Crypto payments: PayPal’s stablecoin ripple effect on markets

December 5, 2023 Coin Telegraph

Here’s why crypto companies need to focus on embedded finance

February 20, 2023 Coin Telegraph

Personalized offers, financing loans, insurance, seamless payment and preferred payment mode were key features that came out as top priorities for customers.

A new study by Decta highlighted the importance of embedded finance features in today’s fintech world. With online shopping and digital payments becoming a norm, the study pointed toward some key drivers for a seamless customer experience.

Embedded finance is a new type of software distribution that works with financial infrastructure providers to include financial services in the ecosystems of already-existing products. The most common embedded finance offerings include banking, lending, insurance, payments and branded credit cards.

According to the study, quick payments and the availability of a selected payment option are the most crucial elements for a satisfying online buying experience. The lack of a preferred payment option or friction during the checkout process is the main reason for a bad shopping experience, with nearly 49% of respondents stating they would probably stop shopping if they ran into these issues.

Personalized offers became one of the key features in embedded finance, which is valued and can be enhanced by focusing on different demographics. For example, 54% of Americans preferred integrated add-ons like financing and insurance. Generation X participants were most satisfied with personal offers, while Gen-Z and Baby Boomer participants gave the offers they got a lower rating.

Loyalty rewards, frictionless payments and same-page checkouts were some other preferred embedded features that got the respondents’ approval.

While crypto companies are slowly trying to integrate embedded finance features, be it crypto-based credit cards or loans, the study offers insights into customer targeting and acquisition. Crypto companies have been exploring loyalty rewards and helping mainstream firms incorporate these embedded finance services using blockchain.

The cryptocurrency ecosystem saw an influx of institutional investment during the last bull market. Some of the biggest fortune 500 companies and traditional hedge funds jumped on the crypto bandwagon, giving a glimpse of mainstream crypto adoption.

However, there is still a long way to go with the main focus on making crypto a daily driver for retail users. The study around embedded finance could help crypto companies take a cue from the mainstream and implement it with crypto-linked products to offer a better customer experience.

ePayments shutters as FCA Anti-Money Laundering regulations tighten

September 13, 2022 Coin Telegraph

AML

The electronic payment provider is permanently closing operations due to the inability to satisfactorily meet the standards of the FCA after suspending operations for three years.

The electronic payments provider ePayments is putting the final nail in the coffin of its operations. ePayments issued email notices to clients on Tuesday, stating that it is officially closing its business operations in light of local regulations.

The financial services provider was one of the largest electronic payment providers in the United Kingdom. However, almost three years ago, it was ordered to cease operations by the U.K.’s Financial Conduct Authority (FCA) due to alleged weaknesses in its “financial crime controls.”

At the time of the initial suspension, it was estimated that ePayments held $149 million, or 127.5 million Great British pounds, in customer funds, which were temporarily inaccessible.

After years of restructuring efforts, the company attributes the final closure to “extremely challenging and unprecedented global economic conditions,” years of halted operations and being unable to satisfactorily meet the FCA’s requirements.

It says funds are safe and encourages former customers to withdraw funds in eWallets and stand by for refund information. Users on Twitter responded to the update with a mixture of relief and frustration, with one user saying he had funds stuck in ePayments since 2020:

Thank god I transfer out my fund last 2 months ago as soon as you unblock the fund access. My fund was stuck since 2020.
— Hoe2be (@hoe2be2) September 13, 2022

While another tweeted to the company that his funds were still inaccessible.

This development comes as the U.K.’s financial regulators have been tightening the reins on the industry. The FCA recruited nearly 500 new employees over the last year in accordance with its new three-year strategy.

One of the positions filled included the newly created director of payments and digital assets which will oversee matters such as e-money, payment and crypto-asset markets. The position was filled by former director at the National Economic Crime Command.

While some regulators in the country believe the U.K. cannot afford to send mixed signals as to its stance on digital assets and payment services, it still appears to be the case.

The newly appointed finance minister, Kwasi Kwarteng, has not addressed the issue of crypto regulations and advertising watchdogs recently cracked down on crypto-related ad content on Instagram.

On the other hand, the economic secretary made a statement on Sept. 7 in which he said he wants to make the U.K. a crypto hub and top choice for innovators under the new prime minister.

Roxe Holding in talks for listing on Nasdaq via $3.6B SPAC deal

June 22, 2022 Coin Telegraph

Roxe Holding in talks for listing on Nasdaq via .6B SPAC deal

Coin Telegraph

The firm has entered an agreement with special purpose acquisition company Goldenstone Acquisition Ltd, through which it will pursue the listing.

Goldenstone Acquisition Ltd, a special-purpose acquisition firm (SPAC), has announced plans to go public with blockchain-based payments firm Roxe Holding Inc.

As per the Wednesday announcement, the SPAC has agreed to a $3.6 billion merger with the global blockchain payments firm, which will see Roxe listed on the Nasdaq under the ticker ROXE. Roxe is a global payments company that offers both business-to-business and consumer payments services, with a focus on blockchain technology.

According to a Reuters report, citing insider sources, no current stockholders of Roxe are planning to sell their stake after the merger. On Tuesday, Roxe stated that certain shareholders may qualify for earnouts if the listed share price is reached.

Blockchain Payments Firm Roxe to Go Public in $3.6B Merger. #SPAC deal will see #Roxe merge with Goldenstone once deal wraps up in Q1, 2023.

Roxe issues its own private tokens to facilitate money transfers and remittances across 113 countries pic.twitter.com/SfM3F2kJu6
— Crypto HINDUSTAN (@criptohindustan) June 22, 2022

The agreement comes into an unfavorable market environment, in which cryptocurrencies have plummeted in value and investors have largely abandoned special-purpose acquisition firms of this sort due to poor performance. The total market capitalization of cryptocurrencies dropped to less than $1 trillion, while Bitcoin (BTC) has now sunk to its lowest level since mid-2021.

The long slide in crypto has been driven by concerns about the unwinding of numerous major participants. Sentiment has deteriorated as a result of growing inflation and interest rates and weaker macroeconomic signals.

Furthermore, the agreement follows months after Goldenstone's IPO, which generated roughly $57.5 million in capital. These resources will be utilized to increase Roxe's financial reserves. It will also be CEO Haohan Xu's second significant listing agreement of the year, having earlier agreed to a $530 million SPAC deal with Apifiny Group.

After a surge through 2020 and 2021, the popularity of SPACs- a typical listing vehicle for several major crypto companies - is waning this year. Following several fraud allegations, the U.S. Securities and Exchange Commission (SEC) recently outlined stricter reporting standards for SPACs.

Singaporean fintech adds Bitcoin payments for merchants with BitPay partnership

April 7, 2022 Coin Telegraph

Bitcoin Payments

Crypto Accept allows online sellers to accept BTC and ETH before expanding to other digital assets next year.

Nium, a cross-border payments firm based in Singapore, has announced the launch of a new API-based solution that will allow businesses to start accepting cryptocurrency payments.

As per the announcement, the newly launched product is called Crypto Accept. It allows online sellers to accept Bitcoin (BTC) and Ethereum (ETH) before expanding to other digital assets in 2023. Payments are sent to internet merchants' accounts in U.S. dollars or other fiat currencies the next business day, allowing vendors to expand their market and enhance their online payment experiences while avoiding price volatility.

Nium partnered with crypto payments processor BitPay to launch the Crypto Accept feature. Consumers will choose their preferred cryptocurrency wallet and scan a QR code to complete the transaction. The service will verify that digital currency is available and settle the transaction in the merchant's chosen currency.

According to Joaquin Ayuso de Paul, the senior vice president and head of Nium Crypto, “Consumers hold more than $3 trillion in cryptocurrency and are looking for more places to spend this money online.”

Nium was founded in 2014 as Instarem and is located in Singapore. The payments company claims a global network of 130 million consumers. The company is licensed as a Money Services Business (MSB) in Singapore, Australia, Hong Kong, Malaysia, India, Canada, Europe and the United States.

Nium's latest move follows in the footsteps of other popular payments providers to accept cryptocurrency payments. As reported by Cointelegraph, PayMaya, a Philippines-based major fintech firm, recently launched a new cryptocurrency feature on its app that allows users to trade, purchase, and spend digital assets using their accounts.

PayPal-owned Venmo has a similar feature that allows users to purchase, store, and trade cryptocurrencies right on the app through a partnership with Paxos Trust Company. PayPal also began to accept Bitcoin as a means of payment for its millions of worldwide merchants last year in March.

E-Payments