With 1.7bn adults still unbanked and without access to modern financial services, and traditional financial systems provoking high levels of millennial mistrust, Edinburgh-based crypto wallet Zumo set out to create a new proposition, one that brings the benefits of cryptocurrencies and blockchain to ordinary people.
By creating an accessible, inclusive and, above all, useful platform, Zumo would give today’s consumers ownership and control of their money, regardless of their individual financial circumstance.
But, providing a seamless fiat payments experience for digital currency investing can be challenging. In order to fulfil its ambition of making the interaction between crypto and traditional currency a trusted and integral part of everyday financial life, Zumo knew it needed a reliable payments partner to provide its customers with access to fiat payment rails.
Enter Modulr, the agile, API-enabled payments alternative to the traditional banking infrastructure, which is helping Zumo realise its vision of a new fiscal democracy.
“When we set up Zumo, we imagined an alternative to the financial mainstream, a system that was simpler, faster, more transparent and crucially, usable for ordinary people. But, we realised early on that mass adoption was never going to happen unless we had an easy bridge between the new world and the old. Modulr has given us flexible, reliable, API-enabled access to UK payments schemes and GBP functionality, and this has been key to launching a seamless fiat-to-cryptocurrency payments system,” says Zumo CEO, Nick Jones.
Fiat Money and Cryptocurrency Working Seamlessly - How Zumo is using Modulr
In Modulr, Zumo has found a partner that understands the demands of the crypto industry and can deliver the secure, scalable payments platform that it needs to build its proposition.
Leveraging Modulr’s EMI licence, Zumo can now set up an unlimited number of eMoney accounts, within seconds (subject to KYC), giving each customer an easy-to-use fiat on/off ramp and an eMoney account that is fully integrated into UK payment schemes, including Faster Payments. The platform allows for crypto-to-fiat withdrawals, meaning customers can instantly withdraw cash from their account in near real time, 24/7, unconstrained by the limitations of traditional banking hours.
The App converts Bitcoin or Ether to pounds sterling, or vice versa, and as the Zumo wallet is non-custodial, only customers have access to their private keys.
Zumo keeps its customers’ funds protected in line with E-Money Regulations, with fiat deposits held and safeguarded with Modulr, in ringfenced accounts at the Bank of England.
By partnering with Modulr, Zumo is able to offer a safer way to invest in crypto, on a platform that can be used to make investing in digital currency available to anyone.
A card programme designed for Zumo’s Crypto-curious
Thanks to Modulr’s card issuing API, Zumo has become the first non-custodial crypto wallet to offer users the ability to hold GBP in their account, to then spend with a virtual Visa card.
Harnessing Modulr’s existing relationships and status as a principal issuing member of Visa, Zumo has been able to avoid the traditional complexities, costs and challenges of building and operating a card programme. This proven, full-stack solution gives Zumo access to the very latest in modern issuing features, straight out of the box, enabling it to differentiate its proposition by offering virtual cards now, to be followed by a physical convertible contactless debit card, later in the year.
Using the Zumo virtual card, its users can easily switch from GBP to cryptocurrencies and back, before spending online.
Speaking about this landmark moment for the brand, Nick Jones said: “This marks a huge step forward for us and our customers. The launch of our virtual card will help to make people get comfortable with crypto. Our customers can now easily buy, hold and exchange cryptocurrency in the Zumo app, whilst spending cash using a Visa debit card.
“We hope that the familiarity of a debit card will help to introduce new people to cryptocurrencies and help their ascent into the mainstream. Zumo’s Virtual Card bridges the old world of traditional money with the new world of smart money.
“Safe, simple and secure is the core of the brand’s purpose. Which is exactly what this new product is about.”
Crypto Wallets – Designed by Zumo, powered by Modulr
Modulr’s API-first platform was designed to deliver seamless and truly valuable solutions to its clients to address the complexity of their payment operations. In this innovative use case, Modulr technology has enabled Zumo to deliver a wallet and payments platform that makes its customers’ fiat money and cryptocurrency work seamlessly and safely together, complete with a virtual card for added convenience, all powered by Modulr.