DAPPCON 2025: Enabling Next Gen Banking - Rafa

Transcript

Awesome. So, uh, good afternoon everyone. Um, hope you have been enjoying this past few days of DevCon. So, I'm going to be talking here about how NOSA enabling what we have been calling nextg banking. But in order to understand like how we're enabling that, uh, let's first understand like why we're talking about nextgen banking and what does that actually mean, right? So, I think this just went too fast.

So, what are the problems we're trying to address here? So technology has become global and we all have been using on our day-to-day lives things like Spotify for listen to music, Netflix for entertainment overall, Uber for transportation, Tik Tok, Facebook, Instagram, you name it for social media and there are like all global brand brands global experiences. So if I move from Brazil to Germany to Portugal to Switzerland to the UK, I pretty much enjoy the exact same experience dealing with all of those companies, right? But why? That's not the case for my bank.

Why if I move from Brazil to Germany, I have to move from New Bank in Brazil to Deutsch Bank in in Germany or to Revolute in the UK? uh how why can't I have just a seamless sort of like global banking experience so in order to understand like that uh I think it's good to understand like what banking is about and banking here I'm talking banking as a verb not bank as necessarily institution and it's one of the oldest activities that is in the world so there are like five six actually going to define that six basic layers for banking so first of all like how you store value then like how you manage your identity and compliance, right? So, we don't want other people

getting access to your funds. Then, how you process payments and transfers, how you receive how you receive income potentially like how you pay taxes, how you get access to credit and borrow, and how you save and build wealth for the future, right? So, those are the sort of like the six basic layers for banking. That figure has been evolving over the past like 4,000 years, right? So we got all the way back to the sort of very very old ancient origins like all the way through like modern banking and contemporary banking. So where we are right now is in an age where banks have leveraged a lot of technology

first to be more efficient, to be more profitable, right? So we all got access to our first like mobile internet bankings. Um then we moved to the new bank era where we get this very nice UI and user experience but it's built on top of like very old legacy infrastructure, right? And what does that mean at the end of the day is that this is something that prevents us from going towards this like global banking experience because we cannot process a transfer uh from the UK to Brazil and vice versa if you're depending on Swift which only works 9 to 7 Mondays through Fridays. Uh and it's a

super cumbersome network to operate on super costly and managed by the very traditional banks. And lastly, like you still have regulations that defer on a country bycountry basis. Local payment rails also defer on a country by country basis. User behaviors like there's still some very local unique user behaviors. and how you manage to accomplish like a single banking experience through all of that.

And in our view, that's what no space is enabling is like building this future like nextgen banking and creating this global banking experience with like a global account. And how does that work? Like so if you want view all of those six different layers of banking and you break that down in like how you store value nowadays we can have like a onechain smart account where you store all of your digital assets in there that are going to be using to spend on a daily basis. We have a compliance toolbox that allows you to screen those assets for money laundering for like compliance checks all the sort of things

that you have to do in order to connect to the traditional financial rails all over the world. Then you have payments and in payments you have a global payment method which right now primarily we depend on vis and masterard to be accepted worldwide. So, Visa Mastercard allows you to get accepted on over I would say like close to 200 million merchants right now all over the world and you have the local payment integrations right so you have for instance like Pix in Brazil uh SEPA and Ibans in Europe uh Fed wires in the US and you can keep going on that then we have the potential to integrate

with partners in the NOS's financial ecosystem uh like Monarium BRLA and Noah to integrate on those local rails with Visa to connect on the global rail and on top of that given space built on a permissionless API you can leverage all the DeFi protocols to do all the savings wealth building borrowing credit all the other like different functions that you can do on banking but at the end of the day Why does it matter? Right? Uh and I think for those of you who were here who were here last year uh when no pay was announced and

and launched, so some significant things have changed and we've accomplished quite some interesting things. First of all, we processed 1 million payments, meaning 1 million transactions of crypto payments being processed to merchants all over the world. in a very seamless way. Actually like over 115,000 merchants in 10,000 cities in over 130 countries in all five

continents. So that's the scale of distribution that you can get in a year instead of like have to build all of these yourself. Bridging like the thready rails with the blockchain crypto rails in leveraging compliance regulations and connecting that to what we use as as our day-to-day in crypto allows you to do that. That's all if like one single onchain self custodial smart account but no pay we're not here to do this to become a neo bank ourselves. So it's not

our strategy to kind of like create and control the ultimate user experience. So we're about providing the infrastructure to power then like thousands dozens of thousands of like neo banks and uh others who want to offer that capacity to their client base cryptonator or otherwise right so I think we're like embedding the crypto superpowers and blockchain capacity on on a very simple way for everyone to use So no space built for the open internet.

What does that means? That our API is permissionless whenever it's possible to be permissionless. So right now we have three partners that are directly integrated with Nosis Bay. So Zo, Pikn going to hear from one of our friends here uh quite soon. Uh Matri right the nosis gateway to circles also. So all of those partners are integrated through the nosis pay API and they can very simply in a very straightforward simple fashion issue a card to their client base and process payments like all over the globe.

So in most cases like uh a quick demo is worth more than a lot of words also right. So uh hopefully this works but the idea is to also showcase like how simply you can uh integrate with nodes pay. So our idea is to build no pay with a developers first approach. So, I haven't been coding for a while. So, you guys are going to have to bear with me for like a little bit and hope this still does work. But basically, like I have my Let me see how I can switch my screen here.

Okay. So things work. So I have my Zelium wallet here on my browser and I have Postman. So for those of you who are not as technical, that's a super nice interface for you to test APIs.

So basically I can start by getting a very simple API call to get announce from Nospay and I can use my wallet to sign a transaction authorizing osus pay API to get access to my information here. I verify this signature.

I get a token now that all my further API calls can basically leverage this token for everything that I'm going to be doing here. So, first thing I can do is get my user profile. [Music] It did work. So I got all the information from my test account here. So someone seems to be eating a lot of fuel here. I don't know why but so I have all my information here. And if I want to create a virtual card order, meaning I want to oops,

I want to create a virtual card to buy circles. My card is created. I just created a virtual card connected to my web 3 wallet. And it's been a while since I haven't been coding for real. And I can manage every single thing from here. So if I go back potentially to my nose pay account. I have one more card created here on my list of cards that I did a lot of tests

before doing this. Right. So, so it's as simple as that. So, hopefully we're not not going to hear anything too different from Joan Link and talk about picnic. It's not too complex, right? as it's not supposed to be. And that's going to be the exact same experience if you are in Brazil, in the UK, in Germany, anywhere else.

So we enable this what we're calling like a non-compliance. So if you want to on ramp your funds in Brazil using a pix transfer to your nose pay account, you're going to be doing KYC only once. You on ramp funds in Brazilian AI using PIX. You get Brazilian AIS on your account. You swap Brazilian AI for USDC on chain through call swap. You get your USC on chain. You issue your nose pay card virtual. You add it to your Apple wallet or like to your Google Pay wallet.

You pay for something out of that account. Or if you want to do like a transfer out as well, money out, money in, you can do all of that with one single integration. So now some time for questions. That's all. Hope could give a overview of like what this is all about. Happy to take questions here. [Applause] Thank you so much Hafa. Let's open it for questions then.

Yeah, first one. Thank you for Thank you for the demonstration. Can you elaborate a little bit about how and into what extent it is decentralized this API endpoint I would say or the underlying infrastructure so we can rely on that you know right so that's that's that's a great question and I get it all the time primarily because if you're talking about decentralization and you're talking about cards and threadfi it isn't love at first sight Right.

Right. They're not meant for each other. They didn't bump out of serendipity on on some weird place and they fall in love automatically. Right. Uh they have very different concepts. Uh they come from very different like backgrounds. So how reconcile thread with DeFi in all of that and it's like any type of relationship right like something's got to give and where define the boundaries is what's extremely important right? So no pay relies on this decentralized fully decentralized account. So you have right now a smart contract that holds all of your assets in there on no chain fully decentralized.

Right? What we developed as a core technology is the ability to process thread five payments from that smart contract. And what does that mean? Right? Uh a card is a type of payment that's super interesting because you can do a lot of things with a card. You can put a transaction. Everyone here here uses Uber right? We all do use Uber, right? So when you order an Uber, you are authorizing Uber to charge you on your card. Let's say like seven bucks, €7 to go from point A to point B, right? You do that authorization. At the end of the ride, you give five stars to the heart to to

your driver and you give him a 5% tip, a 10% tip. How does that work from a payment perspective, right? Or if you're not happy with the driver, you want to cancel that ride. How does that happen? And this is not something that's super intuitive to build on blockchain, right? Because once you sign a transaction for five bucks, okay, I want to give like a do a neuro extra for tip like how can I make that happen, right? I have to start another transaction and so on so forth.

So there's some reconciliation on how thready and blockchain work that's encapsulated in our API, right? So you always have control over funds. you can go on chain and like revoke all the assets and do all the type of things that a very experienced like web3 developer can do. Uh but to some extent there needs to be a bridge to those red payments and what we have built is the capacity to do that. So you can simply say like look I don't want to get access to your card anymore just shut this down totally fine. you're just not going to be able to process card payments or like if we enable it again like you can process card payments but your assets are always like on a decentralized way uh to some

extent like once they leave your wallet to be cleared and settled with like Visa or any other payment processor uh going to have to take those funds and we do this in a way that we don't take custody of the funds ourselves either. So if you take a look at like how funds leave your wallet all the way to the merchant all the way up to Visa, we don't touch the funds and then Visa right now currently pays most merchants um via Treadfi. So they will offer those funds and and settle with the merchants uh through Treadfi.

Thank you so much Hafa. Uh we unfortunately don't have time for more questions but if you have questions um find Rafa the venue ask the questions. Thank you so much. Thank you.