After Juanjo’s introduction and welcome to the participants, David highlighted Fernando’s background in the FinTech world. Taking advantage of the occasion, he talked about his facet as a serial entrepreneur to encourage him to share his secret to success.
First, David asked him about the beginnings of Devengo, an instant payment API that automates customers’ transactions in Europe and the UK.
Fernando highlighted the importance of his team, starting with his partner Alberto “Molpe”, “the person who knows most about payments”, to continue explaining more technical aspects of the tool:
“It is used to issue payments using the SCT Inst protocols throughout the UE and also Faster Payment to provide coverage in the UK. It is a tool that allows you to receive notifications and find out what is happening with the payments you issue. We incorporate all possible data likely to be included in the banking scheme. Even more information than obtained via Open Banking”.About Devengo app
Technology-based companies that bet on instant payments
Our CEO then wanted to learn more about the verticals they are targeting and their use cases. Fernando highlighted two main types within his ICP (ideal customer profiles).
- A first group made up of technology-based companies that have back-ends –so they are able to integrate APIs– and whose value proposition is payments.
- The second group would be made up of other FinTechs. As a curious aspect of this vertical, he mentioned that it is a “B2B raised to n”, being able to generate practically infinite chains of companies that provide services to other companies.
David mentioned that it is an alternative method for FinTechs to add value to their customers. Our guest agreed:
“It’s something that makes your value proposition more powerful. Because as a payment initiator, merchants can be satisfied, but what happens when they have a return and don’t have a proper protocol? We orchestrate an instant return, for the desired amount, to the client’s account”.
How the future of digital payment looks like
After participating in Money 20/20 last year in Amsterdam, David received feedback from several banking clients on the growing importance of the event in general and the digital payments in particular.
“There has been a lot of talk about payment by QR… What can we expect from the payment industry in the future?” asked our CEO.
Fernando focuses on the European context, indicating that, in the case of card payments, we are seeing how money traces an indirect path to the merchant and how we are witnessing “the most successful duopoly in the history of humanity”, formed by Visa and Mastercard.
“The journey that money takes when you pay with a card is anything but direct, although it ends up reaching the seller’s account. What is coming in Europe is direct payment. Within this category we find Bizum, the initiation of punctual or recurring payment, payment by QR, etc.”
“It is something that, in addition, is being promoted at a political level. The war for sovereignty in the world of payments –or for monetary sovereignty– is going to play a relevant role between States”. Regarding the use cases, it can be applied to companies that hire remotely and people hired remotely, for example. This leads us to the application of digital currencies issued by central banks.”Assured the CEO of Devengo.
“The digitization of money will have profound implications at a geostrategic level.”
It was at that moment that David took the opportunity to launch another question: “And what will happen to cryptocurrencies?“
Digital money and cryptocurrencies, waiting for regulation
With the imminent launch of the digital euro, issued by the ECB, or the already tested digital yuan, issued by the Chinese Central Bank, questions about monetary sovereignty arise and we must pay close attention.
What if China is suddenly able to convince its suppliers in Africa to accept digital yuan as payment for invoices sent to them?
What potential impact could digital payments issued by a central bank other than the US Federal Reserve have on becoming accepted in significant amounts? Well, that has very profound implications.”
“Of course. –David commented– There are also many people who say:
But we do have Bitcoin, why can’t we use it as a payment method?
“It is a digital asset, but the vast majority of cryptocurrencies are not prepared yet to be a payment method. Not until we have a digital file backed by the European Central Bank.”
Both agreed that, until they are regulated, they will continue to function solely as a store of value.
The role of artificial intelligence in the digital payment sector
At that moment, Juanjo joined again to ask a question that has become habitual at the end of our Meets:
“Which technology do you think will change the financial industry in the next five years?”
Our guest made a bet in the short and medium term:
“I would highlight atomization and apification. And when I say atomization I am referring to the atomic visibility of the flows in real time. That is where apification is a key condition. It has enormous potential for transformation, so that –using it– very diverse value propositions can be built”.Concluded Fernando Cabello
David took the opportunity to highlight the role that GPT Chat is having in the sector. Everyone agreed that the topic would lead to another webinar, entitled, for example: “How can artificial intelligence be applied to financial markets?“. The truth is that they came up with a lot of use cases. If you want to discover them and find out what were the greatest learnings of this Business Angel throughout his career, access the complete Meets that is embedded above.
It has been a pleasure to enjoy the knowledge, authenticity and charisma of Fernando Cabello-Astolfi. We feel very grateful for his visit and we also want to thank you for being there, accompanying us.
See you soon!