In the ever expanding world of cryptocurrencies, the possibilities and opportunities are phenomenal. Ever since the advent of Bitcoin, the world has been an astonished witness to the astounding growth of the crypto industry. The blockchain technology with its magnitude of robust features such as transparency, security, reliability and fast transaction speeds to name a few have elevated the crypto trading to a whole new level. (more…)
Uris is a decentralized ecosystem. It is a non-profit organization that has been founded by a blend of venture capitalists, entrepreneurs and individual investors sharing the same belief that company ownership is the basis of development in emerging markets. It serves as one of the best platforms for projects and startups that are in requirement of no cost funds. Creators and entrepreneurs possessing excellent ideas and innovations in the present market trends can use the Uris platform for achieving their complete potential. Uris gives them the scope of sharing their innovation and technology with others. (more…)
Investing money is something that can be very rewarding if you make the right decisions. However, it can also be very risky and daunting, particularly for those that have little real experience when it comes to investments. Anyone that is thinking of investing should seek advice if they have any doubt or are uncertain about the ideal long term investments or the best short term investments for them. (more…)
Michael Gastauer, CEO of WB21 digital bank, is facing a lawsuit for selling $165 million worth of fraudulent microcap stocks.
On October 2nd, the US Securities and Exchange Commission (SEC) revealed a lawsuit against Michael Gastauer and Roger Knox for “intentionally defrauding investors by secretly dumping large quantities of stock.”
Throughout history, the world has undergone multiple stages of economic and technological evolutions and our world is at the cusp of another revolution just around the corner. The prevailing generation is well versed with the growth and expansion of internet and technologies alike. (more…)
Planning for children’s college expenses can be very stressful. Not only do we not always know which college they will go to, but the costs of college have been increasing for over 20 years. From 2003 through the year 2013, the cost of a college education nearly doubled. (more…)
One of the hottest niches in tech right now is payments. If it’s big enough for Google, Apple and Paypal to pursue – it’s BIG. If the Bitcoin, a currency built specifically for instant (de-centralized) online transactions, increase in value 100-fold over a period of several years, it is another very solid indication the world is moving towards digitized transactions. In fact more than 50% of all transactions taking place in the USA are cash-free.
Building a money transfer application has more than a few hurdles. Many have tried and failed, and the others are sitting on the fence waiting for the industry to boom to make substantial profits. The top money transfer apps in 2018 are composed of large companies who have been in the domain of online payments from way before mobile apps even existed.
The difficulties of creating money transfer apps
The biggest hurdle in creating a money transfer app is definitely NOT the programming you need to put in, nor the UI, no anything else you would traditionally say is the sticking point of creating app. It’s regulation.
When you handle people’s money, you need to be carefully inspected and show beyond any reasonable doubt you are eligible to be in this position. It goes way further than just the regulator, by the way – banks are very reluctant to deal with you, and so us other providers. So, you need to be approved by a regulator (or SEVERAL regulators if you are going to accept people from different regions in the world), be in excellent relations with at least one bank, and prove one or more tax authorities people are not using your platform to evade taxation.
All of the above is far more complex than it sounds and it will require serious resources to accommodate all of the above, and particular as a startup.
If you are going to handle people money you need a line of credit to enable real-time transactions. That means that you need to cover the deficiency in cash inside your system between the time that someone pays, and until you actually receive the money. That is a significant issue and you need to have significant reserve pools just in any case. What happens if your security is breached and some money is stolen off the system? What happens if you have a an unusually high number of feedbacks in one certain month? You need a few millions of dollars to be sitting aside to facilitate a real money transfer network.
Although this aspect only comes third on our list, to compete in the payment business you have to come up with a very slick app that appears trustworthy, maintains the highest level of security (super important), and is easy to use as your target audience is very broad. In essence, you need to out-do companies which have been in the market since before the 2000 high-tech bubble like Paypal. It is obtainable, but it will require high level of expertise and yet again – a sizeable investment.
Foreign exchange – liquidity and capability
If you intend to accept clients from overseas who are paying via multiple currency, you need to be able to exchange foreign exchange through your application. This requires connecting with a source of liquidity provider who is also able to facilitate currency exchange, and a lot of additional hurdles when it comes to product development and regulation. Cross border transfers tend to be more sensitive and difficult to execute.
Finding partners / Marketing
Payment applications is a very saturated market, and thus, you will need to be able to compete through not only better offering than your competitors, but in fact have powerful business partners who are able to integrate your payment app into their systems. Apple and Google don’t need such a partner, being of such immense size and influence, but you would need them.
Not making money
When you go into an overly competitive market which is currently focused on acquisition and not profit, you would not be able to compete if your prices would be higher than your competitors. Venmo is practically free when it comes to transfers in the U.S, similarly Google Pay and Apple Pay, and cross-border applications like Transferwise’s charge as little as 0.5% off each transaction, you are not going to be making money in the short and medium term. This is a long term game.
Looking at all the hurdles expected, you should be entering the payment app industry only if you have a very solid foundation. If you plan on making your mark with your team of 4 out-of-college programmers working in your grandma’s basement, you should at softer and more niche industries.
Over the past year, the U.S. Securities and Exchange Commission has ramped up its scrutiny of cryptocurrencies and other digital token offerings. On Sept. 11, 2018, the SEC escalated its crackdown when it announced a pair of settled enforcement actions against non-issuers participating in the offer and sale of cryptocurrencies it deemed unregistered securities. As with prior cryptocurrency cases, the SEC charged the defendants with offering or selling securities without filing a registration statement or having a valid exemption from registration. However, these cases mark the SEC’s first cryptocurrency enforcement actions against non-issuers for failing to register as broker-dealers and investment companies. As such, they highlight the SEC’s continuing efforts to bring the purchase and sale of cryptocurrencies within a regulated framework, including by targeting third parties who facilitate the purchase and sale of such assets.
On September 20, second day of Consensus Singapore, Jeremy Berger (Life.SREDA VC Portfolio Director, COO Arival Bank) gave a speech on the digital banking revolution at a meetup dedicated to the future of financial markets.
The digital revolution has seen a huge number of advantages for every sector and industry in recent years. Businesses have been given the ability to engage more easily and effectively with their customers than ever before. While interaction has increased significantly, a new level of disconnect between the business and the customer is also very apparent. Instead of heading to a physical store, customers are now faced with businesses that hide behind a screen. (more…)
If Financial Technology is at the forefront of disrupting traditional banking and financial systems, then it could be argued that Blockchain is at the forefront of FinTech. (more…)