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
Overcoming KYC: How Nodeless is Simplifying Bitcoin Transactions for Merchants
Decrypt | Alyssa Hertig | Jun 26, 2023
Nodeless, a new revolutionary platform in the Bitcoin ecosystem, is making waves for its innovative approach to facilitating transactions on the Bitcoin Lightning Network enabling merchants to accept Bitcoin payments in a seamless manner, distinguishing itself as a non-KYC service that prioritizes privacy and efficiency.
- Canadian fintech company: The platform's name, 'Nodeless', originates from its unique operating model. In a typical Lightning Network setup, users must run their own Lightning node, a process that can be challenging for non-technical users or those strapped for resources. Nodeless simplifies this process by taking over the role of the node operator.
- When a payment is made, it is sent to Nodeless, which then promptly forwards the payment to the merchant’s designated Bitcoin address. This approach enables merchants to accept payments without the need for technical knowledge or the responsibility of running a node.
- While Nodeless does technically hold the user's funds briefly during the transaction process, the platform is committed to forwarding these funds quickly to the user's Lightning or Bitcoin address, resulting in a streamlined payment experience.
See: Payments without banks goes mainstream with Twitter on Bitcoin Lightning Network
- A key differentiator for Nodeless is its non-KYC (Know Your Customer) stance. Unlike traditional financial institutions and many digital payment providers, Nodeless does not require users to share identifying information to begin accepting payments. This feature has sparked interest among merchants and users looking for increased privacy in their transactions.
- However, this business model has raised some eyebrows.
- Critics argue that as Nodeless grows, it may face increasing regulatory scrutiny, particularly around its non-KYC policy and its centralized control over transactions.
- Despite these concerns, Nodeless remains optimistic, operating legally under Canadian laws where transactions under $1,000 do not require KYC identification. The company is also considering a move to El Salvador, a country known for its welcoming attitude towards Bitcoin and cryptocurrencies.
- Outlook: Nodeless is offering a novel approach to Bitcoin Lightning payments that could reshape the way merchants and users interact with Bitcoin. By simplifying the payment process and prioritizing user privacy, Nodeless is paving the way for broader adoption of Bitcoin as a medium of exchange. While regulatory hurdles may lie ahead, the platform's innovative model has the potential to significantly impact the Bitcoin ecosystem.
View more --> here
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, 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
 |  |  |
|---|---|---|
 |  |  |
IMF Working on Global CBDC Platform to Revolutionize Global Remittances and Trade
Reuters | Ahmed Eljechtimi | Jun 19, 2022
Image: John Harrington
The International Monetary Fund (IMF) is developing a platform for central bank digital currencies (CBDCs), aiming for global interoperability and efficiency in cross-border transactions.
- CBDCs, being government-issued and having a fixed value equal to the country's fiat currency, provide a stable means of exchanging digital assets, unlike the volatile cryptocurrency market. The platform is designed to support efficiency, transparency, and interoperability of settlements, which could help enable countries to transact with one another more fairly and efficiently.
- Note, there are significant privacy-related and other risks with CBDCs, you can read here.
- This move by the IMF signifies a major step towards the digitization of currencies on a global scale.
- It could revolutionize international trade and financial transactions, making them more efficient and cost-effective. For businesses, this means the potential for smoother, quicker, and cheaper international transactions, possibly opening up new markets and opportunities.
See: Ottawa to review Crypto, Stablecoins and CBDCs; Budget promises more financial cops
- Financial Inclusion and Cost Reduction
- CBDCs could promote financial inclusion by providing access to financial services at a lower cost. The adoption of CBDCs can lower costs for those sending remittances and reduce settlement and counterparty risks for banks in cross-border transactions thus boosting profitability with the average cost of money transfers standing at 6.3%, amounting to $44 billion annually.
- For businesses, this could mean access to a wider customer base, particularly in developing markets.
- Global Adoption and Governance Challenges
- Already, 114 countries representing more than 95% of global GDP are exploring CBDCs, with 60 in an advanced phase of development, pilot, or launch. However, if poorly designed, CBDCs could lead to financial stability risks, data privacy and legal challenges, financial integrity and cyber risks, and central bank operational risks. The implementation of CBDCs, especially the legal underpinnings and governance arrangements, is complex and challenging.
Read more --> here
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, 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
| | |
|---|---|---|
| | |
Aquanow: Stablecoins and Gauging Market Sentiment
Aquanow | Sebastien Davies | Jun 22, 2023
Assessing Market Sentiment with Stablecoins, Aquanow
Centralized, asset-backed stablecoins like USDT are gaining significant market share due to their increased transparency and minimal dependence on traditional banking systems, with platforms like Curve Finance's 3Pool serving as critical tools for gauging market sentiment in the digital economy.
- In the digital assets landscape, the spotlight is on stablecoins, particularly those of the centralized and asset-backed type.
- These intriguing programmable money forms, characterized by their fixed prices, are not about price speculation but rather a story of financial innovation and user adoption.
- Their inherent price stability, however, does not exclude occasional bouts of volatility, pivotal moments that underscore their vital role in the foundations of digital finance.
- Notably, the 2023 U.S. banking crisis triggered a seismic shift in market sentiment when USDC depegged, propelling a reversal in market share trends favoring USDT over other stablecoins.
See: OpEd: Draft U.S. Bill on Stablecoins Highlight Differences with CBDCs
- USDT:
- With improved transparency regarding its reserves and a modest reliance on the U.S. banking system, USDT has experienced a dramatic increase in its market capitalization.
- Nonetheless, the market's sensitivity to changes in stablecoin pegs was evident when USDT decoupled from its peg, reinforcing the need for market participants to stay vigilant in the dynamic world of digital finance.
- 3Pool:
- Automated market maker (AMM) platforms like Curve Finance's 3Pool offer valuable insights into market sentiment in the digital economy. The sudden increase in Tether's share of the 3Pool, for instance, indicated a surge in USDT selling volumes, underscoring the importance of these platforms as barometers of market sentiment.
Continue to the full article --> here
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, 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
| | |
|---|---|---|
| | |
Stripe Expands Its Issuing Platform with a New Charge Card Program for Fintech Startups
Stripe | Release | Jun 1, 2023
Image: Stripe
Stripe launches a new charge card program on its Stripe Issuing platform.
- Stripe is set to transform the fintech space with its new charge card program for Stripe Issuing, allowing fintech startups and platforms to offer flexible credit options via expense cards.
- This innovation creates new revenue streams and empowers small businesses with reliable credit access.
- Since its launch in 2018, Stripe Issuing has seen substantial usage, facilitating the creation of over 100 million cards in the US, UK, and EU, and supporting half a million daily transactions.
- Stripe simplifies the process of building a charge card program by handling repayment collection, lending compliance, licensing requirements, and more.
- The charge card program offers core features like funds flow, network connections, printing, and integration APIs, all while efficiently managing necessary compliance, bank partnerships, and ledgering.
- The launch of Stripe's charge card program addresses the increasing concern of 77% of small-to-medium-sized businesses (SMBs) over access to financing, according to a recent survey. This move will enable software platforms to provide the necessary capital for their customer's growth.
See: OpenAI and Stripe Announce Partnership to Monetize OpenAI’s Flagship Products
- Stripe's innovative solution caters to the cash flow needs of platforms by allowing them to send funds after transaction settlements, reducing the need for large cash reserves.
- Companies like Ramp, Emburse, Karat, and Coast are already benefiting from the charge card program, which is currently in beta in the US and set to expand to the EU and UK.
View the original release --> here
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, 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
| | |
|---|---|---|
| | |
How to Create Your Own Payment Gateway in 2023
ScienceSoft | Stacy Dubovik, Financial Technology and Blockchain Researcher| May 31, 2023
Modern online payments go back to the 90s, when banks began introducing online banking services for the first time. PayPal followed shortly after, in 1998, and the adoption of digital payments has only accelerated since then. The rise of smartphones has led to the development of convenient mobile payment platforms like Apple Pay and Google Wallet, further extending the capability to make digital payments anywhere at any time. Today, billions in online transactions are handled each year using online payment gateways.
Online payment gateways are now a requirement for any modern payment system because payment gateways offer secure, seamless, and efficient payment processing. Customers have come to expect a streamlined payment system.
Within this article, we’ll explore the process of creating a custom payment gateway. This includes the basic concepts of payment gateways, how to go about defining your gateway requirements, choosing a technology stack, and finally, launching your custom payment portal.
Overview of Payment Gateways
A payment gateway is an application that facilitates quick and frictionless online payments. Transaction data is transmitted between merchants and payment processors using secure methods like encryption of sensitive data. Payment gateways perform essential transaction functions, like verifying cardholder information and settling any paid funds.
Custom payment gateways offer several key advantages, including explicit control over the infrastructure of payment processing, increased security posture, improved customer experience, and potentially new streams of revenue. Your business can differentiate itself from competitors with a payment portal by offering unique payment features.
Understanding the Payment Gateway System
Let’s start by covering payment gateway architecture and then get familiar with the two main types of payment gateways before we cover how to integrate your custom gateway once it's complete.
Payment Gateway Architecture
The architecture behind a payment gateway is generally composed of the following components:
- Merchant interface – with a merchant interface, your business can manage payments and handle transaction data.
- Payment processor interface – this interface is necessary to connect the payment gateway to card networks, banks, and other payment processors.
- Database – the database stores and manages all transaction data to ensure fidelity and security.
Types of Payment Gateway
Payment gateways can be separated into two main categories: hosted and integrated.
With hosted payment gateways, customers are redirected away from your business website to a separate payment page for payment processing. While integrated payment gateways keep the customer on the merchant’s website for a more seamless payment experience. When possible, an integrated payment gateway is the preferred choice.
Payment Gateway Integration Process
The work is not done when a payment gateway is built. The custom gateway needs to be integrated into existing systems. The merchant accounts and payment gateway will need to be configured. It’s critical that the gateway has been tested for seamless integration before launch, otherwise, there is a serious risk of unsecured or inaccurate transactions.
Features of a Payment Gateway
You can customize your new payment gateway to fit the needs of your business, but you’ll find that it’s a good idea to incorporate the following features in your own build:
- Fraud prevention – With advanced fraud detection tools, you can offer better protection against fraudulent transactions. These tools can include technologies like machine learning algorithms, device fingerprinting, and behavioral analysis.
- Chargeback management – Chargebacks occur when a customer disputes a transaction. The business must return the payment to the customer, thereby losing the revenue. Payment gateways can help manage chargebacks by providing dispute resolution mechanisms, chargeback notifications, and advanced fraud monitoring tools.
- Multi-currency support – To effectively manage international transactions, it's important to accommodate various currencies in your payment processing system. Payment gateways can convert currencies and handle foreign exchange rates, helping your business expand into new geographic regions and even go global.
- Recurring billing – add recurring billing features to handle automated payments for subscription services or other recurring payments. Customers will appreciate the simplicity and ease of the payment process, while your business can benefit from reduced administrative tasks and increased efficiency.
Steps to Create Your Own Payment Gateway
With the basic introduction to payment gateway architecture, types, and key components out of the way, we can shift gears to discuss how to create your own payment gateway for 2023. This process involves several steps, including defining your payment gateway requirements, choosing a technology stack, developing your payment gateway, testing and debugging, and obtaining necessary certifications and compliance.
Let’s explore each of these steps a bit further:
1. Define Requirements
Your business may have unique requirements or expectations that you’d like your custom payment portal to meet. Ask yourself what your business hopes to accomplish with this project. Use your answer to that question as a way to chart the types of payments you want to support and the relative payment volume you expect to handle. Consider what security features are a must-have and what features you’d like to offer customers and merchants.
2. Choose a Technology Stack
Before you can start building your custom portal, you need to decide on a technology stack that will be used to develop the payment software. A technology stack is a specific combination of development technologies, including programming languages and frameworks.
Carefully consider this choice because it will impact the scalability of the technology, security, development costs, and compatibility with other systems.
When making this decision, you should consider the following points:
- Consider which modern security measures you want to implement.
- Consider licensing fees, hardware costs, and miscellaneous development costs.
- Consider how the stack will integrate with existing systems, like accounting software, payment processing networks, and e-commerce platforms.
- Consider platform scalability and the ability to handle large transaction volumes.
3. Development
At this point, you’ve completed all the pre-work, and it is now time for developers to write the code for your payment gateway. You’ll want to design an easy-to-use interface, so users can navigate your portal with ease.
Developing a payment gateway requires a strategic approach that can balance functionality, security, scalability, and reliability. By creating a payment gateway tailored to your specific needs, you can open up new opportunities for revenue generation. For example, a custom payment gateway can enable you to offer unique payment options to customers, such as subscription-based billing or loyalty program rewards.
4. Testing and Debugging
The next step in the process is testing and debugging. A payment gateway that is not adequately tested can cause issues down the line, including security vulnerabilities, lost sales, and even damage to your brand reputation.
During testing, developers can simulate different payment scenarios and transaction volumes to identify any vulnerabilities or instabilities within the payment gateway. They should also test that the gateway can handle currencies, processing networks, and other requirements that you outlined in the first step.
5. Obtain Necessary Certifications and Compliance
The last step before you can launch your custom gateway is to obtain any necessary certifications for compliance with local regulations. Here are some of the certifications and regulations that you may need to adhere to:
- Payment Card Industry Data Security Standard (PCI DSS) Certification
- General Data Protection Regulation (GDPR)
- Anti-money laundering (AML)
- Know your customer (KYC)
Consider working with legal and regulatory experts to ensure there are no compliance irregularities. Make a plan to conduct frequent audits and assessments of your gateway. This helps provide assurance that your payment portal meets all necessary standards and regulations.
Get Started
Creating a payment gateway is a significant undertaking, but it's an investment that can provide several advantages for your business and customs. A custom payment gateway can help your business stand out from competitors and provide a unique selling point for customers. It can also increase security and protect against fraudulent transactions.
See: BoE Speech: 4 Areas at the Intersection of Payment Innovation, Tokenization, and Money
By leveraging the steps outlined in this article, your organization can start creating a payment gateway that aligns with your business needs while offering a superior user experience and competitive advantage. Consider collaborating with a reputable payment gateway provider that has experience in building tailored solutions.
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, 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
| | |
|---|---|---|
| | |
Understanding the Impact of Blockchain on Banking: Cross-Border Payments
OMFIF | May 22, 2023
In an evolving digital landscape, blockchain technology is poised to significantly enhance banking operations, particularly cross-border payments. Institutions are actively exploring potential applications, despite facing regulatory obstacles.
- This insight is presented in a report from OMFIF and CCBU, which explores the impact of blockchain and distributed ledger technology (DLT) on the business models of financial institutions. The study consults a range of experts from various sectors, such as fintech and blockchain industry, while reviewing regulatory and policy aspects of financial technology.
See: CB Insights report features over 50 sectors Blockchain is transforming (beyond just banking)
- Yet, regulation of blockchain in financial services remains a challenge, necessitating major advancements at both domestic and global levels.
- The shift from centralized to decentralized economic activities, spurred by blockchain and DLT, underlines the diverse regulatory and legal risks that could arise based on different use cases.
- Future trends in blockchain technology in banking point to payment solutions as the most likely dominant application.
- However, banks must confront hurdles like regulatory compliance and scalability.
- As blockchain evolves, it continues to present fresh features and opportunities, thereby promising a transformative impact on the banking sector.
Continue to the full article --> here
Download the 32 page PDF report --> now
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, 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
| | |
|---|---|---|
| | |
Visa and MasterCard Set to Decrease Average Interchange Fee to Under 1% in Canada
CBC News | Pete Evans | May 18, 2023
Image: Unsplash/Stephen Phillips - Hostreviews.co.uk
In a landmark agreement, Visa and MasterCard have consented to lower their interchange fees in Canada to below 1%.
- Interchange fees are paid by the merchant, but many have started to pass them on to consumers directly. These fees, previously a point of contention for merchants, allow credit card companies to retain a percentage of every transaction.
- This deal signifies an average in-store transaction interchange fee reduction to 0.95%, promising retailers at least $99 on a $100 purchase, as opposed to $97 in some instances.
- This agreement, representing a 27% average decrease in fees (for merchants), is projected to result in savings of around $1 billion for retailers over five years.
- It also aims to bring greater fairness to credit card transactions for small businesses, which traditionally have less negotiating power for lower rates than larger merchants.
- The reduction in fees is set to impact businesses with an annual Visa sales volume below $300,000 and those doing less than $175,000 from MasterCard.
See: Biden Proposes Cap on U.S. Credit Card Fees to Save Consumers $9 Billion
- What It Means:
- This change will affect Canadian consumers, as merchants have recently been given the right to pass on these fees directly to them. While consumers might face higher costs because of the fees, the overall lowering of interchange rates may alleviate some of this burden.
- This agreement is a significant shift in the credit card industry in Canada, bringing the country in line with many other jurisdictions such as the European Union, the United Kingdom, Israel, Australia, China, and Malaysia, that already cap interchange fees at less than 1%.
- It underscores a commitment by the government to create a fairer environment for small businesses and addresses concerns regarding the disproportionate power of major credit card companies.
- However, the implementation of the new fee structure is targeted for the fall of 2024, and organizations like the Canadian Federation of Independent Business (CFIB) are urging for an expedited timeline and broader inclusion of other card brands like American Express.
Continue to the full article --> here
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, 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
| | |
|---|---|---|
| | |
