In this podcast episode, we're exploring how Verestro's Payouts to Cards can elevate your fintech offering. Verestro provides a seamless solution to send money directly to Mastercard or VISA cards worldwide. Simplify integration, enhance user experience, and boost your global reach! Tune in to learn how.
Hey everyone, welcome back. We're diving into something pretty interesting today, Payouts to Cards.
It's a part of FinTech that I think deserves a lot more attention than it
gets.
Yeah.
And, you know, we can be comparing it's like traditional bank transfers to really understand how it works and the pros and cons. And to unpack all of this, we have with us an expert from Verestro. They're a leading FinTech as a service provider.
So we are in good hands.
Thank you for having me.
Welcome to the show.
Happy to be here.
All right, so for those who are like hearing about Payouts to Cards for the first time, let's start with like the very basics.
Sure.
What exactly does it mean?
Well, I imagine being able to send money to someone using their card number, instead of having to deal with bank account details and all that. It's like sending a package, you know, to their home address instead of like a PO box. It still gets there, but through a different route, and more often than not, a faster route.
Okay, so instead of relying on the usual bank transfer systems, payouts to cards, use a different network altogether.
That is correct.
We are talking about leveraging the power of the Mastercard and Visa networks. Specifically, Mastercard Money Send and Visa Direct.
Oh. These platforms are really the backbone of how we process these transactions.
Okay, so before we dive into the specifics of how that all works, let's do a quick comparison with just like traditional bank transfers, just to like set the stage. You know, most of us are familiar with those. A typical bank transfer usually relies on what's then automated clearinghouse or ACH for short. You can think of it as like a central hub. That connects all the banks and financial institutions.
Okay. So when you initiate a transfer, your bank sends instructions to the ACH, along with the money, of course. And the ACH then ensures that it ends up in the correct account.
So like a postal service, but for money? Precisely, although it is a generally reliable system, it can be quite slow, especially for international transfers, which can sometimes take days to complete. Yeah, and that's where I can Payouts to Cards come in until I cut down on that waiting time.
Absolutely. Because it uses the Mastercard and Visa networks, which are already set up for these global transactions, the money can travel much faster. Oh wow. Talk about transfers that can happen in under 30 minutes, regardless of where the sender and the receiver are located.
Under 30 minutes, that's a massive difference. Like imagine sending money from Brazil to Germany, or even like Singapore to Pakistan in that time frame. It's a big deal.
That's pretty impressive.
It really is, especially when you compare it to systems like Swift or SEPA transfers, for example, these traditional methods, which are essentially messaging systems that banks use to communicate payment instructions, internationally and across Europe, respectively. They can take much longer.
Okay, so speed is definitely a major advantage here. But I'm guessing there's a trade-off somewhere. What are some of the downsides we need to consider?
You're right. There are a few important considerations. Cost is one of the big ones. Payouts to Cards tend to be more expensive than traditional bank transfers. This is mainly because of the fees charged by Mastercard and Visa for using their networks. We're usually talking about somewhere between 0.5% to 1%. Plus an additional fee per transaction, ranging from 0.1 to 0.8 euros. So that's definitely something to factor in?
Yeah. Especially for larger transfers.
Absolutely.
Where those percentages can add up? Yeah. And of course, there's the issue of sharing card numbers.
In today's world, people are understandably concerned about data security. They might hesitate to provide that information. It's something we at Verestro take very seriously. We have implemented
robust security measures to ensure all transactions are secure.
Of course. That's good to hear. So it's safe to say that.
The main hurdle here is convincing people that it's safe to share their card information, rather than like the actual security of the system itself.
For the most part, yes. We utilize cutting edge encryption and fraud detection mechanisms to protect sensitive data.
In many ways, it's as safe if not safer than traditional methods. But we understand people's hesitation, and we work hard to educate our users and build that trust.
That sounds like building that trust is key for wider adoption. Now, you mentioned earlier that Payouts to Cards leverage like existing networks. Are there any limitations within these networks themselves?
Yes, there are. Certain countries like Germany and the USA, for example, often block these types of transactions. So the global reach isn't truly universal just yet. There also limits on transaction amounts. Usually around 5,000 to 10,000 euros or US dollars per transaction set by Visa and Mastercard. So even with its speed and global reach, it's not a completely open field.
Right. What about Verestro's role in all of this?
How do you fit into the Payouts to Cards landscape? So we essentially simplify the implementation of Payouts to Cards for businesses. We take care of all the technical complexities, ensuring smooth integration with existing systems, and providing a seamless experience for both businesses and their customers. That's interesting. So you're not just facilitating the transactions themselves.
You're also helping businesses navigate the entire process of
integrating this technology.
Exactly.
We handle everything from compliance and security to providing user-friendly interfaces and robust reporting tools. This way our clients can focus on their core business operations. While we take care of the Payouts to Cards infrastructure, it's fascinating to see how different industries are starting to adopt and integrate payouts to cards into their operations.
OK, let's get specific then. What are some of the real-world examples and use
Cases that are emerging?
Well, one that's already seeing significant traction is the gig economy. Think about free-lancers, independent contractors, or anyone who gets paid on a project basis.
Right.
They often need to get paid quickly, sometimes even across borders. And traditional bank transfers can be a real headache in those situations.
Yeah, dealing with international transfers and different currencies can definitely slow things down.
Exactly. Payouts to Cards can streamline the entire process, allowing these workers to get paid almost instantly directly to their cards. It's a significant improvement in terms of speed and efficiency.
It's almost like getting paid in real time. I imagine this could also be beneficial for businesses that need to make frequent but smaller payouts, things like insurance companies processing claims, for example. Your spot-on take micro insurance, for instance, where claims are often for
relatively small amounts, being able to send those payments out quickly and efficiently through
payouts to cards can be a game changer. It improves customer satisfaction and positively impacts a company's operational efficiency.
It seems like a win-win situation for everyone involved. Speaking of convenience, what about the travel industry? It seems like a natural fit for payouts to cards.
Absolutely. Think about travel agencies that need to reimburse customers for canceled flights or unexpected expenses. Or imagine being a tourist who loses their wallet while traveling abroad. Being able to receive emergency funds on your card within minutes can be a life saver. It certainly beats those frantic calls to the bank trying to wire money across the globe.
Definitely. And beyond just emergencies, it simplifies things like splitting expenses with travel companions. You can settle up right there using Payouts to Cards. So it's not just about consumer
convenience.
Businesses in the travel industry can also benefit from the speed and efficiency.
Precisely.
It can streamline things like paying commissions to travel agents or distributing payouts to partners.
OK, so we've covered the gig economy insurance travel.
Are there any other sectors where you're seeing this technology gain traction? The remittance market where people send money to family and friends in other countries also holds a lot of potential. That's a huge market. And one that has traditionally been underserved by like conventional financial institutions.
Right. Traditional money transfer services can be expensive and slow, especially for cross-border transactions. Payouts to Cards offer a faster and potentially more cost-effective alternative, particularly for smaller amounts.
So it's not just disrupting business operations. It's also about giving individuals more control over their finances and making it easier for them to support like loved ones across the globe.
Exactly. And that's one of the things that makes this technology so exciting. It has the potential to democratize financial services, making them more accessible and convenient for everyone. It's as if we're on the verge of like a fundamental shift in how we think about and interact with money. But of course, like any emerging technology, it's not without its challenges.
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Sure. We've discussed cost and security concerns. What are some of the other hurdles that need to be addressed for Payouts to Cards to reach its full potential? Regulation is a big one.
The financial services industry is heavily regulated. And for good reason.
Right. Regulators are still working out how Payouts to Cards fit into like the existing framework. There are legitimate concerns about things like money laundering and fraud prevention that need to be carefully considered. Right. These are crucial issues
that need to be addressed for any new technology in finance.
Absolutely. And this is where companies like Verestro play a critical role. We work closely with regulators to ensure that our Payouts to Card solutions comply with all the relevant laws and regulations.
So you're not just developing the technology, you're also actively involved in navigating the legal landscape to ensure everything is done by the book.
That's right, making it easier for businesses to adopt this technology. While ensuring everything is secure and responsible is a big part of what we do.
It sounds like there's a lot of potential here. But also a lot of complexity to navigate. I guess that's often the case with groundbreaking technologies.
It is.
What are some of the specific measures or solutions that are being developed to address these regulatory concerns?
Well, one of the key areas of focus is KYC and AML compliance. Know your customer and anti-money laundering. We've implemented robust identity verification processes and transaction monitoring systems to prevent fraudulent activities and ensure regulatory compliance.
So it's a multi-layered approach, involving both technology and adherence to strict protocols.
Exactly. And it's an ongoing process. We're constantly evaluating and refining our systems as regulations evolve and new threats emerge. This proactive approach seems crucial for building trust and ensuring long-term sustainability.
You're absolutely right. Building a secure and trustworthy platform is essential for gaining the confidence of both businesses and regulators.
So while there are challenges, it sounds like there's a lot of effort going into addressing them head on.
There is.
What are some of the areas where you see Verestro focusing its efforts in the future?
Regarding Payouts to Cards. One area we're particularly excited about is expanding the network's reach.
We're actively working on connecting with more financial institutions and payment processors globally to make Payouts to Cards a truly universal solution.
That sounds ambitious. What about user experience? Are there any plans to further streamline or simplify the process for both businesses and individuals?
Absolutely.
We're constantly working on improving our platform's user interface and making it more intuitive and user-friendly. We want to make it as easy as possible for businesses to integrate and for individuals to send and receive money seamlessly. This focus on user experience is crucial, especially as the technology evolves.
It is. And becomes more widely adopted. What are some of the specific
features or improvements that users can expect to see in the future?
We're working on developing more personalized features, such as allowing users to set spending
limits, create recurring payments, and manage multiple cards from a single platform. We're also exploring ways to integrate with other FinTech solutions, such as budgeting apps and expense trackers, to provide users with a more holistic financial management experience.
It sounds like you're really trying to create a comprehensive ecosystem.
We're paying out to cards, going beyond just the basic functionality of like sending and receiving money.
That's exactly right.
We see Payouts to Cards is more than just a payment method. It's a platform that can empower individuals and businesses to manage their finances more effectively and achieve their financial goals.
It's a vision that certainly resonates with like the increasing demand for user-centric and integrated financial solutions.
Absolutely. We believe that the future of finance lies in empowering users, with the tools and insights they need to take control of their financial well-being. And Payouts to Cards has the potential to play a key role in this transformation.
Well, this certainly sounds like you're on the cutting edge of this exciting new frontier in FinTech. Before we wrap up this part of our deep dive, are there any other key takeaways you want to emphasize for our listeners? I think it's important to remember that Payouts to Cards is not just about speed and convenience. It's about creating a more inclusive and accessible financial system. It has the potential to level the playing field, empowering individuals and businesses of all sizes to participate in the global economy on an equal footing.
That's a powerful message in an important reminder of the potential social impact this technology can have.
Exactly. It's not just about making transactions faster. It's about using technology to create a more equitable and prosperous future for everyone.
It's an exciting prospect, and one that I'm sure will be following closely in the years to come. Now as we head into the final part of our deep dive, I want our listeners to think about the long-term implications of the shift towards a more interconnected and instantaneous financial world. What are the potential benefits and challenges that we need to consider? We'll explore these questions and more in the next part of our deep dive. It's amazing to think about just like how rapidly technology is changing the way we handle money.
It really is. And I think Payouts to Cards is a perfect example of that transformation in action. It feels like we're moving towards a world where transferring money is as quick and effortless as sending an email or something.
It's exciting, but it also makes you wonder about the long-term implications of such a shift. That's a great question.
We're still in the early stages of understanding the full impact of this technology. But if I had to speculate, I'd say it has the potential to level the playing field in many ways.
What do you mean by that?
Well, traditionally, financial institutions have held a lot of power over how money moves around the world. They set the rules. They determine the fees. And they often prioritize the needs of larger corporations over individuals. It's a system that hasn't always been the most fair or inclusive, even if it has worked for them. Exactly. But with technologies like Payouts to Cards, we're witnessing a power shift. Individuals and smaller businesses are gaining access to tools that allow them to move money more efficiently and often at a lower cost. It's like bypassing the traditional gatekeepers and creating a more direct path for financial transactions.
Precisely. This has the potential to unlock countless opportunities. For those who have historically been underserved by the traditional financial system. That's a powerful concept. It's not just about speed or convenience. It's about fostering a more inclusive and accessible financial system for
everyone. That's a core aspect of it. And it's one of the things that makes working in this space so
rewarding.
Yeah.
It's truly inspiring to consider the possibilities. But as we wrap up our deep dive, it's important to acknowledge that every new technology comes with new challenges and potential risks.
You're absolutely right.
We can't get caught up in the excitement without carefully considering the potential downsides. We've tested on some of those already, such as security concerns and the need for robust regulation.
Are there any other potential pitfalls we should be mindful of?
One concern is the potential for financial exclusion. While this technology can make financial services more accessible for some, it could unintentionally exclude others who lack access to the necessary technology or who aren't comfortable using it. It's like a digital divide, but in the financial realm.
Exactly. It's something we need to be very conscious of moving forward. We need to avoid creating a two-tier system where some have access to these new tools, while others are left behind. That's a crucial point. Innovation shouldn't come at the cost of equity inclusion.
I completely agree. Open and honest conversations about these issues are essential. We need to be aware of the potential risks and work together to mitigate them. This has been an incredibly insightful conversation.
I feel like we've only just scratched the surface of a complex and rapidly evolving landscape. You've given us a lot to think about. As we conclude, what's the one key message you hope our listeners take away from this deep dive?
I think the most important takeaway is this Payouts to Cards is more than just a technological innovation. It represents a potential catalyst for social and economic change with the power to reshape the financial landscape and empower individuals and businesses in ways we're only beginning to grasp. It's a powerful reminder that technology is a tool. It's up to us to use it wisely and responsibly to build a better future for everyone.
Well said. Thank you so much for joining us on the deep dive. It's been a pleasure having you.
The pleasure was all mine. Thanks for having me.
And to all our listeners, if you're interested in learning more about Verestro and the work they're doing in the Payouts to Card space, be sure to visit their website will include a link in the show notes. And as always, if you enjoyed this episode, please don't forget to subscribe, rate, and review the deep dive wherever you get your podcasts. Thanks for listening, and we'll catch you on the next deep dive.
