Adam Bialy

OpenPayd Bridge Building Between Banks, Tech

In this era where new technology meets old OpenPayd helps forge efficient links between companies and the payment and banking services they want, CPO Adam Bialy said.

With some institutions and companies having antiquated technology in competition with those using more efficient systems, the race is on to hone every aspect of a firm’s operations in that search for a competitive edge. Doing it yourself is inefficient and once you get under the hood it can become quite messy, so it makes sense to bring in a specialist.

A specialist like OpenPayd, that serves as an aggregator of sorts where they track companies offering different technologies and work with clients to find the best ones for their needs. When it comes time to connect the two OpenPayd provides the integrations so the client can become operationally effective as soon as possible.

“In terms of technology we want to be the Stripe of B2B,” Mr. Bialy said.

In meeting with a client OpenPayd assesses their existing technology and discusses their goals. Before recommending a solution and pairing, say, a cryptocurrency exchange with a bank, they determine both the needs of the exchange but also the risk tolerance of a bank.

Needs are often very specific and that requires a combination of providers, Mr. Bialy added. That means additional technology integrations that are addressed by the OpenPayd API. Get a clear picture of desired workflows and balance that with existing technology.

“There’s a healthy risk/reward calculation going on,” Mr. Bialy said.

Keeping with the cryptocurrency exchange, a simple purchase is anything but, Mr. Bialy explained.

Adam Bialy

“Every single time this touchpoint is invoked there is a compliance element to it. You’re essentially clashing the decentralized world with a highly transparent and highly sensitive world.”

Is the exchange a customer of that bank? Is the buyer? There’s many questions to ask. Combine that with the desire for instant settlement in the volatile world of cryptocurrency and the technology needs to be precise. It’s not unlike the challenges a foreign exchange broker experiences in managing many currencies.

That familiarity with different markets is useful when pairing a crypto exchange with a financial institution, Mr. Bialy said. When the next run occurs will the bank have the funds to meet the withdrawal demand?

“This is where the cryptocurrency activity can become a strain on the banking ecosystem,” Mr. Bialy said.

The 2021 Outlook

Don’t expect cryptocurrency to become mainstream this year, Mr. Bialy suggested. It currently is a storage of value, much like gold. It was designed as a medium of exchange, yet it has no banking endorsement.

“The use is not there,” Mr. Bialy said. “In 2021 I don’t believe there will be any breakthrough use case.”

In a decade or two, should (when?) one of the older systems like SWIFT fail in its use case perhaps cryptocurrency can fill the void, he suggested. It isn’t likely to be the source or the end point, but can help simplify the journey thanks to the increased transparency it offers. In that sense aspects of SWIFT and the Satoshi Manifesto are remarkably similar with crypto offering the transparent ledger where you know where your funds are and who is dealing with them at all times.

“I think that is a unique use case cryptocurrency could go into in the near future,” Mr. Bialy said.

The COVID-19 pandemic should accelerate the transition to a digital economy, Mr. Bialy believes.

“It’s a long-term evolution, never a shock,” he observed. “Customer habits never change overnight.”

And for those thinking this bodes well for crypto, perhaps in the longer picture but not in 2021, Mr. Bialy said. There needs to be at least two behavioral shifts to get to crypto. First society has to give up on cash and go digital. Then they have to get used to digital and make the move to crypto. Show them clear benefit before you expect them to change.

“I don’t see cryptocurrency in those categories,” Mr. Bialy said. “Stablecoins have a shot because you’re taking away what makes cryptocurrency unviable as a medium. You’re pegging it to a mainstream currency so it’s easier to understand.”

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