Figure taps Visa DPS for banking in a box platform

The move underscores increasing interest in blockchain-based payment rails

by | August 11, 2022 | bobsguide

Figure Technologies, a blockchain-based lending start-up, has partnered with Visa to add issuing processing services to Figure’s online banking service.

Figure will tap into Visa Debt Processing Solutions (DPS) as the core component of the start-up’s banking in a box platform.

The API platform allows Figure Pay customers to add eligible deposit accounts, payments, and cards to any existing online retail, fintech or banking offerings.

With the partnership, the start-up will look to establish its banking in a box offering among consumers, small businesses, and community banks.

Figure’s platform is built on Provenance, an open-source blockchain which replaces a traditional core banking system. It easily integrates with Visa, ACH, and rewards platforms.

The service also allows its partners’ customers to authorize against cash balances, reward balances or invoke buy now pay later on any transactions when approved for credit.

According to the company’s website, its platform is currently available to fintech and nonbank lenders, providing them with embedded banking and payment solutions for its consumer and business products. It intends to expand its services to banks, credit unions and retailers in the near future.

Firms begin to welcome blockchain technology in payments

Figure’s foray into blockchain-based payments highlights the increasing interest in the decentralised technology in the financial industry.

In a 2020 report on blockchain, PwC economists forecasted blockchain to boost global GDP by $1.76 trillion by 2030.

As highlighted by PwC in the report, blockchain’s potential to “create, store and share sensitive information online” in a safe and secured way has encouraged firms to investigate its potential use cases, including in the payments space.

Banco Santander was among the first financial firms to leverage the technology in the payment space, partnering with Ripple in 2018 to use the latter’s blockchain-based software to launch One Pay FX, a mobile app for international payments.

In December 2021, HSBC and Wells Fargo tapped into a blockchain-based solution for the netting and settlement of matched foreign exchange transactions. Initially focused on US dollar, Canadian dollar, British pound sterling and Euro transactions, the two firms plan to extend the platform to settle additional currencies.

The wider acceptance of the decentralised technology in the payments space has also presented blockchain-based technology providers to grow.

Last week, blockchain-based payments platform PayStand expanded its LATAM footprint with the acquisition of Yaydoo, a financial automation technology company.

Ripple is also reportedly in the market contemplating the potential acquisition of bankrupt crypto lender Celsius Network as part of its strategy to scale its business.

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