How interoperability drives blockchain adoption

Anish JainCEO of blockchain-based payment ecosystem WadzPaysays PYMNTS how the combination of blockchain innovation with established systems is giving rise to the next revolution in the payments industry.

—

Innovation is best supported by a solid foundation in the traditional, according to Anish Jain, CEO of WadzPay. With more than 15 years of experience from Mastercard and American Express, Jain saw early on the potential for blockchain to revolutionize the payments industry by enabling faster payments, better security and a cheaper alternative that lowers barriers to financial inclusion. However, Rome was not built in a day, so any revolutionary payment system must be interoperable with the current one.

“We are trying to take advantage [blockchain’s benefits] in the technology we build, he said. “What we enable at the same time is not to rock the whole boat or the whole payment ecosystem.”

Founded in 2018 in Singapore, WadzPay partners with international payment processors and banks to enable digital and asset-based transaction processing and settlement. Interoperability is twofold, Jain explained. WadzPay connects to a bank’s mainframe ecosystem and becomes the default blockchain provider. This allows the financial institution (FI) to make use of any blockchain technology that exists or may appear in the future. The other interoperability it enables is between blockchains. The WadzPay chain has the ability to jump between different blockchain protocols and process transactions based on a specific FI’s or customer’s needs.

“The beauty of the WadzPay ecosystem is that it doesn’t just connect to one bank or market. It is a global system, which then gives access to different markets as well.”

This access is where WadzPay wins in several markets. Jain said that while central banks tend to distrust private institutions, they are learning — fast. WadzPay is establishing its roots through a series of programs with public institutions as well as commercial banks, payment service providers and large enterprises, and the discussions have been encouraging. What also helps are the new regulations. Jain said WadzPay is pro-regulations and wherever regulations emerge, they help drive the business.

“We are regulated in certain markets through the central bank, which also gives us much more credibility when working with public institutions,” he said. A state of “no regulation” is always bad. It creates uncertainty [and] a feeling of “We don’t know what to do.”

As a result of this collaboration, WadzPay’s presence is strong in Asia, which has taken a leading regulatory role in blockchain, as well as the Middle East and Africa. Already, Jain said, the landscape is changing.

“Last year, when we set up our Middle East business, our early customers were like, ‘Why are you here?'” he said. “Because this is something very new. This is exotic. So we were more of a “nice to have” product that a financial institution might offer. But today, because the market has changed, we are becoming a must.”

Jain said that one of the benefits of being a first mover in an industry is to gain perspective on how the market will move in the future. Global adoption of blockchain looks more and more possible.

“As a company we are very relevant in the Middle East, in Africa and in Asia,” he said. “Our 2023 goal is to become relevant in the Western Hemisphere. Blockchain is a beautiful technology and I’d like to see it become more mainstream.”