Alvière turns to Crypto-as-a-Service – LendIt Fintech News
Integrated finance is having a moment.
Over the past few years, the financial sector has seen an influx of non-financial companies turning to fintech solutions. Digital transformation has become essential for even the most established companies, and integrated finance is at the forefront of change.
A report commissioned by Alviere and conducted by Sapio Research in 2021 revealed a significant upward trend in integrated financial services.
Of the 205 US business leaders surveyed, 29% said they offer integrated financial services, while 51% plan to offer financial services within the next 12 months. Of those who had implemented the new technology, 90% said it had a positive effect on revenue per customer, while 85% reported an increase in customer retention.
The future looks bright for the sector. According to the Sapio report, the integrated finance market is estimated at $7 trillion in global annual revenue, including loans and insurance. This amount is expected to grow over the decade at a CAGR of 23.9%, with some predicting a nine-fold increase in the payments industry between 2020 and 2025.
Alviere, a leading integrated finance provider, announced a new partnership with Coinbase prime on March 24, 2022. The alliance between the two companies brings crypto service integration to Alviere’s integrated finance platform, The HIVE.
Alviere expands its product offering
Since its inception in 2017, Alviere has raised $90 million and partnered with companies such as Currencycloud and AutoPayPlus to further diversify their product offering.
Alviere enables any brand to provide financial services to its customers and employees.
“The idea is that whether you are a retailer, airline or telephone company, you can easily start providing financial services to your customers,” said Yuval Brisker, CEO and co-founder of Alviere.
“It’s a different approach than the rest of the integrated finance market, but our goal is to really go where the customers already are. We help improve existing business for existing customers, helping our partner customers increase revenue and visibility into customer behavior. »
The company offers a variety of integrated financing options aimed at helping the businesses that work with them retain a loyal customer base.
Products offered range from branded bank accounts and cards to global payments and payment processing options. The most recent addition allows the integration of cryptographic services.
Alviere’s HIVE is their software platform that allows easy integration of financial products. Protected by artificial intelligence fraud detection software and an identity management engine, the HIVE is powered by a high-speed ledger, making it easy to implement and manage access to branded financial products. .
“It is a very flexible, future-ready and easily accessible platform with robust publicly available APIs that allow any business we partner with to launch any type of financial service,” said Brisker.
Integrated finance rather than banking as a service
The company has chosen to focus more on delivering the integrated collaboration involved in integrated finance rather than just the technology framework associated with Banking-as-a-Service (BaaS).
“We are becoming a partner in day-to-day evolution,” he continued. “Our vision is that we are not just a technology provider, but a solutions partner. That’s why I like to say integrated; to me, embedded means more than just technology; it means how to trace the relationship between you and the company.
“We are here for the long term; we’re not just something you turn on and off and can easily replace by switching from one API to another. Alviere really helps you grow your business, increase your revenue, acquire new customers if that’s what you want to do, and provide service to existing customers.
This new development, integrating Crypto-as-a-Service (CaaS) into the HIVE platform with the partnership of Coinbase, opens a new horizon for Alviere.
Coinbase is one of the most recognized cryptocurrency exchange platforms in the world. Founded in 2012, it now has more than 89 million users. In the last quarter of last year, they reportedly generated $2.5 billion in net revenue. Bank of America noted that it expects diversification of the company’s revenue streams to accelerate through 2022 and beyond.
“Our partnership with Coinbase is about being the best, most compliant, and most regulatory-focused company in the world, a leader in providing the ability to buy, hold, and sell cryptocurrency” , Brisker said.
“It’s really about expanding our reach, expanding our capabilities, but doing it in a reliable way and will be seen by both our customers and their customers as the most secure and robust way to deliver cryptographic services in the market.”
Crypto as a Service
In 2021, the total crypto market capitalization reached $3 trillion and is expected to rise further through 2022. Media attention on digital assets has exploded and the topic is now firmly in the public eye. . CaaS allows any business to offer cryptocurrency services to its users.
“There has been a demand for crypto services,” Brisker said. “Despite the ups and downs in the market, the general trend has been to want to include some sort of crypto capabilities, its high demand and high potential.”
“We live in a world where everything changes at breakneck speed, and everything always revolves around the new and the best, across cultures and geographies. Technology has made this hunger to stay one step ahead a priority for people and businesses that serve people.
“I think when it comes to cryptocurrency, our customers, businesses that want to improve customer relationships and diversify their revenue streams, see it as a possible way to say they stay relevant and don’t take not late. Let them think of the future as well as the present.
By using CaaS, businesses can provide customers with a platform where they can buy, trade, and store cryptocurrencies. Brisker explained that as the most fundamental aspect of digital asset ownership, this is where Alviere sees the greatest demand for the service. It provides a platform for companies to offer services to clients wishing to invest in digital assets without looking elsewhere for the facility.
“For me, it’s all about choice and the desire to maintain long-term customer relationships and improve what you do for your customers. All the companies we talk to about it are really focused on that.
Cryptocurrencies too volatile for traditional payments?
Although Alviere’s new product currently stops at cryptocurrency ownership, they plan to expand it in the future.
“It’s more about ownership than about exchanging and moving the currency. This is a first phase to allow people to buy the currency, hold it and sell it. Ultimately, we will expand services beyond that,” Brisker said.
Countries are exploring central bank digital currencies, while retailers are beginning to offer crypto payments as an option for customers.
Earlier this year, accommodation platform Airbnb announced its investigation into the service, while other brands such as Starbucks explored different ways to provide the option. Brisker, however, believes it will take some time before the payment method becomes mainstream.
“The danger of crypto payments is volatility. Everyone wants to avoid inflation because no one wants something to cost them one thing one day and then something completely different the next.
“I think as long as cryptocurrencies are more volatile assets, people will invest in them more as an asset class rather than a stable value exchange. As long as it is, it will be harder to use it as a form of bidding to buy and sell things. »
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Isabelle is a creative project manager and freelance journalist with an honors bachelor’s degree in architecture and a master’s degree in photography and visual media.
With over five years in the art and design sector, Isabelle has worked on a variety of projects, writing for property development magazines and design websites, and managing art industry initiatives. She has made independent documentaries about artists and the esports industry and was involved in the production of BBC Two’s Venice Biennale: New British Voices.
Isabelle’s interest in fintech stems from a desire to understand the rapid digitization of society and the potential it holds, a topic she has addressed many times throughout her academic pursuits and career. of a journalist.