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1/20
There is a $20B - $50B opportunity in FinTech/Crypto right now that no one has cracked in the last decade.
And, it's the same reason that Binance has done so poorly on an international expansion.
The way we use money is regional.
There is a $20B - $50B opportunity in FinTech/Crypto right now that no one has cracked in the last decade.
And, it's the same reason that Binance has done so poorly on an international expansion.
The way we use money is regional.
2/20
All over the world payment types, payment patterns, and shopping methods are fractured and different.
A few key examples:
All over the world payment types, payment patterns, and shopping methods are fractured and different.
A few key examples:
3/20
In Canada:
-We don't have ACH. We have EFT, its like ACH except faster and verified funds. The downside is it has fees and requires filing in paper forms to set up.
-Wires cost $10-$100 to send, take 3-4 days internationally and often have to be done in person.
In Canada:
-We don't have ACH. We have EFT, its like ACH except faster and verified funds. The downside is it has fees and requires filing in paper forms to set up.
-Wires cost $10-$100 to send, take 3-4 days internationally and often have to be done in person.
4/20
-We also have interac e-Transfer which lets us send money to anyone by email address for $1.
-We use credit cards over debit cards.
-Accepting a USD wire to a CAD account is a huge fee
The cumbersome nature of wires here makes them a terrible on-ramp for crypto.
-We also have interac e-Transfer which lets us send money to anyone by email address for $1.
-We use credit cards over debit cards.
-Accepting a USD wire to a CAD account is a huge fee
The cumbersome nature of wires here makes them a terrible on-ramp for crypto.
5/20
And due to our 'small' population major exchanges overlook this market, which means regional slippage and fees for CAD pairs is pretty brutal.
But if we want to cash out we need to open up a USD account or take the hit on CAD markets.
And due to our 'small' population major exchanges overlook this market, which means regional slippage and fees for CAD pairs is pretty brutal.
But if we want to cash out we need to open up a USD account or take the hit on CAD markets.
6/20
In India:
Banking infrastructure is even more fractured and private businesses really leapfrogged banks.
-Lots of e-Commerce stores accept cash on-delivery.
-Digital wallets like PayTM are common place
-OxiCash and ITZCard leverage mobile preloading payments.
In India:
Banking infrastructure is even more fractured and private businesses really leapfrogged banks.
-Lots of e-Commerce stores accept cash on-delivery.
-Digital wallets like PayTM are common place
-OxiCash and ITZCard leverage mobile preloading payments.
7/20
For crypto "Net Banking" is a popular deposit method but carries a hefty ~2% fee.
Instant bank deposits are an option but require tons of paperwork and only work with major banks.
So most people use "UPI" the "Universal Payment Interface"
For crypto "Net Banking" is a popular deposit method but carries a hefty ~2% fee.
Instant bank deposits are an option but require tons of paperwork and only work with major banks.
So most people use "UPI" the "Universal Payment Interface"
8/20
It's an SDK that plugs into apps, Amazon Pay, Paytm, Google Pay, Jio Pay and WhatsApp Pay all support it.
So most funding of Indian deposits come from these apps.
It's an SDK that plugs into apps, Amazon Pay, Paytm, Google Pay, Jio Pay and WhatsApp Pay all support it.
So most funding of Indian deposits come from these apps.
9/20
But, one interesting thing about the Indian market is OTC.
It's the same in Pakistan, Nigeria and other mobile-first developing nations. People love to shop using WhatsApp.
(That's why store front apps like https://app.bikayi.com/ compete with Shopify and Amazon in India)
But, one interesting thing about the Indian market is OTC.
It's the same in Pakistan, Nigeria and other mobile-first developing nations. People love to shop using WhatsApp.
(That's why store front apps like https://app.bikayi.com/ compete with Shopify and Amazon in India)
10/20
The OTC market in India, that is conducted over chat transfers is huge.
Because that's how people are comfortable shopping.
While I've not seen someone try and aggregate that well in India, https://buycoins.africa is doing it for Nigeria.
The OTC market in India, that is conducted over chat transfers is huge.
Because that's how people are comfortable shopping.
While I've not seen someone try and aggregate that well in India, https://buycoins.africa is doing it for Nigeria.
11/20
In Australia, people commonly use BillPay at their local convenience store or post office (although digital variants are more common now)
In Japan, Conbini payments take place in cash at convenience stores as well
(Both payment types which lower KYC burden)
In Australia, people commonly use BillPay at their local convenience store or post office (although digital variants are more common now)
In Japan, Conbini payments take place in cash at convenience stores as well
(Both payment types which lower KYC burden)
12/20
As you go around the world, you realize that people like to make payments and deposits in very different methods.
And it's why we see so many small regional on/offramp crypto exchanges that are extremely popular.
As you go around the world, you realize that people like to make payments and deposits in very different methods.
And it's why we see so many small regional on/offramp crypto exchanges that are extremely popular.
13/20
Coinbase only supports PayPal withdrawals in Canada, and doesn't allow the selling of crypto, just the buying.
Kraken will not send a USD wire to a Canadian based USD account it must be a CAD account where their slippage is insane.
Coinbase only supports PayPal withdrawals in Canada, and doesn't allow the selling of crypto, just the buying.
Kraken will not send a USD wire to a Canadian based USD account it must be a CAD account where their slippage is insane.
14/20
Binance has been a flop in dealing with regional fiat.
They've pushed to close Binance Jersey and Binance South Africa - and their purchasing of WazirX shifted to only USDT trading no INR, and Binance Australia has horrible slippage.
Binance has been a flop in dealing with regional fiat.
They've pushed to close Binance Jersey and Binance South Africa - and their purchasing of WazirX shifted to only USDT trading no INR, and Binance Australia has horrible slippage.
15/20
The big players have focused on the largest addressable markets, and the small players lack the expertise in managing multiple payment funnels and pushing liquidity in diverse markets (which could be very profitable for FX arbitrage)
The big players have focused on the largest addressable markets, and the small players lack the expertise in managing multiple payment funnels and pushing liquidity in diverse markets (which could be very profitable for FX arbitrage)
16/20
There is room for an exchange (or aggregator exchange) that either pursues diverse payment method on/off ramps regionally (not just supporting international wires)
There is room for an exchange (or aggregator exchange) that either pursues diverse payment method on/off ramps regionally (not just supporting international wires)
17/20
Or, someone to act as an intermediary, taking all those regional payment methods and forwarding a tokenized proof of deposit post fee to the exchanges.
(Like a regional B2C version of Tether if it wasn't corrupt, sketchy and had a good API)
Or, someone to act as an intermediary, taking all those regional payment methods and forwarding a tokenized proof of deposit post fee to the exchanges.
(Like a regional B2C version of Tether if it wasn't corrupt, sketchy and had a good API)
18/20
If you are in a tier 1 payments country (US/UK) you likely think the accessibility of crypto is great.
It's not.
Trillions of dollars from fee-agnostic retail investors sit on the sidelines because current products and infrastructures don't meet their needs.
If you are in a tier 1 payments country (US/UK) you likely think the accessibility of crypto is great.
It's not.
Trillions of dollars from fee-agnostic retail investors sit on the sidelines because current products and infrastructures don't meet their needs.
19/20
If you can build a product that leverages regional insights to customize product and payment infrastructure you can capture billions in volume.
If you can build a product that leverages regional insights to customize product and payment infrastructure you can capture billions in volume.
20/20
It's not an easy task, it requires a strong team, broad international insights, or aggressive M&A in finding the right regional solutions to absorb.
But, it's one of the few ways another exchange in this market will compete with Coinbase level valuations.
It's not an easy task, it requires a strong team, broad international insights, or aggressive M&A in finding the right regional solutions to absorb.
But, it's one of the few ways another exchange in this market will compete with Coinbase level valuations.
