March 27, 2023
Developments like multi-purpose computation (MPC) and account abstraction (smart contract wallets) are bringing accessibility and innovative capabilities to wallets. Wallet providers like Web3Auth, Venly and more recently Coinbase are making wallets ubiquitous in the same way that email is today.
At Poko, we’re giving wallets "bank-like superpowers" by extending their capabilities in everyday use in a compliant manner and enabling them to earn a revenue share from every user transaction made. In this article, we will explore the various superpowers that can be granted to wallets through interactions with fiat rails.
In most of the world, real-time payments on banking rails, such as PIX in Brazil and UPI in India, are becoming the norm for purchasing everything, from flight tickets to daily products online. They are fast and cheap. These rails can be connected to crypto wallets for seamless transaction flows, from bank accounts to wallets and back to bank accounts across the globe. For example, users can top up their wallets by scanning a QR code and receive crypto immediately.
Imagine the users being able to purchase any digital goods or services from any smart contract with their local fiat currency, using wallets as the main user interface. We allow users to do that using any common payment method in their country, without having to onramp from fiat to crypto now on crypto rails. This will make buying web3 products seamless.
Imagine turning the balance in users’ wallets into spendable fiat on their Visa and Mastercard rails. Wallets can issue cards for their users to easily spend the crypto they’ve earned and send funds from their wallets to their cards. Their earnings on various web3 games, guilds, platforms, DAOs, or bounty projects can now be taken into the off-chain world for seamless spending. That will make them more inclined to hold funds in their wallets and remain loyal to the platform.
With the enriched spending and earning history from users’ wallets on both on-chain and off-chain transaction data, credit limits can be enabled on wallets. This will allow wallets and B2B wallet providers to offer credit card-like functions, potentially financed through a decentralized lending pool.
Crypto wallets are no longer just a tool for storing and sending digital assets. They are now being integrated into various applications, such as games, financial applications, and marketplaces. By connecting with local payment rails and Visa and Mastercard card networks, wallets can now be given bank-like capabilities. These capabilities not only make wallets more accessible and user-friendly for mass users but also provide a way for them to earn additional revenue through payment processing.
On the other hand, wallet infrastructure providers can enable their web3 business partners to turn on and off the onramp, offramp, and card issuance functions for their end-user wallets. This allows wallets’ enterprise customers to perform a wide range of functions. That could be paying their contractors or product testers around the world in seconds and at a fraction of traditional banking costs. The implementation of these superpowers will provide a frictionless and convenient payment experience for users.
Considering adding some of these functionalities to your wallet? Reach out to us now!