Unlocking Trust: Digital Wallets for Identity Verification and Asset Transfer
As part of Scotland FinTech Festival, the “Crypto FinTech Seminar” will outline some key areas of knowledge and innovation related to the usage of cryptography, blockchain, zero trust and quantum computers. We took some time to chat to Professor Bill Buchanan, who will be co-presenting the seminar along with Dr Mwarwan Abubakar, about the current trends and evolution of the digital assets space.
The fact that we still use our scribbled signatures and hard-copy contracts as a core method of proving our identity within high-value and high-risk transactions still amazes Bill Buchanan, Professor of Applied Cryptography at Edinburgh Napier University. Especially as these acts are often performed through the use of mainly untrusted communication systems such as electronic mail. “We still live very much with a paper-based approach to the ownership and the transfer of assets, and often see them poorly managed,” explains Buchanan. “Digital wallets can help solve this.”
Going forward, it is likely there will be a rise in the use of digital wallets, which can be used to transfer assets and – importantly – define ownership. A private key in a digital wallet can not only prove our identities, but also link to our ownership of assets, store our important digitally signed identity documents (such as our driving licence), and provide a way for us to digitally sign things. Improved methods of providing our identity will also likely include biometrics, hard tokens or our location information. At the core of this is public key encryption, which digitally transfers assets without the need for any network connection, and is a central component to moving into a more trusted digital world.
Nonetheless, a cautious equilibrium needs to be maintained between the rights of privacy and the requirements of compliance, such as with money laundering checks and fraud detection. While there are methods used in cryptocurrency that support a full anonymisation of asset transfers, it is unlikely that these would be allowed within a regulatory framework. “There are ways, though, to strike a balance between these things and instil strong levels of trust in transactions by using trusted financial organisations,” proffered Buchanan. “It is thus likely that we will see the rise of proxy entities (agents legally authorised to act on behalf of another party), who will shield the identities of those who are transferring assets, yet the transactions can still be fully checked.”
Going forward, regulation will be fundamental for providing trust, and licences will be needed to perform fully-auditable transactions. Overall, the key aim of the infrastructure behind digital assets must be for citizens to have a stronger integration with public services to move to a properly integrated digital world. “Unfortunately, without a strong identity infrastructure, we will struggle to scale our world into a more trusted one,” concluded Buchanan. “The EU, for example, now wants to roll out an e-ID digital identity for every European citizen, which will allow for closer economic and societal links across EU countries. This will support the freedom of movement across Europe and provide closer economic integration across borders.”
Embedded Payments: Paving the way for the future of business
Payments have always been the leading area of innovation for fintech companies in Scotland utilising open banking and embedded payments making it faster and more convenient to pay and transfer money both locally and globally. That is why Payments & Transactions was designated as one of the four key strategic priority themes of FinTech Scotland’s FinTech Research & Innovation Roadmap 2021-31.
Nick Adams, Director and Payments Experience Specialist at Modulr, spoke with us about how embedded account-to-account payments are enhancing the ability to seamlessly integrate payments into everyday experiences, enabling customers and businesses to make purchases without the need to input bank details, credit card or debit card information. Modulr is leading this category of B2B embedded payments and is registered as an Electronic Money Institution (EMI), enabling businesses to create accounts, control and access, receive and make payments, update systems and customers via webhooks – all on-demand through software.
“When people think about digital payments for businesses and the economy via ecommerce or other platforms they tend to think of card payment players like Checkout.com, Stripe, Braintree (part of PayPal) and then PayPal itself,” explains Adams. “Embedded payments is fundamentally different as it enables businesses to fully embed and control real-time money movements in and out of their businesses through software. The brands I mentioned, among many others, are third-party managed service providers that sit outside their clients’ business. They are focused on the checkout experience, but there’s a whole other area of business payments that has not been brought into the 21stcentury.”
By bringing embedded payments into their platforms, companies can offer their customers custom experiences that align much more to today’s consumer expectations, who want immediate notifications and frictionless payments like Uber and Amazon. Those businesses also want certainty in their Treasury functions on how much money they actually have at any point in time – a real-time view of their cash position. “Modulr enables hundreds of enterprise customers and thousands of SMEs to process and reconcile large volumes of payments automatically and in real-time rather than using antiquated batch processes,” describes Adams. “It’s providing access to real-time payments for all sizes of every business, from enterprises through to SMEs, to simply plug in through the same API and get the same control and visibility. This instils trust in both buyers and sellers, because they can actually see what’s happening in a transaction, instantaneously.”
From a personal perspective, Adams now considers himself a “payments guy” who, having worked for large global payments businesses, has now transferred to a Scottish fintech scale-up. His advice for those thinking of making a similar move:
- Don’t feel you have to be global from day one; payments is a globally fragmented industry and focusing on a country or region with harmonised payments regulation and processes makes sense. We’ve seen too many global-ambition payments startups fail due to over-stretch
- Promote the exciting opportunities of working in fintech to the talent derived from Scotland’s more traditional financial services businesses
- Be flexible with your teams, but spend as much time as you can together physically in the same space to create energy and move much more quickly.
Adams concludes, “What excited me about moving from a big corporate, to an early-stage scale-up was the ferocious speed and need to pivot constantly. It’s a very invigorating environment. Generally speaking, the people that are in it, I think are having great fun. I’d recommend this to anyone.”
How To Capitalise On The Crypto Boom? This New NFT-Funded Eco-Glamping Resort
If there was ever a time to Look seriously at digital currency, it’s now. Today’s crypto market is worth $1.21 trillion,* and Bitcoin has experienced an 85%** surge since this time last year. Meanwhile, NFTs are bringing the potential of profitability to the masses. Well, now “new wave thrill-seekers” can use NFT’s to gain exclusive access to a one-of-a-kind eco-glamping site featuring an Augmented Reality (AR) gaming experience just 20 minutes from Edinburgh.
Those who are interested in NFTs, but fancy something a little different from their investment, should discover Mythtopia – a unique travel experience only available to NFT holders.
Mythtopia combines ecotourism with an AR gaming experience centred around Celtic mythology in stunning Scottish woodland. Guests can stay in one of the 150 low-carbon impact geometric domes and take part in Mythtopia Legends,’ an augmented reality video game following the tales of Celtic folklore.
By owning a Myths NFT (Myths), investors can stay up to three nights per year at Mythtopia Resort alongside friends and family (up to 4 people per dome). Or, they can stake their NFTs and earn extra cash from their allocated nights.
Founder of Mythtopia, Oliver Pyle-Santini, said: “Our NFT’s enable us to build this amazing resort of Mythtopia! The AR game Legends’ is a unique activity, but totally optional. Come and enjoy a lovely weekend away by diving into our Celtic world; finding hidden treasures and adventuring in mythical quests. We intend on making the resort completely carbon neutral. Using carbon credits through OXEGEN (OXE) tokens will (I hope) help people to go greener, faster.”
The recent boom in crypto can often lead to an opportunity for NFTs. This isn’t the only reason to invest in Myths. Today, individuals are increasingly motivated to lower their carbon footprint and make more sustainable choices. According to a study*** conducted by Earth Day 2023, 78% of the public believe in the importance of individual action to fight climate change, and over a third (38%) say that a financial incentive would help them make more environmentally-friendly decisions.
In addition to the Myths, Mythtopia offers their own crypto currency called OXEGEN (OXE). Becoming an OXEGEN (OXE) token holder, investors can join Mythtopia’s mission of planting 120,000 trees and re-wilding the natural environment. The liquidity of the OXEGEN (OXE) cryptocurrency token will come from the carbon credits of these planted trees. Ideal for eco-conscious investors.
The Myths NFT launch will fund the necessary capital to build carbon-negative dwellings on the eco-glamping site, which will be entirely powered by solar and geothermal energy. Not only this, guests can also get involved in activities that help them re-explore nature, such as lake swimming, star gazing, yoga, and even planting trees themselves.
The first mint date is set to take place in Autumn 2023. The funds raised will be used to build the unique and first-of-its-kind Mythtopia resort, which will open nine months later (Spring 2024).
To learn more about how you can invest in Myths NFT’s and OXE tokens and become part of the Mythtopia story, visit the website here.
Jacobi lists Europe’s first spot Bitcoin ETF decarbonised by Zumo
Underscoring the evolving landscape of digital asset investment and environmental consciousness, Jacobi Asset Management (Jacobi) has introduced Europe’s first spot Bitcoin exchange-traded fund (ETF) on the Euronext Amsterdam exchange. Named the Jacobi FT Wilshire Bitcoin ETF, this innovative investment vehicle not only marks a significant milestone in cryptocurrency but also sets a new standard for environmental sustainability in the sector. The ETF stands out as a decarbonised digital asset fund compliant with SFDR Article 8 regulations, reflecting Jacobi’s commitment to responsible investing.
One of the standout features of the Jacobi FT Wilshire Bitcoin ETF is its verifiable built-in Renewable Energy Certificate (REC) solution. This solution addresses a pressing concern in the crypto space – the energy consumption associated with Bitcoin mining. By integrating REC, Jacobi not only offers institutional investors exposure to the potential benefits of Bitcoin but also enables them to align their investment strategies with environmental, social, and governance (ESG) objectives.
Regulated by the Guernsey Financial Services Commission (GFSC), the ETF trades under the ticker symbol BCOIN.
The ETF derives its benchmark from the FT Wilshire Bitcoin Blended Price Index, a reflection of its commitment to transparent and reliable valuation. The pricing mechanism is also underpinned by the expertise of Wilshire Indexes, ensuring accurate and real-time pricing for investors. However, the true innovation lies in the collaboration with digital asset platform Zumo, which has led to the creation of the REC solution. This partnership has enabled Jacobi to bridge the gap between digital asset investments and environmental responsibility.
Mark Makepeace, CEO of Wilshire Indexes said:
“The launch of the Jacobi FT Wilshire Bitcoin ETF is an important milestone for the digital asset industry and a transformative moment for the global financial industry. We are excited about the partnership with Jacobi and, as a leader in the development of institutional grade digital asset benchmarks, we are committed to helping accelerate the advancement of the entire digital asset ecosystem.”
Kirsteen Harrison, Environmental Manager, Zumo, commented:
“The decarbonisation of crypto is one of the most pressing challenges facing the nascent digital assets sector, and there is increasing pressure on all businesses to have credible plans to decarbonise. We’ve been working closely with Jacobi Asset Management to help them build out an ESG-aligned, future-proofed crypto offering for their customers. It’s hugely exciting to see it come to life in the shape of Europe’s first Bitcoin ETF. We’re creating the investment products of tomorrow ”“ what a moment for the industry.”
By Now Pay Later 2.0, what it means for fintechs and financial services providers
Season 3, episode 8
Listen to the full episode here.
By Now Pay Later is not something new. Offline, it’s a process that goes back several decades. Online we’ve started to see offers develop in the last 10 years with a real acceleration powered by fintech innovation in the last 5 years.
In the UK this market represents $27Bn and is expected to reach $55Bn by 2028 according to Payments Cards and Mobile.
Recently we’ve started to witness the appearance of what’s called BNPL 2.0.
According to CU today 61% of BNPL users would rather use a BNPL service offered directly from the merchant they’re buying from than go through a third party.
In this episode we’ll be speaking about BNPL2.0 and wonder if this is in fact the future, its advantages and pitfalls
Guests:
Geordie Laing – Head of Partnerships at Zing Cover
Thomas Bull – Partner at EY and Head of Fintech Growth
Nikola Kelly joins Scotcoin’s Advisory Panel.
The Scotcoin Project (TSP) is excited to announce the addition of Nikola Kelly from the Be-It Group to its Advisory Panel.
Nik has a vast background in the Scottish Technology sector, leading highly skilled teams for 16 years. Recently, she completed an MBO of Be-IT Group, which includes Be-IT Resourcing, the largest independently owned IT Recruitment Specialist firm in Scotland, and BE-IT Projects, a growing IT consultancy. Nik’s primary focus remains on the growth of Be-IT Group. She also serves on the Advisory Board for Career Ready, a national social mobility charity, and actively promotes diversity and inclusion in the Scottish technology market. Nik frequently speaks at events on topics such as Women in Technology and Inclusion within Neurodiverse Communities. Alongside her impressive professional achievements, Nik is a mother of four and has received recognition as the Scottish Women in Business Young Star and for her outstanding contributions as a young business leader.
Starting from 1st July, Nik will join the TSP advisory panel to assist in the search for a CEO who will lead the management team. This team’s primary objective will be to develop a preferred partner base centered around TSP’s core values of providing food, clothing, and accommodation for those in greatest need.
Temple Melville, CEO of TSP, expressed his delight at Nik’s inclusion in the Advisory Panel, emphasising her extensive knowledge and expertise in both IT and business. He believes that she will play a significant role in implementing the business plan as it unfolds.
Nikola Kelly shared her excitement about joining the TSP Advisory Panel during this momentous period. Having supported numerous fintech companies in their growth journeys, she finds it incredible to be involved with Scotland’s digital currency and the world’s first ethical cryptocurrency. Nik is thrilled to embark on this amasing journey and contribute to making a positive social and ethical impact.
Zumo pushes to decarbonise digital assets at Money20/20 Europe
Scottish fintech Zumo is just back from Money20/20 where it announced the introduction of Oxygen, an innovative solution aimed at decarbonising digital assets for financial institutions that prioritise environmental, social, and governance (ESG) factors.
This groundbreaking launch took place at Money20/20 Europe in Amsterdam, marking a significant milestone just one year after Zumo and its partner, Zero Labs received a grant from Innovate UK, the UK’s national innovation agency. The grant was awarded to support their joint research on decarbonising digital assets, with a particular emphasis on finding practical approaches for scaling the utilisation of renewable energy in wallets and platforms.
Oxygen empowers Zumo’s clients, including banks and asset managers, to offer ESG-aligned digital asset solutions that are future-proof. This targeted solution combines crypto electricity consumption forecasting and calculation with standard industry data. By leveraging Renewable Energy Certificates (RECs) for renewable energy procurement, Zumo ensures transparency and verifiability in powering crypto or blockchain activities with renewables. As a result, Zumo’s clients can effectively reduce the Scope 3 emissions associated with their digital asset offerings and demonstrate their commitment to sustainability.
The introduction of Oxygen follows the successful completion of Zumo’s Zero Hero pilot project, a live trial that involved purchasing RECs to offset the electricity consumption of Bitcoin transactions conducted through a direct-to-consumer crypto app powered by Zumo’s infrastructure. Through this initiative, Zero Hero REC purchases covered £1.5 million worth of Bitcoin, compensating for a total of 850 megawatt-hours (MWh) of electricity””an amount equivalent to driving an electric vehicle for over 2.6 million miles. Furthermore, Zumo procured an additional 126.36 MWh to decarbonise Ethereum’s historical emissions and the company’s ETH holdings, actively participating in the Blocks.garden initiative.
Nick Jones, Co-Founder and CEO of Zumo, expressed his enthusiasm, stating,
“The carbon footprint associated with digital asset products is often a significant concern. With Oxygen, our pioneering solution, we provide businesses with practical methods to meet customer demands for digital assets while simultaneously addressing environmental challenges and demonstrating positive ESG-aligned actions.”
“Oxygen empowers banks, asset managers, and financial institutions to align their digital asset offerings with their broader net-zero strategies, enabling them to make verifiable decarbonisation claims. Today’s launch is a testament to the tireless efforts of our team and our partners at Zero Labs. We hope it sets a positive example for the market, showcasing what is truly achievable.”
The decarbonisation of digital assets stands as one of the most critical challenges faced by the emerging digital assets sector. Zumo has emerged as a leader in addressing this challenge and has published a series of influential reports that are shaping the industry’s trajectory (accessible at zumo.tech/crypto-knowledge-hub). Zumo’s efforts have been recognised through several accolades, including the prestigious “Best Application of ESG” award at City AM’s
Photo by Worldspectrum: https://www.pexels.com/photo/ripple-etehereum-and-bitcoin-and-micro-sdhc-card-844124/
GiftRound and Mangopay strengthen partnership
GiftRound, the specialist platform for group gift collection, has announced an enhanced partnership with Mangopay, a platform-specific payment infrastructure provider, to handle all payment flows on the platform. This partnership was established in 2018, at the inception of GiftRound, which has thus far processed over £10.5 million through more than 75,000 money pots using Mangopay.
GiftRound offers a secure, dependable and user-friendly online service that facilitates group gift collection. The platform’s aim is to bring people together to celebrate and revive the pleasure of giving gifts in groups for the collector, the donor, and the recipient. Presently, there are over 800,000 users for 125 daily created GiftRounds.
The management of payment flows is central to GiftRound’s service. The company required a robust payment provider to process intricate payment flows. Mangopay’s expertise and capabilities were a perfect match for this purpose, with a long track record of working with platform-specific businesses, including crowdfunding companies. With Mangopay’s API, GiftRound can ensure secure money collection, fraud prevention and anti-money laundering measures, all of which are vital for the platform. Mangopay also offers KYC processes alongside secure and diverse payment methods.
Moreover, GiftRound will now incorporate Mangopay’s e-wallet modular technology, which will add an extra layer of protection and security before dispersing funds to the recipient. This functionality will provide flexible and scalable pay-in and pay-out capabilities, which are crucial for the platform and GiftRound’s commitment to delivering dependable and seamless payment experiences to customers.
Craig Forsythe, CEO & Founder, GiftRound highlights:
“Having started this journey with Mangopay in 2018, we’re delighted to continue working together. Payment flows are crucial for us as we work on maintaining our high levels of growth by listening to our customers to improve their payment experience on our platform. It is key for us to work with a trusted partner and we know that crowdfunding payment flows are part of Mangopay’s DNA. Mangopay will enable us to process multiple payment flows daily in the safest way possible and we look forward to continuing to grow a reliable, secure service with our trusted partner.”
Luke Trayfoot, Chief Revenue Officer, Mangopay declares:
“Our modular and flexible payment infrastructure is a necessary asset for platforms, especially as they look to further improve their payment operations, user experience and scalability. We are proud to support GiftRound on its payment journey and help their customers organise gift collections quickly and easily. The UK represents a key growth market for Mangopay and having national partners such as GiftRound is fundamental for our expansion in the market.”
New Scotcoin reward programme
Scotcoin, a decentralised digital currency created to provide a secure and stable alternative to traditional fiat currencies, has recently announced its new Rewards Programme. This exciting programme is designed exclusively for Scotcoin holders and is a unique opportunity for cryptocurrency enthusiasts to enjoy significant savings on various products and services.
The Rewards Programme, which is the first of its kind, is aimed at providing an innovative approach to incentivising Scotcoin holders to continue holding and using the cryptocurrency. The programme offers a wide range of discounts, including significant savings on shopping, groceries, entertainment, theme parks, audiobooks, and online classes. By utilising Scotcoin as a payment method, users can enjoy these savings and support the growth of the cryptocurrency ecosystem.
One of the most remarkable features of the Rewards Programme is its affordability. For only 1,000 SCOT, users can access the programme and take advantage of the discounts on offer. The availability of such a low-cost programme is a testament to Scotcoin’s commitment to democratising access to its services and supporting its growing community.
The Scotcoin team’s dedication to social responsibility is evident in its recent partnership with Scotcoin Carbon Offset, which allows Scotcoin holders to use their cryptocurrency for carbon offsetting. By using Scotcoin for this purpose, holders can contribute to environmental conservation efforts while enjoying the benefits of the cryptocurrency.
The Rewards Programme is just one of the many exciting initiatives that Scotcoin is launching to promote the widespread adoption of cryptocurrency. With the increasing acceptance of cryptocurrencies worldwide, Scotcoin’s unique approach to incentivising users to hold and use their cryptocurrency could serve as a template for other digital currencies.
For cryptocurrency enthusiasts looking for an ethical and community-focused alternative to traditional fiat currencies, Scotcoin is the way to go. By participating in the Rewards Programme, users can not only enjoy significant savings but also contribute to the growth of a sustainable and socially responsible cryptocurrency ecosystem. To access the Rewards Programme, simply visit the Scotcoin website at scotcoinproject.com/rewards.
Fintech and payroll, disrupting how people get paid
Season 3, episode 3
Listen to the full episode here.
When thinking about payroll generally most people would assume that it is something that works well. You work, you get paid. However, payroll is being disrupted like never before.
According to software company Intuit, one in four workers say they have had paycheque errors. And cloud company Kronos found almost half of workers who have had two or more paycheque errors will look for a new job.
Society is changing fast (even more so after COVID). In this podcast we’ll explore how those changes are impacting the way people work, get paid, pay taxes and how new fintech solutions are developing to make this possible.
Guests:
Ian Hogg – Chairman of The Work Tech Group that owns fastPAYE
Hayley Strachan – Director – Global Employer Services at Deloitte
Richard Tooth – Tax & Legal consultant at Deloitte LLP
Eira Hammond – Executive Director Global Payroll at Hi55 Ventures