Revolutionizing Fintech with Payout to X-Pay: Podcast Episode 20

In this episode, we unpack the groundbreaking Payout to X-Pay solution, a game-changer for Fintech companies looking to simplify money transfers. We dive deep into how this technology leverages the power of xPay wallets like Apple Pay and Google Pay, using secure card tokens to eliminate the need for traditional bank details.

We explain how senders can initiate transfers with just a payment link, and how recipients can receive funds directly to their chosen card within their xPay wallet. We explore the security benefits of tokenization, the ease of integration, and the potential for Payout to X-Pay to revolutionize payment flows.

Learn how this innovative solution can enhance user experience, boost customer satisfaction, and give your Fintech business a competitive edge. If you're ready to offer instant, secure, and hassle-free payouts, this episode is for you. Get in touch with Verestro to learn more about integrating Payout to X-Pay into your platform.

Hey everyone, welcome back for another deep dive. Today we're zeroing in on something that's super relevant for everyone in the Fintech space. You know, we always hear from you guys about the need for speed when it comes to payments, lower fees, and let's be real, the whole hassle of dealing with different payment systems and needing all that detailed, recipient information. - Right.

- I mean, who wants to chase down IBANs all day? - No, nobody. - So today we're really excited to be diving deep into Payout to X-Pay, which has the potential to be a total game changer in how we think about money transfers. - Absolutely. - So for all of you Fintech companies out there listening who are constantly on the hunt for innovative solutions, we're going to break down exactly how this technology works and what the real benefits are for your business.

- For sure. - And to help us do that, we've got an expert from Verestro with us today. - Hi. - The company behind Payout to X-Pay.

Welcome, so let's jump right in. - Thanks for having me. So I guess the first thing we need to address is, what exactly is Payout to X-Pay and why is it such a big deal for the Fintech world? - Right, so Payout to X-Pay, it really boils down to this need for really seamless money transfers. - Okay.

- And I think what's especially interesting for Fintechs like yourselves is that it allows you to send money without having to deal with all those traditional bank details. - Okay, so no more account numbers, no IBANs, no sort codes. - Exactly. - That kind of thing.

- Exactly, you don't need any of that. You know that those traditional methods like SEPA or Swift, they can be a real pain. - Yeah, totally. - Delays all the time.

You need so much information from the recipient, it can really slow things down. - Yeah, it's a huge bottle like for a lot of companies. - Absolutely, and that's why we saw this opportunity to leverage something that's already out there and incredibly popular to make these payments much, much smoother. - Interesting.

Okay, so you've mentioned leveraging something that already exists. I'm guessing you're talking about X-Pay wallets. - You got it. - Like Apple Pay and Google Pay.

- So for our listeners who might not be as familiar with those, can you give us a quick rundown of what they are and why they're so important to this pay out to X-Pay solution? - Absolutely, so X-Pay wallets, and you're right, the big ones are Apple Pay and Google Pay. They're basically like having a secure digital wallet on your phone, where you can store your payment cards. - Ah. - And what this does is it allows for really, really fast and secure payments without you actually having to pull out your physical card every time.

- So it's like a virtual version of your wallet, but just for your cards. - Exactly, and what makes it even more interesting for Fintechs like you is that they have massive global adoption. - Huge, right. - I mean, they're available in so many different countries and they work with almost every bank and card you can think of.

So the great thing is the infrastructure is already there. It's established and chances are your users are already using these wallets. - Right, they're already familiar with the technology. - Exactly.

- Yeah, that makes a lot of sense. So let's talk about how a payment actually happens using one of these X-Pay wallets, just so we can see how payout to X-Pay fits into that whole process. - Sure, so the first step is your user adds their card to the wallet, which they can do manually, or a lot of times through their banking app, which makes it super easy. - Right, so they can just link it right from their bank.

- Exactly. Now here's where things get interesting from a security perspective. Tokenization, so instead of the actual card details being used for payments, the system creates this unique, inscripted identifier. We call it a token.

And this token is what's used for every transaction from that point on. So the user's actual card number isn't stored or shared during any payment, which significantly reduces the risk of fraud. - Right, so it adds an extra layer of security there. - Exactly, so when they wanna make a contactless payment in the store, they just hold their phone near the terminal, they authenticate, and boom, payment's done.

- Easy. - And for online or in-app purchases, they just select Apple Pay or Google Pay is their payment method. And again, that token is what makes the payment happen. - Right.

- So they don't have to enter their card details every single time. - And since those details aren't shared with the merchant, it's more secure for everyone involved. - Exactly. - Okay, so this tokenization thing seems like a pretty big deal.

- Absolutely. Can we talk a bit more about what an X-Pay card token actually is? - Sure, think of it like this. - Okay. - The X-Pay card token, it's basically a secure digital stand-in for your user's physical card.

- Okay. - So when they add their card to their Apple Pay or Google Pay wallet, the X-Pay platform generates this unique encrypted token. So instead of transmitting their actual 16-digit card number during a payment, it's this token that's used. - So it basically acts as the secure reference point - Okay.

- That allows the payment to go through without actually exposing their sensitive card information to anyone. - To the merchant to any third parties. - Hey, to anyone. Now it's interesting because while it's this unique identifier, it actually has a structure that's similar to a standard pan.

- You need a primary account number. - Exactly, that's just for processing purposes. But it's crucial to understand that the actual pan is never revealed. - Okay, so it mimics the structure, but it's not the actual number.

- Precisely. - Okay, so we've talked about how these secure tokens are being used for outgoing payments, right? - Right. - But now let's get to the heart of what we're really talking about today. Payout to X-Pay.

- Exactly. - So the question I know a lot of our listeners are asking is, if these tokens can be used to send money out, can they also be used to receive money? - And that's where things get really exciting. - Yeah. - Because the answer is yes.

- Okay. - And it's a core of the rest of the solution. - Right, so tell us how that works. How can these tokens actually be used to receive money? - So what's really groundbreaking here is that these secure tokens, which represent a user's card in their digital wallet, they can be used to receive funds as well.

And that's the whole idea, the Payout to X-Pay. - Gotcha. - And if we look at the bigger picture, the fact that these wallets are so widely adopted, it creates this amazing opportunity to streamline the whole process of receiving money. - Okay.

- And really bypass a lot of the issues that come with those traditional payment methods. - Right, like cutting out all those clunky old systems. - Exactly. - Okay, so I think a lot of our listeners are probably trying to visualize how this would actually work in a real scenario.

So let's paint a picture. - Okay. - Let's say one of your users, a customer of a Fintech platform, wants to send money to someone. - Right.

- But all they have is their contact information, maybe on a messaging app. - Right. - No beige account details, no card numbers, nothing like that. - Right.

- How does Payout to X-Pay handle that? - Okay, so let's imagine the sender wants to send some money, but they don't have the recipients bank details or card number. - Right, they just have their contact info. - Exactly, just their contact on a messaging app. - Okay.

- So the sender would use the Payout to X-Pay application, which as a FIntech, you could integrate into your platform. - Right. - And they would enter the amount they want to send and the currency. - Okay.

- Simple as that. Our application then generates a unique payment link. - Okay, a payment link, that way. - And the sender shares this link with the recipient.

- Through the messaging app. - Through whatever messaging app they're using, and that's it for the sender. - Their part's done. - Exactly.

- Okay, so what happened on the recipient's end? - So the recipient gets the message, they see the payment link and the details of the transfer. They open the link and they're presented with a summary of the transfer. And importantly, they see an Apple Pay or Google Pay button. - Depending on their device.

- Exactly. So they tap that button, their X-Pay wallet opens up. - Okay. - And they choose which card they want to receive the money on.

- Okay, so they pick a card from their wallet. - Exactly. And then the X-Pay server generates a card token specifically for that card. - Okay.

- And sends it back to our application. And this part is really important for security. - Okay. - This token is encrypted with Verestro's public key.

- Okay. - Which means only our systems can decrypt it. - So it adds that extra layer of security. - Absolutely.

So then our application takes that secure token and initiates the transfer of funds directly to you the recipient's chosen card. - Wow. So it sounds like a really streamlined process. - It is.

- So let's bring it back to our listeners, those Fintech companies who are listening right now. - Yeah. - What's the real value proposition here for them? Why should they consider integrating payout to X-Pay into their services? - It's a great question. So the value for you is that we're giving you a way to offer payouts that are incredibly fast, extremely secure thanks to that tokenization we talked about.

- Right. - And super convenient because you're completely eliminating the need for all those traditional banking details. And by tapping into that huge user base of X-Pay wallets, you can offer a much smoother experience. - Okay.

- For both sending and receiving money. - Okay. - Which leads to happier customs. - Yeah.

- Less friction and your payment flows. - Right. - And ultimately a stronger competitive edge. - It makes you stand out from the crowd.

- Exactly. And what's really revolutionary is it's not just about the speed. It's about the fact that you can bypass all those old legacy systems and make payouts feel as simple as sending a text. - So it's like you're taking this really complex process and making it incredibly simple.

- Exactly. - Okay, so to recap for our Fintech listeners, the key advantages of Payout to X-Pay are we're talking speed of transactions, the security that comes with tokenization, the convenience for users because they don't need to share all that sensitive bank info. - Right. - And the fact that it uses that existing S-Pay infrastructure.

- Absolutely. - So it's a pretty compelling opportunity to streamline payouts, wouldn't you say? - I would absolutely say so. - Amazing. Well thank you so much for breaking all that down for us.

- You're welcome. - I think this is something that a lot of our listeners are gonna be really interested in exploring. - I think so too. And if you are interested in launching payout to X-Pay and offering this really seamless experience to your users, we encourage you to reach out to Verestro.

- Okay. - You know, we can help you integrate the solution into your platform. We're really excited to work with Fintech companies like yours who are pushing the boundaries of what's possible with payments. - Absolutely.

And it really makes you think about the potential for tokenized payments to completely change the way we move money in this increasingly digital world. - It's a really exciting time. - It is. It definitely gives you something to think about.

- Well thank you so much for joining us today for this deep dive into Payout to X-Pay. - It was a pleasure. Thanks for having me. - Absolutely.

And to all of our listeners out there. - Yeah. - We'll catch you on the next deep dive.