YODL - Enabling Fully On-chain Payments

all right so yeah short story I've been working in the payment industry for 10 plus years I helped build a mobile payment app SL scheme uh from zero into a series B company you can now use the app to pay at the major supermarkets in Austria and Germany including at the European football club now eventually I decided to build my own payment Network a new way of paying completely based on crypto rails and replacing the traditional banking settlement with a crypto-based settlement but before I started I had one question what problem are we really solving and what's so wrong with traditional payment after all it works perfectly fine you can pay worldwide with your app with your credit card in any currency and so on you can't really improve the ux second most people outside of this room don't really care that much about permissionless payments decentralized blockchains and so on so that's not a reason for them to switch either there is one thing however uh it's a the elephant in the room is the cost it works but it's incredibly expensive it's a $2.2 trillion per year that the payment industry is raking in in the form of fees to feed thems that puts it Fe firmly in the list of the top 10 countries by GDP and if you drill it down on a per person level every person in the world is paying $300 per year to be able to pay noncash as a tax which translates to a 3% hidden payment tax you don't even realize you're paying because it's just sied out by the industry uh during every payment now the problem is as a business as a person you can't escape that trap if you want to accept non-cash payments you have to go through the payment industry now in crypto it's the first time you actually can escape that thing because for the first time you can accept non-cash payments without the need of an intermediary a bank whatsoever you can simply send your dollars from your wallet into the wallet of the merchants directly the problem with this approach is simply nobody accepts it you can't pay anybody so therefore it's tempting for us to just issue credit cards for all the crypto holders they top it up with their crypto coins whatever to be able to pay with the card in the Visa Network now the problem I see with that is that it doesn't really solve the big problem in the end the moment you're tapping your card the money is taken out of the crypto economy and going through the dark areas of the payment industry where there's Banks hiding behind every corner trying to take a cut from that payment however experience is great I use it myself I've got Theos this pay card great but every time I pay a little part of me dies because I've just off ramped money from the crypto economy into the traditional uh Finance systems so we are not helping the industry at all what I like however is how seamless it works it doesn't matter what currency the merchant has what country he is in what bank he's using the moment I see the logo of Visa I know I can pay and that's exactly the experience with trying to replicate with yodel so when we set out to start the yodel club uh we set up a few rules two rules rule number one is to not build yet another token yet another Chain Bridge wallet tax offramp and so on but rather take the existing ones and make them interoperable and usable in a payment context rule number two is to embrace the options at this conference we've seen there's so many ways you can handle stable coins uh and you should be able to choose how we would like to keep our assets and the way we do it if you look look at a payment there's two sides there's the receiver and we'll let them choose what however he wants to get paid on the other side the sender itself should also be able to choose how he pays the bill uh the way it works with you in the end we've got a tap it works similar like Unis swap it connects to a Smart contract but you use the tap in the front end to create a y link you simply add your existing ens domain subdomain web 3 domain what ever you have you can even use the wallet address you get a link that you can send in a message or scan with a QR code to configure your payment preferences you can do for in many ways for instance using the URL itself in this case burger Bob is in the states and he's invoicing in US dollar and prefers to settle the Tok his money to always receive a usdc coin in this case I enter $5 and Bob will eventually receive 5 us worth of usdc the next step we completely decouple the invoicing the local currencies from the settlement token so you can invoice Turkish ler exactly the same way and choose how you'd like the payment to be settled either in usdc t any stable coin really any erc20 token really that has an onchain price feed we do the conversion onchain using these price price feeds so nobody can cheat now is this uh from the sender part the sender he doesn't have to pay in the token in the currency that the receiver expect if he has it it's fine if not he can pay with any other token that he has in his wallet at y we integrate an automatic swap from whatever the user uses to pay into exactly what the receiver expects we aggregate the liquidity from Unis swaps and curves to make that happen uh if you don't have a token on that specific chain again rule number one of you all don't build your own Bridge we integrate the existing one and adapt as new technologies emerge such as ERC 76083 which will hopefully bring great pability to our world now the next step is how do I actually get the money into my bank same story we're not actually doing our own offramp but we are building the existing off-ramps and make them better 10% of the people already have an exchange account but they struggle to actually deposit money there because it's very complicated they worry about sending the wrong token on the wrong chain we simply configure automatic payment links for these exchanges so a person just has to add their address to be able to re receive the money the correct way you can't make any mistakes the same which we believe will emerge very quickly in the next generation of off ramps like beam cash monium where you get sign up kyc configure your iban then you get an address and you can send money there for us it's just another y link you can use it to pay in the same interface you use to pay your buddies uh next up e-commerce that's how we all started our case supports the full e-commerce flows you can integrate it into your web shop it works exactly the same as any crypto payment processor in the web shop you're redirected to a checkout page the big benefit of our site is it's comp completely non-custodial decentralized permissionless we never hold your assets the money goes straight in into your wallet with that you're not actually a payment processor you can simply start accepting money in your web shop without having to sign up kyc or anything we just a technology and not regulated by Common payment regulations with that you can integrate it directly as a merchant into your web shop or go through a payment processor if they integrate that which we hope hope for them with just interoperability solution with these e-commerce transactions that's how we can make the money we charge a very low 0.2% yal fee for every payment which is about 10 to 20 times less than what you will pay accepting credit cards uh we also have a platform support so if you have nft or ticketing platform and charging invoicing money you can direct ly charged the fee similar to stripe connect uh with every payment so if that's interesting please contact us we're building that out as we speak uh I skip that but the most the thing that I'm most excited about is that you're building a platform we provide hooks before and after the payment on and offchain so you can customize the payment according to your needs in some countries you might have to check against an ofac blacklist which you can do with an onchain before payment hook that restricts payment that coming from a uh that only allow normal wallets to pay you can encode any regulatory checks using the smart contract uh checks as an onchain hook you can also as a merchant provide discounts Lottery wins uh loyalty systems and and crucially also you can have hooks offchain so you can run an offchain kyc process with some zero knowledge uh crazy technology which is way above my pay grade and integrate all kind of additional uh tricks into that now finally if you want to try it out there's a gentleman called Michael in Thailand who's rescuing Street dogs uh and built a sanary if you want to try it out you can scan the QR code and make a y payment to help a fellow dog out other than that we have a booth uh downstairs if you have any questions