CrossTech Magazine - LATAM Teaser by crosstech

CrossTech THE MAGAZINE OF THE CROSS BORDER PAYMENTS INDUSTRY CRYPTO START TIME TO CHANGE SPECIAL INFOGRAPHIC|

CROSSTECH, WEBINARS AND EVENTS

São Paulo, BRAZIL | APRIL 26-27

CROSSTECH 1Q - 2022|

OPPORTUNITIES IN LATIN AMERICA

FINTEL INSIGHTS|

THE MOMENT TO BECOME DIGITAL 1Q 2022

AROUND THE GLOBE

EDITOR’S LETTER

Hugo Cuevas-Mohr President and CEO of Mohr World Consulting, a consultancy based in Miami, Florida. Hugo has worked in the money transfer industry since 1987 for a family company that became one of the leaders of the remittance industry in Latin America.

EDITOR’S LETTER

EDITOR Hugo Cuevas-Mohr CO-EDITOR Priscilla D’Oliveira Friedman WEB EDITOR Virginia Martínez DIGITAL PRODUCT MANAGER Ana González CREATIVE MANAGER Carolina Busnelli CONTACT US AT María Auxiliadora García help@crosstechpayments.com

The Digital Currency Revolution is Here! We are extremely excited to launch our CrossTech Magazine Teaser; this is our first edition and we are honored and delighted to share with our community and partners the most relevant and interesting insights about our industry f rom those that drive change and evolution; the CrossTech leadership team and the industry -leading experts; on the latest innovations, products and services. On our monthly digital editions we will showcase topics that impact the market for incoming and outgoing remittances, B2B, B2C payments, fintech, and all exchange and currency movement activities. In this issue we parared and selected content to study and analyze the Digital Currency Revolution due to the recent Bank of England’s initiative to explore the viability of its own Central Bank Digital Currency that changed the international decentralized perception of digital currencies. This phenomenon led the way for Central Banks around the world to consider this financial exploration, such is the case of Brazil; that expects to make cryptocurrencies

The views and opinions expressed in this magazine are those of the authors and contributors and do not necessarily reflect the position of CrossTech, The Platinum Network or IMTC. The content here is for informational purposes only and should not be taken as investment, business, co mp lian ce, or lega l advi ce. Co n ten t contained within this publication is not to be reproduced in whole or part without the prior written consent of the company. We welcome quotes of our articles by mentioning “CrossTech Magazine” or #crosstech and share the quote with us using our social media channels.

transparent so that consumers and businesses are comfortable with using them becoming a powerful force to obtain financial inclusion and eventually embody the promise of a modern, tech-based economy. Learn more about this topic and more in our CrossTech Magazine Teaser edition as we explore INCLUDE CRYPTO MAGAZINE TOPICS to have a deep dive of what are the new transformations revolutionizing our industry. We hope you enjoy this issue and also analyze a different perspective into the constant-changing world of cross border payments and remittances..

Hugo Cuevas Mohr CEO & Founder

NEXT ISSUE APRIL

CONTENTS

2022

SPONSOR OUR NEXT PRINTED EDITION FIRST 2022 PRINTED EDITION FOR CROSSTECH LATAM ADVERTISING | COLLABORATIONS | LEADERS OF OPINION | BE IN OUR COVER

AROUND THE GLOBE The moment to become digital o Page 4

CRYPTO START The moment to become digital o

OPPORTUNITIES IN LATIN AMERICA What are the following steps to be part of the Cross Border Payments revolution on time? Page 8

Page 6

CROSSTECH INTERVENTIONS Participation on webinars and events on 1Q - 2022 o Page 13

WORLD 2021 Panels with insights for the industry in 2022 o Page 18

SPONSORS

AGENDA

TRADE FAIR

SPEAKERS

HOTEL MAP

TEAM

AROUND THE GLOBE

2022

The moment to become digital Executives of the biggest companies of money transfers and Cross Border payments around the world agree on one thing when looking at the 2020 industry transformation: “The future is digitalization”

Priscilla D’Oliveira

wo years after the change of the dynamics in this f ield, the main thing for this scheme to be successful is f inancial inclusion and education. As f inancial services spread worldwide to reach even the most vulnerable populations, CEOs understand the need to give clients access to services and also bring technological solutions, whether it is through a cellphone, a computer, or an ATM, with a particular focus on people f rom rural areas that have limited access to resources. Being an industry that directly impacts families, these families are key to the process. For companies, the responsibility

relies on creating good digital products that enhance the user experience and make it easy for the benef iciaries to open an account without all the paperwork to sign contracts, instead, investing time on helping them on how to use their money wisely. 2022 is promising to be the year when companies establish the new dynamics born in the two previous pandemic years. This year, the industry will turn into a combination of virtual playground and compliance lab; since the introduction of digital wallets, the fast-growing market of f intech and the adoption of blockchain technology protocols are boosting it up. 4

NUMBER OF CRYPTOCURRENCIES WORLDWIDE

12,500

10,000

7,500

5,000

2,500

2013

2014

2015

2016

2017

2018 Mar

2019 Nov

2021 Feb

2021 Jul

2021 Aug

2021 Oct

2021 Nov

2022 Jan

2022 Feb

CRYPTOCURRENCIES IN THE MAP The interest for Cryptocurrencies it’s been growing in a way never seen before in other markets, the growth of this assests has been exponential since the begining and it will become more valued after the regulations that allows companies to make safe transactions, opening space for adoption and at the same time making Crypto more available for people. Although the market is not there yet, the use of Cryptocurrencies for Cross Border payments and remittances is not happening as fast as the adoption. An example of this is Banking institutions, digital wallets, and trust funds adding Crypto to their portfolio of products and preparing the market for massive adoption. Another case study is El Salvador, with the adoption of Bitcoin as a currency of common use in the country. Nevertheless, it has turned to Binance exchange for support in implementing Bitcoin as legal tender and the issuance of

The problem that companies are addressing is how to give easy access to clients to a bank account and become digital, especially to those with no infrastructure in their countries

Main Challenges The use of digital money instead of cash The use of formal channels instead of informal channels to send money Bitcoin bunds. Since there is skepticism f rom customers, the gradual evolution f rom Fiat to digital assets is mandatory before a complete digital transformation. 5

o o o M e h t

CRYPTO START!

TIME TO CHANGE

o T

llo

s he

te es

bec ps,

Cry ome a

THE FINANCIAL WORLD IS CHANGING, AND OUR PAYMENTS ARE CHANGING TOO! Fiat is no longer the only way to store and use money; now we have Cryptocurrencies. Crypto is available anytime, anywhere in the world. It is not physical money but digital money stored in the blockchain

BLOCKCHAIN IS A SPECIFIC TYPE OF DATABASE

Hugo Cuevas-Mohr

t differs f rom a typical database in storing information; data is recorded in blocks, these blocks are chained together using cryptography. As new data comes in, it is entered into a new block. Once the block fills up with data, it is chained onto the previous block, chaining it together in chronological order. This group of blocks form a layer; when this layer is complete, a new one will start on top, with the first block of the current layer, making 6

it impossible to change the information which is already stored. That is the reason why it is secure. You need an account on a reliable exchange to buy cryptos, such as Binance or Bitso. Remember, the Crypto world is not regulated, and everything is based on speculations until proven otherwise. So, the best thing you should know is that you must be careful about where to buy and how to access your account.

oooooo

ypto exper t

, an d

enj

SPECIAL FEATURE

We have a workshop you might want to learn from

GET INFO

| TRADE

| EARN Once you follow the security steps, the rest is a piece of Crypto cake or, even better, a Crypto Bakery, since there are many options to invest in, also many ways to earn more crypto, i. e.,

| SAFETY

| ACCOUNT When opening an account on any Crypto exchange, you have to validate it and set a Two Factor Authentication (2FA) like Authy. Authy is a 2FA to validate your identity before logging into your account, available for Apple and Android devices

Set your antiphishing code; this is a code you enter when validating your account. It will appear in every e-mail you receive from your exchange, so you know it is a valid e-mail address, and you don’t get fooled by a hacker trying to steal your Cryptos

Now that you know how to create a secure account to invest in Crypto, the next thing is to learn how to sell and trade among other options, you might discover in your race to become a Crypto expert, each full of opportunities and a world of learning

Staking

The process of locking up crypto holdings to earn interest

Launchpool

Stake your Crypto and earn interests in the form of new tokens

FINTEL INSIGHTS

OPPORTUNITIES Jennifer Holguín

IN LATIN AMERICA

What are the following steps to be part of the Cross Border Payments revolution on time?

ight now, technology is the difference between traditional banking and new banking that is being born after the pandemic institutions are centering the focus of the operations on product development based on peoples needs and alliances that help grow the operations in a faster way because the time is now, as competitiveness is a signif icant factor to stay in the market. Before, we had an industry centered on assuring the operation by validating a client’s records; now, the center of the operation is people, what they consume, how they consume, and why they consume these products. From this perspective, companies have an opportunity to reinvent the offer by developing products that are accurate with the actual needs of the client, looking to satisfy the client before anything else, and thus looking to make strategic alliances that allow meeting these needs on time.

CROSS BORDER

This way, we have a variety of products that are being offered to bring essential solutions such as:

LATAM MARKET

Digital bank accounts: a person can open an account f rom mobile without paperwork

Remittances to LATAM are a matter of families depending on this “Commodity” and technology is crucial to the process,

ATM cashback remittances services: with a call center service to guide the benef iciary through the whole process to make it easy for them and assure they have a better product experience and, in some cases, including extra benef its thanks to alliances

becoming

Digital f inancial ecosystems: including digital wallets and prepaid cards as solution to access payments

disappear

responsibility

the

institutions to create great technology to land great services to the benef iciaries for them to collect their money in the easiest way possible. The

insights

about

the

future

payments are a tendency for cash to and

the

adoption

code payments. In such case, QR code systems are a promise that will bring many solutions and opportunities to

Payments through a bank deposit to any bank in a country

address

markets

vulnerabilities,

i.e.,

offering small stores the option not to use cash and have a safer operation, or

QR code paying systems

even institutions may use it as a tool to Deposit cash in a store to a bank account

support the government to grow the economy. The applications are multiple, and the outreach can suit many needs in

“All of this is possible because alliances accelerate the process by leveraging the activities on these third parties’ expertise and saving the time needed to keep innovating”

the

social

f ield.

Companies

are

committed to being responsible and are working on these solutions. A clear example is the growth of the outbound business, f inding alternatives to Swift that are cheaper, faster, and secure. As institutions f inancially include more people, more opportunities will come out.

Looking to make alliances & Networking? Come to our next CrossTech Conference in LATAM, in Sao Paulo, Brazil April 26-27, for the best Networking event of the región. 9

AGENDA

Apr 26-27

Jun 21-22

Nov 15-17

SPECIAL FEATURE

CrossTech on 1Q of 2022 Around the world

Priscilla and Hugo peaking in a free training cycle of @ ConnectAmericas and IDB, Ruta de la #PymeExportadora. Topics help SMEs adopt tools to analyze, adapt and expand their potential for trade and integration on a global projection. LEARN MORE

HUGO CUEVAS-MOHR 2021 INSIGHTS

RemitONE celebrated IPR Innovation in Payments and Remittances on March, and is On-Deman now Don´t miss a moment! Catch up with all the previously aired content f rom innovation in Payments & Remittances EMEA 2022

RemitOne webinar 2022 Watch on Demand

Q&A PRISCILLA D’OLIVEIRA PARTICIPATION ON PANEL “BETTER TOGETHER: THE CROSS BORDER REMITTANCES ECOSYSTEM“ RO. How significant is the remittance industry? Who are the traditional and new players in the remittance ecosystem? P. The remittance company has transformed rapidly in the last 5 years and is becoming more digital. Regarding market size and to alliedmarketresearch.com. the global

WE B I N A R

remittance market was valued at $701.93 billion in 2020

PRISCILLA D’OLIVEIRA

and is projected to reach $1.2 Billion by 2030. With this new transformation and globalization specifically during

COO, CrossTech

the pandemic, many money transmittance service providers had to focus on digital remittances to enhance their business and provide faster transactions to clients (P2P).

RO. What are the developing trends within our ecosystem, and what is RaaS?

Agents are also providing services digitally to their clients. But the industry has become much more than

P. The developing trend of the industry is why build

remittances with new services such as B2C fueled by the

if you can buy. Innovation is improving the money

“Gig Economy” and B2B, fueled by eCommerce. Those

transfer business. The rise in mobile-based payment

markets are 10 to 20 times larger than remittances and

channels and cross-border transactions and decrease

money transfer providers are using their technology and

in remittance transfer time & cost drives the growth

experience to grow in these new segments.

of the market. White label solutions and digitalization utilizing API integrated tools are saving companies

From a personal perspective as a LATINA, I am a big

the trial of failure and linking them to get licensed in

believer in helping immigrants and that has always been

multiple states along with operating in a quick and

a passion to support this industry, how we continue to

efficient manner not losing their brand presence.

move funds to these markets to help society prosper and our “native” society receive some of our achievements

RaaS (Remittance as a Service)- is a go-to solution

in “our” own country. To back up this sentiment, as you

for many MSB, FinTechs, and small businesses and is

know sometimes 60 to 70% of a poor family’s income is

a solution that we recommend for our clients in our

primarily derived from remittances. This is a mission that any immigrant should defend in the industry.

consulting division. There are different RaaS solutions,

Now, let’s discuss traditional and new players in the

licensing and reporting, some are now providing

remittance ecosystem. To name a few: the traditional

banking rails too. RemitOne is a great example of a

players in the market are MoneyGram, RIA (Euronet),

RaaS technology providers solution.

some are only technology providers, some also provide

Western Union and some of the new players are Wise, Azimo and Currencies Direct. As I navigate in this

The idea of partnering with not only a producer but

industry, I learn every day new FinTechs are coming

manager of a white label service means reducing costs

into the market with new solutions involving money

from software maintenance and servicing, businesses

transfer, digital banks, and many more. The crypto

can focus their capital on marketing and customer

industry is slowly but surely making gains partnering

service while trusting that their partners have the

with the industry.

experience and know-how on the product.

SPECIAL FEATURE

“There are different RaaS solutions, some are only technology providers, some also provide licensing and reporting, some are now providing banking rails too. RemitOne is a great example of a RaaS technology providers solution”