Uldis Tēraudkalns, the CEO of Nexpay, a fintech scale-up that provides business banking solutions for digital companies, has shared his insights on payment trends, regulatory changes, and supporting technologies. He also discussed the impact of the new EU MiCA regulation on European fintech.
Nexpay, licensed by the Bank of Lithuania and operating across Europe, processes over €2.5 billion annually and has assisted over 600 businesses in building the future of money.
Tēraudkalns highlighted the importance of strategizing in the hybrid landscape between traditional fiat and crypto in the Web3 era. He also discussed the advantages of banks and Electronic Money Institutions (EMIs) for fintech startups in light of the decline of US banks.
Additionally, Tēraudkalns provided key considerations for businesses accepting crypto payments.
Nexpay’s journey began with a focus on delivering top-tier banking services tailored for the digital business landscape. The company offers business payment accounts and has developed an API that seamlessly integrates with businesses’ systems, providing access to a diverse suite of payment, account, and financial tools.
Nexpay offers IBAN accounts with SEPA transfers and has recently expanded its services to include SWIFT payments across 23 currencies. This expansion reflects Nexpay’s commitment to pioneering safe, efficient, and innovative financial solutions.
Compared to traditional banking, Nexpay positions itself as a provider of banking services rather than a traditional bank. It focuses on API integration and transactional services, assisting over 400 businesses in shaping the future of finance.
Tēraudkalns emphasized the advantages of the emerging transactional banking model, highlighting its simplicity, cost-effectiveness, and focus on secure and straightforward payments. He also discussed the vulnerabilities faced by traditional banks and the window of opportunity for fintech startups, particularly EMIs.
The new EU MiCA regulation, aimed at creating a holistic regulatory landscape for digital-asset issuers, was seen by Tēraudkalns as a long-desired regulation that enhances legal clarity and transparency. He discussed the implications of MiCA for European fintech, including the opportunities it presents for licensed crypto enterprises to access the single market.
Regarding the fusion of traditional fiat and crypto in the Web3 era, Tēraudkalns believes that both will coexist, and businesses that offer a seamless transition between the two will lead the way. He highlighted the potential of stablecoins to mitigate the volatility risks associated with crypto. Ultimately, he sees the future of finance as an integration of traditional finance and crypto.
In terms of cross-border payments, Tēraudkalns noted the rapid evolution driven by emerging technologies such as blockchain, digital wallets, and cryptocurrencies. Fintech solutions like Revolut, Wise, and Stripe are challenging traditional banking models by offering faster transactions, lower fees, and seamless API integrations. He also highlighted the role of artificial intelligence and blockchain in revolutionizing payment processes and reducing costs. Tēraudkalns expects evolving regulations to drive the adoption of cutting-edge technology and streamlined processes in the cross-border payments space.
Overall, Tēraudkalns sees the future of finance leaning towards safety, affordability, and efficiency, positioning fintechs as key players in a digitally-driven economy.
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