The Future of Crypto Payment Systems and Cryptobanks

1. 3-4 the most important characteristics of the payment system?

– Security

– Reliability

– Usability

2. Is there a future for payment systems that work with crypto-currencies?

Definitely, and there are a few blockchain companies working on payment systems that work with cryptocurrencies, such as Coti.io.

3. Can you evaluate the level of competition in the sphere of payment systems. Is fintech able to create payment systems that can really become competitors of existing systems?

The market is saturated with solution; however, with cryptocurrencies becoming more widespread, ability to work with and process cryptocurrencies could give such payment systems an edge.

4. Can the newly created system quickly conquer the market? What’s necessary to achieve this?

If the new player wants to capture the market quickly, they need to partner with large or popular ecommerce companies, such as Amazon, Ebay, Shopify, Wix and others. They could also start by providing a plugin that shops could use via popular platforms such as WooCommerce.

5. Will there be cryptobanks in the near future, in which countries they may appear? Will they be able to integrate into the traditional financial system?

There are already challenger banks that are friendly with crypto. In terms of being able to integrate into the traditional financial system, as long as they comply with all the appropriate regulation, I don’t see why not.

6. Projects that provide crypto loans are coming to the market now. Are their business strategies viable? Will these projects become the real cryptobanks or will they go bankrupt in the near future?    

As the role of the banks changes, it’s likely that retail banking will be heavily focused on loans. A big question is whether these lending companies can earn enough profit from just the loan service or they need to supplement the income from additional services, including those provided by traditional banks. I think they could extend their offering to custodianship, investment banking and some attributes of retail banking, such as handling recurring payments. In this case I see how these companies can become closer to the future version of the bank or a cryptobank.