Episode 165: The Global Macro Story (Zotapay)

Breaking Banks Europe is back, and today we're here in a very special episode with one of the most promising companies in the payments space - Zota . Our two guests Valerie Standret and Alex B. will talk about alternative payments method, Zota 's core business.

Zotapay focuses on connecting #merchants with emerging markets. Alternative #payment methods are critical and very important in emerging markets, data shows that credit cards, for example, struggle to spread in emerging markets. What is special about alternative payment methods is the fact that they are safe to make payments, they are fast, and they avoid fraud. Another special feature is that they allow payments and transactions to be made without going through a bank.

Zotapay was born with its focus on emerging markets, to date, it is their largest market thanks to the knowledge developed over the years, especially compared to competitors. Zotapay strives to cover the needs of people in emerging countries by trying to integrate as many methods as possible, in addition to that they try to understand the specific needs of each country. For example, in Africa there are two problems: trust and volatility, so they have started using alternative payment methods. For many Americans and Europeans credit card is the most common tool, paradoxically in India, they use digital methods to pay. Credit cards in some countries have problems spreading for various reasons. The first is security, alternative methods then are more convenient and faster, credit cards require a lot of data to pay and to get bills or receipts, but alternative methods do not.

One thing to consider is also the mentality and legacy of different countries; in developing countries, there is much openness to technology and new solutions, while Europeans and Americans are more attached to what they already have. An example is the electric car, which has struggled to gain popularity in these countries. Additionally, in emerging countries, the youth population is much larger than the elderly population. Young people prefer to have everything on their phones and don't want to carry anything else around. Zotapay has a mobile-friendly interface precisely for this reason, in order to have everything at your fingertips is crucial in today's world. Young people from all countries often make purchases through mobile and social media. Many brands, in fact, sell on Instagram and TikTok . Payment infrastructure must adapt quickly to this change, and security must always come first. The #CVV code and #PIN were invented precisely to adapt to new behaviors. The problem with security, however, is that it also raises costs, and often customers end up paying.

Zotapay tries to increase efficiency by reducing the number of clicks to make a purchase and, using mobile phones, allows for more flexibility in terms of security. This way, it achieves faster speed, and more user-friendliness, and still maintains security through the use of mobile phones. There are a lot of digital natives in emerging countries; that's why alternative payment methods will continue to spread rapidly. Zotapay, therefore, wants to listen to the needs of these countries and create an easy and cross-functional tool that can be used by anyone, young or old, without any effort.

Even sellers can benefit from alternative payment methods. Firstly, Zotapay allows sellers and merchants to have an additional way of receiving payments and therefore making sales. Additionally, alternative methods are very flexible, the seller has full control over how to collect money, and disable/enable features, which is not possible with traditional methods. Zotapay, therefore, offers a stable, secure system, with a higher approval ratio thanks to the better experience of those who buy. In China, Zotapay has managed to spread thanks to the fact that it makes life easier for sellers. The difference between Zotapay is not only the integration but also the customer support and money management functionality offered to sellers.

Those who use Zotapay get more clicks, a higher approval ratio, and a better consumer experience. The money management functionality is something unique that Zotapay is rapidly developing because it meets a widespread need of merchants who want to manage money in various countries. It's a win-win for merchants, consumers, and Zotapay. Alternative payment methods are capable of reducing costs for merchants as well, and this is one of the main drivers of growth for both Zotapay and alternative payment methods.

Technology has evolved a lot in recent years, first serving only credit cards, now it's more open, and this has certainly been possible thanks to the rapid growth of crypto, which has opened people's minds. The more payment methods are integrated, the more alternative payment methods will grow and develop. Zotapay uses stablecoins, which is a system that allows reducing costs compared to a traditional bank, these new technologies are being developed and are making possible the digitalization of payments in a very secure and fast way. In addition, providers in the future will have to embrace this change because the world is heading in that direction, we want more stable, easier, and more accessible finance for everyone.

Alternative payment methods also manage to lower and make transactions of smaller amounts more accessible. The future of a cashless society is based on security, stability, and the needs of young people who increasingly prefer to buy online. If society changes its needs, payment methods will adapt to these new needs.

Article by Giovanni Scandroglio (Research Lead at FTS Group )

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