and is capable of generating text, images, or other content from extensive sets of existing data when provided with prompts. Jack Forestell, Chief Product and Strategy Officer at Visa Inc., emphasized that while generative AI has predominantly been utilized for tasks and content creation, its impending influence will not only reshape our daily lives and work but will also instigate meaningful changes in commerce that necessitate comprehensive understanding and exploration.
See: Visa’s Solutions for the Creator Economy and Fintech Opportunities for Tomorrow’s Digital SMBs
David Rolf, Head of Visa Ventures:
With generative AI’s potential to be one of the most transformative technologies of our time, we are excited to expand our focus to invest in some of the most innovative and disruptive venture-backed startups building across generative AI, commerce, and payments.
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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LQWD’s AI Tech Achieves 4500% Lightning Network Surge
Lightening Network | Oct 5, 2023
Image: LQWD
LQWD Technologies boosts Lightning Network channels with AI, achieving a 4500% surge in LQWD-Canada node channels and top 5 ranking.
October 5, 2023 - Vancouver, British Columbia / LQWD Technologies Corp., a prominent Bitcoin Lightning Network Service Provider integrates high-impact Artificial Intelligence (AI) technology to enhance and automate its Lightning Network channels, ensuring optimal performance and efficiency.
After a meticulous nine-month data collection period from its nodes spread across eighteen countries and amalgamating TensorFlow Framework with Nvidia’s AI technology, LQWD has managed to tap into the substantial potential of AI.
The results are staggering: LQWD-Canada node has witnessed a 4500% surge in its channels, propelling it to rank among the top nodes on the entire Lightning Network.
See: The Most Efficient Payment System In The World: Bitcoin And The Lightning Network
The data-driven models developed by LQWD offer profound insights into the swiftly adopting Lightning Network, covering aspects like channel openings, channel imbalances and rebalancing, and network fees. These critical insights pave the way for the creation of intelligent software that prioritizes efficient node management, thereby catalyzing transaction growth.
Shone Anstey, LQWD’s CEO:
With the integration of AI technology, LQWD solidifies its position as a trailblazer in the Bitcoin Lightning Network community. This advancement in operations has pushed the LQWD-Canada node to a top 5 ranking of nodes on the Lightning Network. We will continue to leverage AI-powered automation to promote transaction growth.
See: Lyn Alden Analysis: A Look at the Lightening Network
LQWD, as a Lightning Network Liquidity Provider, is dedicated to developing payment infrastructure and solutions that bolster the global mega-trend of Bitcoin adoption through the Lightning Network. The company also possesses Bitcoin, which is utilized as an operating asset to establish nodes and payment channels on the Lightning Network. Real-time tracking of LQWD’s nodes transaction volume and connection to global routing nodes is accessible on their website.
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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BoC: Redefining Financial Inclusion for CBDCs
Report | Oct 4, 2023
Bank of Canada's Staff Release New Research on Implications for a Central Bank Digital Currency
- Today, the Bank of Canada's staff released their latest report, "Redefining Financial Inclusion for a Digital Age: Implications for a Central Bank Digital Currency," which delves into the intricacies of digitalization and its impact on financial and digital inclusion, particularly in the realm of payments.
- The Bank of Canada has been exploring the concept of CBDCs and considering various aspects related to its implementation, such as technology options, unmet payment needs, security, and privacy.
- As over 130 central banks around the world are actively researching, developing, or implementing their own CDBCs, and the IMF is implementing a cross-border CBDC global platform.
Report Insights
1. Digitalization and Financial Inclusion
- Canada experiencing a notable shift in consumer behavior and technology use, especially in how Canadians manage money and make payments.
- The decline in the use of cash in favor of cards and digital payments has been significant, prompting broader considerations about digital money and its social implications.
- Digitalization has permeated society, offering new opportunities but also creating and exacerbating existing inequities, especially in payments.
See: Bank of Canada Seeks Your Input on Transaction Reports
- The report applies the social model of disability to the Canadian payments landscape to identify opportunities to remove barriers that marginalize or hinder people. The authors aim to build awareness of the inequities and challenges present in the current payments system and motivate fintech providers to offer more inclusive products and services.
2. Challenges in the Current System
- The authors identify barriers faced by rural populations, Indigenous communities, Canadians with low incomes, and persons with disabilities in using financial products.
- There is a noted deficiency in the current research and payment offerings for those with cognitive accessibility challenges.
- Financial inclusion is often measured by access to bank accounts, with 98% of Canadian adults having a bank account and a debit card.
- However, the remaining 2% who are unbanked, and the 13% without a credit card, may face limited options for online purchases and are at a higher risk of being excluded from the digital economy.
See: McKinsey Global Payments On Cusp of ‘Decoupled Era’
- The decline of cash as a payment method, from approximately 53% in 2009 to below 21% in 2021, also poses challenges for those who rely on banknotes.
3. Trust and Literacy in Financial Inclusion
- Trust and literacy emerge as recurring themes across financial inclusion research. Some people with low incomes have shown a preference for paper bills as assurance when transacting with banks and billing firms.
- Discrimination experiences, especially in financial institutions and banks, have been reported by Black and Indigenous respondents, which may influence their engagement with traditional financial services.
What Can Canada Learn About CBDCs in Other Jurisdictions?
GDPR and Data Privacy
- The General Data Protection Regulation (GDPR) has been implemented by the European Union and is considered a gold standard in regulating how companies use and secure consumer data.
- GDPR-like data privacy laws have been adopted by many countries around the world since 2018, affecting international enterprises with customers or employees in Europe as well as those serving as data processors in Europe or for European companies.
- The implementation of GDPR has faced challenges such as insufficient funds, complex procedural labyrinths, and infighting on implementation among national enforcers.
See: Can Privacy and Financial Regulation Co-exist?
- The GDPR has led to many companies considering reducing their presence in Europe significantly, or even halt services in entire jurisdictions.
Best Practices in CBDCs and Privacy
- Ensuring that users have control over their data and are aware of how it is being used is crucial. This involves clear communication about data usage policies and providing options for data control to the users.
- Some CBDC models propose different levels of anonymity, such as "loose" anonymity, where the transaction data is visible to the central bank or "tight" anonymity, where the data is not visible to the bank.
- Implementing data minimization practices that limit the collection of user data to what is strictly necessary for the transaction or service.
- Employing robust security measures to protect user data from unauthorized access and breaches.
- Establishing a clear legal framework that outlines the rights of the users and the obligations of the CBDC providers.
Country Model Examples
- China's Digital Currency Electronic Payment (DCEP) model has been in pilot testing in various cities. The model is designed to replace cash in circulation and is not fully anonymous. The People’s Bank of China will be able to trace the DCEP to fight against money laundering, terrorist financing, and tax evasion. See also: Offline payments via super SIM cards
- Sweden's e-Krona model by Sweden's central bank, Riksbank, is exploring to have an electronic currency that could ensure that the general public will retain access to a state-guaranteed means of payment in the future.
- Bahamas' Sand Dollar is a digital version of the Bahamian dollar, launched by the Central Bank of The Bahamas. It provides for digital identity and maintains transaction privacy but is also compliant with AML/CFT regulations.
The Consumer's Voice is Critical
The insights derived from the report could serve as a foundational framework for policymakers, financial technology providers, and central banks in designing and implementing digital payment products and services that are not only technologically advanced but also universally accessible and equitable. Beyond fintech innovators, traditional financial institutions, and policy-makers, the general public and consumer must be consulted and brought to the forefront of the discussion.
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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McKinsey Global Payments On Cusp of ‘Decoupled Era’
Oct 3, 2023
Iage: McKinsey 2023 Global Payments Report, Exhibit 1
Navigating the Surge and Strategy of Global Payments
The McKinsey 2023 Global Payments Report unveils a realm where regions experience unprecedented revenue hikes, digital transactions become paramount, and new payment business strategies are essential for navigating through the intricate financial ecosystem. Explore the pivotal insights and trends shaping the future of global payments, unearthing opportunities, challenges, and the strategic pathways ahead for financial entities.
Widespread Double Digit Growth
The global payments industry has witnessed robust growth, with revenues increasing by double digits for the second consecutive year. This growth trajectory reflects a remarkable resilience despite the numerous challenges and adversities faced by the financial ecosystem globally. Most regions experienced significant revenue growth, with North America, Latin America, and Europe, the Middle East, and Africa (EMEA) recording double-digit increases - the highest in the past decade.
See: [Brookings Event, Oct 6, 2023]: Payments in America for a Digital Century
In contrast, the Asia–Pacific region, which traditionally has been a major contributor with 47% of global payments revenues, showed a subdued trend. While the region has been a key growth driver in recent years, 2022 saw only a 4% increase in its revenues. This slowdown can be attributed to a 3% drop in payment revenues in China. However, when we exclude China's figures, the Asia–Pacific region displayed a robust growth of 25%, surpassing its own growth rate from the previous year.
Select Report Insights
India has seen a substantial shift, moving into the top five countries for payments revenues. This movement is propelled by the sustained growth experienced in the country, which is significantly fueled by the displacement of cash transactions.
For the first time in several years, interest-based revenue has made a significant contribution, accounting for nearly half of the revenue growth in the payments sector. This indicates a shift in the revenue generation dynamics within the industry.
In 2022, cash usage globally declined by nearly four percentage points. Over the past five years, the growth rate for electronic transactions has been nearly triple the overall growth in payments revenue, signaling a shift towards digital and electronic payment modalities.
See: Key Insights and Trends from Citi’s Payments Survey
The payments sector has undergone significant evolution, moving through distinct eras and currently transitioning from the Account Era to what the team at McKinsey calls a "Decoupled Era." This transition implies a shift towards more integrated and user-centric payment solutions, decoupling traditional account mechanisms from payment functionalities.
Building New Payment Businesses 'Carpe Diem'
$3 Trillion payment revenue is estimated by 2027. Electronic transactions have been growing at a rate nearly triple the overall growth in payment revenue over the past five years, and as such building new payment businesses is a crucial strategy for banks, financial institutions, and fintechs.
- The era of embedded finance is upon us, opening avenues for financial institutions to integrate services within non-financial platforms, enhancing user experiences and facilitating seamless transactions. By embedding financial services into e-commerce, social media, and other digital ecosystems, new revenue streams are created, fostering a cohesive relationship between various sectors.
- In the realm of cross-border payments, technology like blockchain and stablecoins are pivotal in ensuring transactions are faster, more transparent, and cost-effective. Financial institutions can leverage these technologies to facilitate global trade and enhance international financial connectivity, thereby reinforcing their role in the global financial infrastructure.
- Alternative supply chain finance solutions provide an avenue for financial institutions to offer liquidity and stability to suppliers and buyers, thereby contributing to the overall robustness and sustainability of the global trade ecosystem. This ensures enhanced operational efficiency and facilitates a stable financial flow within the global supply chain.
See: FIS Dives Deeper into Embedded Finance with Bond Acquisition
- With interest-based revenue contributing nearly half of revenue growth for the first time in several years, reimagining deposit strategies becomes imperative. Financial institutions must develop and promote products that cater to specific needs and preferences of various customer segments, ensuring financial inclusivity and health, such as:
- Liquidity Insight for Clients
- Centralized Deposit Management Hub
- Targeted Deposit Growth Sales Strategy
- Value Offerings for Liquidity-Rich Clients
- Advanced Analytics and Strategic Pricing Models
Payment Modernization and Operational Efficiencies
Embracing technological advancements, streamlining operations, and enhancing digital capabilities are pivotal in modernizing payment infrastructures. By focusing on improving productivity and aligning with contemporary payment modalities, financial entities ensure they are equipped to navigate the complexities of the modern financial landscape.
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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ZayZoon raises $34.5M in Series B, Championing EWA for SMBs
Funding | Sep 29, 2023
Image: Unsplash/Fabian Blank
ZayZoon, a prominent Earned Wage Access scale-up for small and mid-sized businesses, and founded in Calgary, recently announced that they raised $34.5 million in debt and equity during its Series B financing round.
- Investors include Framework Venture Partners who led this round, with notable co-investment from Export Development Canada (EDC) and participation from ATB Financial and existing shareholders.
- ZayZoon is a financial empowerment platform specifically designed for small and mid-sized businesses. The company's primary mission is to provide employees with the ability to access their earned wages before the traditional payday, a service known as Earned Wage Access (EWA). This innovative approach aims to alleviate financial stress and break the paycheck-to-paycheck cycle that many individuals face.
- Catering to the varied needs of its users, ZayZoon offers multiple payout options, including bank deposits, debit cards, and fee-free alternatives like Instant Gift Cards and Gas Cards
See: Redefining Payday: Earned Wage Access (EWA) Insights from Harvard Study
- ZayZoon emphasizes seamless integration with existing payroll and HR infrastructures. In 2023, the company was notably recognized as an ADP and PrismHR Marketplace Partner of the Year.
- Their trajectory is nothing short of remarkable, boasting a 400% increase in payouts year-over-year. Their expanding clientele includes household names such as Dunkin’, McDonald’s, and Amazon Warehouses. This growth underscores the rising demand for EWA and employee engagement platforms, particularly among the SMB sector.
Darcy Tuer, Co-Founder and CEO of ZayZoon
This financing will fuel our mission in being a true partner in financial health and workplace engagement to small and midsize businesses. Not only does ZayZoon act as a substantial competitive advantage for the business, but it helps the millions of Americans living paycheck to paycheck get by between paydays and plan for the future.
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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Bank of Canada Seeks Your Input on Transaction Reports
BoC | Sep 28, 2023
Image: WikiCommons Media/Bank of Canada
The Bank of Canada has extended an invitation to members of the Retail Payment Advisory Committee (RPAC) and the broader payment service provider (PSP) community to share feedback on its supervisory approach to transaction reporting.
The Bank is keen on understanding the current practices of payment service providers (PSPs) and aims to develop an effective strategy for transaction reporting. This initiative is not limited to RPAC members alone; the Bank is actively seeking diverse opinions from the entire PSP industry.
See: Citi’s Top 10 Insights on Cross-Border Payments 2023
By sharing your feedback, you will help the Bank gain insights into the current practices of PSPs and also contribute to the development of a robust transaction reporting approach.
Survey
The Bank has launched a survey to better understand the information needs of PSPs. This will aid PSPs in understanding the Bank's expectations and preparing for upcoming retail payment supervision. The results of this survey will shape the Bank's communication strategy, ensuring PSPs are well-informed and ready to comply with forthcoming legislation. The survey is entirely voluntary, and the Bank guarantees that no personally identifiable information will be collected or shared. You can complete the survey here.
Registration Pilot for Retail Payment Activities Act
The Bank is gearing up for the enforcement of the registration requirement under the Retail Payment Activities Act, expected in the latter half of 2024. To ensure a smooth and efficient registration process, the Bank is launching a pilot program. They are seeking volunteers, both individuals and entities subject to the Act, to test the registration process. Information about this pilot will be shared by December 2023, with the pilot tentatively set to commence in April 2024. Interested parties can sign up using the online form.
Thanks For Your Feedback
NCFA Canada encourages all its members and stakeholders to actively participate in this feedback process. Your expertise and insights will play a crucial role in shaping the future of transaction reporting in Canada. Let's collaborate and ensure that the industry's voice is heard.
See: Top 20 Fintech Blogs in Canada
For those wishing to share their feedback directly with the Bank of Canada, you can email your thoughts here by October 16, 2023.
Thank you for your continued commitment to advancing the fintech and alternative finance sectors in Canada.
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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