Modulr, a Payments as a Service API Platform for digital businesses, has shared insights on how Fintech firms can “harness the power” of cryptocurrency.
Gavin Waddell from Modulr writes in a blog post that digital currencies have “shaken up” the financial world. Innovation is “the hallmark of cryptocurrencies, and the industry is evolving fast,” Waddell claims.
He adds that in the wake of Brexit, the United Kingdom has an opportunity “to be more progressive for crypto businesses and become a hub for thriving UK Fintechs.”
Waddell further notes that decentralized finance (DeFi) innovations such as yield farming, liquidity mining, and crypto lending offer new ways to “explore what this industry has to offer.” He also mentions that “as a result, crypto enthusiasts and the newly emerged ‘crypto-curious’ look for integrated platforms that enable them to dabble in crypto investments and trading.”
He points out that debit and credit cards might have been the first step towards digitizing cash and now that digital money is “a normal part of everyday life,” it is “natural to look for the next iteration of digital money. Enter crypto.”
“Several leading payment providers have already tapped into the cryptocurrency market. Additionally, Visa recently outlined their vision for digital currency, including partnering with several blockchain companies and working with licensed crypto platforms like Coinbase and Fold. Their vision is to create a bridge between cryptocurrencies and Visa’s 61 million global merchants.”
He further noted that PayPal has now entered the crypto space. Soon, the payment giant’s 265 million+ users will have the option to purchase Bitcoin through the Venmo mobile payment app, Waddell reveals.
He adds that this is “only the dawn” of the Fintech and cryptocurrency “relationship.”
Waddell pointed out that the Financial Conduct Authority (FCA) will permit EU financial services firms to continue to trade in the United Kingdom “under a temporary permissions regime.” While the European Union has not yet “reciprocated” this move, Brexit has “the potential to mark a new beginning for the British crypto and DeFi industry,” Waddell claims.
“While Brexit brings considerable uncertainty to the UK financial industry, it also presents an opportunity for the British fintech community to create new innovation-friendly policies and become leaders of the crypto space. Across the channel, the EU issued its directive on Markets in Crypto-assets (MiCA) in September 2020, stating that member countries administering cryptocurrency or providing crypto-related services will be regulated. This directive is still in its infancy, and full implementation could take between two and four years.”
Waddell also mentioned that there’s a lot that may change in the fast-evolving world of crypto-assets in that timeframe, and his team is “intrigued to see how the market will develop in the near future.”
Waddell also notes that by teaming up with the “right” payments platform, you can make crypto “more accessible to your clients.” Companies such as Modulr “empower you to innovate, challenge and differentiate your business by rapidly deploying new products and embedding other services, such as cards, to make your crypto offering truly competitive,” Waddell added.
He also pointed out that you can drive more engagement and expand your service by embedding certain features such as card issuing into your product offering. He explained that a single integration with Modulr “gives you access to eMoney accounts and payment schemes, as well as features such as card issuing.” And, new functionalities are “released as the market moves to save your development team time while maintaining your competitive edge,” Waddell noted.
To learn more about what Modulr has to offer, check here.