Gnosis Pay - Banking 3.0: Powering Global Payments with Stablecoins

hello um I'm super excited to be here it's my first time at the stable Summit I've heard really really good things from the last few auditions um about myself um I'm part of the early team at nois pay and I lead growth right now and today we want to speak about something that is very close to our hearts which is borderless and global banking um we want to bridge Ry um to web three in away um where we bring the powers of both um in one to make global banking simpler cheaper faster efficient um a lot of buzzwords something we've been saying in web 3 since a lot of time um but we want to share with you how we think we're going to go about it um let's talk about how banking has evolved in the last few decades we have like banking 1.0 this is say about 1990s the rise of Internet when the banks used to like the local brick and modor banks used internet to kind of increase their distribution to reach more customers than just their local surroundings then 2010s we had the mobile neobanks which really really improved the user experience um built new products made it really easy for people to interact with banks and and today if I ask most people in the west what is a bank for you it's probably a mobile app right um so these fintech started building on top of the Legacy banking infrastructure and today we are doing banking 3.0 um which is the ownership era as Chris tixon likes to call it um where the technology has matured in a way um where users or rather we and truly separate Bank ERS from banking the users can truly own their banking experience what are some of the challenges that the global retail Banks face today the finex or the large brick-and mot banks that you know one is they don't give you the optionality to custody or not custody when you sign up with someone you let them custody your funds and number two which is a massive problem which all of us know is payments and remittance es which is what stable coins are kind of designed to solve in some sense remittances especially crossb are slow and inefficient and costly and to just talk about how dire this problem is how many of you all know in this room um what cobal is anyone yeah anyone wants to say what is do you want system in most global exactly um just for everyone like I mean cobal um is a programming language built in 1959 I think for the US Department of Defense and then the banks and financial like the finance essentially adopted it to run Global transactions today we have payments that you can make with your Smartwatch or you have Apple pay and Google pay really sophisticated Technologies making lives easy for users interacting with cobal interacting with Mainframe systems interacting with swift interacting with base 1 base two all of these between 30 and 60 year old Technologies or standards it leads to a lot of complexity it leads to a lot of inefficiency and costs so what do we want to do we have the Tad five World which has some good things and some bad things we have the web 3 world which has some good things and bad things how do we bring both of these together how do we bring the ability or the optionality to custody how do we make payments and banking truly Global how do we make it composable where people can actually build on top of the stuff that most people have built enabling true permission less Innovation and how do we make a better ux and give better support to people um to explain how we want to do this let's talk about a regular checkings account or current account that you know what is it really right it's an account that holds your funds you put money in using a regular bank transfer you put money out using a bank transfer if you're in Europe um you're probably using sepa instant to do that the payment rails and the other thing you can do to spend your money is use a debit card or a credit card what we want to do is similar but have the core banking infrastructure on chain and not on those 60-year-old Legacy system we want to build an account that is built on top of safe which is a smart contract um wallet infrastructure with stable coins and um which where we can do like kyc kyt everything on chain and we have three capabilities number one card capabilities attached to this onchain wallet using a Visa card or a like which is multicurrency where you can use to withdraw your cash where you can use Apple pay Google pay number two we have account capabilities we attach an international banking account number so what that means is you can now do a bank transfer to your wallet and bank transfer out to your wallet or to anyone else that you know if you have your bank account number also probably do local direct debits or whatever other schemes there are um in your jurisdiction and we have obviously the onchain capabilities where you can fund your account using an onchain transfer and fund your account outside like out using an onchain transfer this is banking 3.0 your old bank account with the power of web 3 or your onchain crypto wallet with bank account capabilities that's how we envision this one key component to this is connecting onchain accounts to local payment schemes and this is something that hasn't been done before and and it's a massive Challenge and you need to go step by step the way we see this is where you have an onchain base and you have a bridge towards the offchain world which is the card maybe a Visa or a MasterCard and then the local rails for each of the countries or territories for example in EA it's the sepa instant rails in the UK it's the faster payment rails and similarly we have Brazil us and all the other countries in the world that's the way we're thinking um where are we right now um we have our first self custody account live um your first self custody checkings account in a way or a current account you can spend your onchain assets using a debit card um and we also support stable coins I don't know how many you know about GBP and Euro e and we'll soon be supporting usdc as well um we'll also have I bands attached to your web3 account so you can do Bank transfers in and out and we have unparalleled FX rates right now so you can spend your card um use your card anywhere in the world and we'd most likely have one of the best FX rates what's next for us especially with stable coins we're exploring with Visa the ability to settle directly um like with usdc and this is cool this is novel but the impli ation for this are huge um for the people that are accustomed to the regular authorization clearing and settlement cycle in card payments you know that it's a complex process it takes two to 5 days um if you're buying a coffee today um the merchant the coffee shop owner gets their money say 5S after probably 2 to 5 days that's how slow the process is with on Jan settlements we can essentially enable instant availability of funds right after payment is made on chain send it to visa and then they can figure out how they want to pay the merchants this obviously requires some changing in the clearing mechanism from visa and also using gas optimized chains for settlement right now um Visa has this live on ethereum um but we'll be working more to kind of make this a reality and what this means is the impact of this could be that the amount of collateral that's required for a card issuer to store with Visa generally goes between 2 to 5 days and if you have a product with users at scale this could amount to millions millions of dollars every day that are stuck as collateral if we can remove that we have a lot of efficiency gains we reduce costs and in turn this is users benefiting from it so that's something we're really excited about and the other thing is cash back and reward that's something we're launching with a product something very cool coming up keep your eyes pale I'll probably not reveal a lot of it today um in terms of where you can find us right now we're live in EA UK and Switzerland we're going to announce or going to be live soon in 10 new countries Brazil Argentina Mexico Australia and a bunch more um and I don't know how many of you all have followed our journey last year at ECC we announced the launch or the concept of nosis paid to the world um this year for the first time ever we're launching customized cards and we have the EC customized cards um so if you're not a user or if you want a cool card scan this QR code or just reach out to one of us we can give you something on the spot um and yeah if you have any questions find me um we're super excited to kind of use stable coin and the power of web 3 to change global banking thank you so much for your time name [Applause]