Paycer at OMR: Banking as a service; your launchpad to the Metaverse
One of the highlights of the OMR marketing Festival for Paycer was taking part in “Banking as a service: your launchpad into the Metaverse” Masterclass which was presented by Leonard Coen and Alan Kennedy from Solarisbank.
In this article we would love to provide a summary of the gathered insights for our community.
The main topic of the Masterclass revolved around the upcoming innovations and how to become a pioneer in the next wave or how to further expand an existing innovation. The concrete value of the existing digital asset use cases was analysed and the audience was familiarised with how third party companies can facilitate newcomers success into this ecosystem by leveraging the modular setup and to be their launchpad into the Metaverse. Let’s go through the discussed topics in the Masterclass:
Everyone in the crypto industry is aware of the news regarding Terra. There were two problems:
1. Value was based on an uncollateralized stablecoin (UST), which could be exploitet.
2. The treasury was backed mainly by a correlated asset (BTC).
These two problems lead to two events:
- UST was attackable; and it was attacked.
- Selling the treasury to defend the attack crashed overall market sentiment and subsequently $LUNA.
The moral of this story is that anything that can be attacked will be attacked and DeFi must focus on security & sustainability over yield.
Web 3.0 refers to the internet’s movement from central platforms to decentral networks. The value in web 2.0 was captured by management but the value in web 3.0 is captured by the community. Web 2.0 is centralised, based on central cloud services and platforms and the data can be read and written by the users. While web 3.0 is decentralised, the infrastructure is blockchain, deals with networks and the data can be read, written and owned by the community.
In Decentralised Finance, financial services will be executed by code instead of institutions. It has a great importance in the market because it enables anyone to be a lender, borrower, LP (liquidity pool) provider or trader. And the fees are distributed to all the participants. There is a money pool in decentralised lending and a liquidity pool in decentralised exchange.
In DeFi-enabled savings accounts, the customer earns 7% interest rate. The whole idea has a positive effect on the market since abstracting complexity leads to greater DeFi adoption.
DAO is the abbreviation of decentralized autonomous organization. DAO is a member owned community, where rules are made by the community instead of the CEOs. Anyone can buy and hold a governance token and democratically govern the DAO. They are already changing financial services, social structures and investing. An example of a democratic Exchange would be UniSwap and an example of democratic investing would be the ConstitutionDAO. They actually didn’t win the constitution but they showed the world the power of the DAOs.
Financial needs must be taken care of regardless of the place and time. Embedded Finance is all about customer’s terms; It democratises the provision of financial services by shifting the power to the retail users. Banking as a service is the game changer which will enable embedded finance. BaaS providers enable brands to embed compliant financial services into their CX by offering financial products and processes for easy integration through APIs and under full regulatory compliance, including banking license.
Solarisbank can provide financial services products, take care of the core systems and processes as well as the banking. Banking products are being integrated into non-financial product value chains resulting in embedded finance.
Samsung & Solarisbank
Samsung Pay and Solaris Bank’s partnership was an example of a big brand embedding financial services. Here are some of the positive outcomes:
- fully digital identification process in as little as 1 minute
- virtual visa debit card that is settled against a bank account of the user’s choice
- finance & credit products embedded into Samsung’s ecosystem
- access to special Samsung deals and promotions directly in the app
Digital assets have achieved near mass adoption. First fuelled by crypto-currencies & ICOs, then Decentralized Finance (DeFi), and then further by Non-Fungible Tokens (NFTs).
Complex crypto services are tuned into commodity products. Crypto as a service abstracts the complexity of buying, holding, staking and lending crypto assets away from the application layer.
Commoditising crypto services will help investors of all kind to build innovative crypto based business models. Solaris provides the crypto backbone and partners can easily innovate by picking and choosing the building blocks they need.
Crypto Embedded Gaming
Game developer embed real world economic value into their games through crypto. NFTs represent ownership of in-game assets payable with in-game tokens. Possible commodity products would be crypto custody, crypto brokerage and money transfer.
Embedded Finance can provide self custody and simplicity for the customers from the gaming industry. In this way, the game developers focus on the gaming experience instead of worrying about the other aspects.
A marketplace where participants can trade tokens and NFTs representing digital ownership rights of a physical asset (such as art or real estate).
The platform provides an order matching engine to maximise tradability, while trades are settled instantly. Commodity products used are crypto custody and money transfer.
Embedded finance can prepare the infrastructure to bridge the centralised and decentralised world. We are still in the early stages and there is a great potential for entrepreneurs to join and make magic happen. Embedded Finance will take care of the boring stuff while you can do the exciting stuff and create value in metaverse using the services.
Taking part in this Masterclass was one of the highlights of the OMR Marketing Festival for our team; since it was related to the services that we offer and the industry in which we are active in. We’re looking forward to join more events and conferences related to embedded finance to gain more insights and to expand our realm of network.
Paycer’s goal is to aggregate DeFi investments multi-chain and make them available to users without the need for their own wallet nor the expertise. This should allow anyone to generate a passive income in a world where banks no longer pay interest. Hence the Paycer team is developing a bridge protocol for DeFi and TradFi to combine the best of both worlds and make it available for retail clients #CeDeFi. Apart from the technical matters and the creation of a super easy to use final product. The goal is also to create a regulatory framework that allows the legal operation of a DeFi platform within the EU first and subsequently in other regions.
Currently, a DeFi platform is already available on paycer.finance on which Paycer tokens PCR can be claimed and staked. More features will go live soon. At the moment on Polygon but other blockchains will be integrated in the near future. Paycer is also working on a banking partnership to be able to combine DeFi with a traditional bank account. In addition to the development of the DeFi platform, the development of the final consumer product is also in progress.
Be sure to follow Paycer on social media for all the latest updates on product development. We have further exciting announcements to share very soon.