Companies can now offer crypto services without needing to build a complex blockchain infrastructure or having the need to go through lengthy licensing procedures by integrating Wallet as a Service (WaaS). This service facilitates institutions to access crypto products and services, by seamlessly integrating them into the consumer’s lifestyle at every step of the user’s journey.
WaaS Definition
Wallet as a Service is a highly secure and scalable crypto wallet infrastructure that provides organisations and institutions of all sizes the ability to integrate into their apps and platforms through APIs, customizable alternatives for managing crypto assets. Wallet as a Service allows users of third-party apps to create cryptocurrency wallets, and so, hold, receive and send crypto, and even access crypto-backed loans and services allowing them to earn using their crypto such as staking, savings accounts, and crypto-renting, all without leaving to an external site.
Benefits of Wallet as a Service
The first benefit of integrating a wallet service is time optimisation. Companies can achieve a faster service launch by partnering with a provider who has the software developed, only to make the necessary integration and not build their own blockchain connections. Together with this, a key point to highlight is that the virtual asset service provider (VASP) already has the proper compliance and regulations in place; which releases regulatory affairs effort and bureaucracy, as well as shortened execution time. It is worth noting that, as regulations vary depending on where the company’s operations are held, researching and verifying that legal requirements are met it is always advised.
Furthermore, with the integration, despite the backend being conducted by the VASP, companies can do a branded front-end and allow their users to access cryptocurrency services by embedding them into their applications, and in this way, not requiring redirecting to any third-party site and losing brand engagement.
This occurs as the integration is made through an API. API stands for Application Programming Interface and allows two different software components, a server (the one that sends information) and a client (the one that receives the response), to communicate through protocols and exchange data. Apart from being secure, by sending the information in complex and small packages of information, it is also seamless as data transfers happen automatically, without time-consuming manual input.
Another key benefit is that businesses can offer crypto and expand their target customer base by leveraging their current customers, and in this way, drive traffic and loyalty, open new revenue streams, and provide a broader service to their clients, keeping up to date with trends and new ways of financing.
Moreover, for already established traditional financial institutions, offering more services can strengthen their brand equity, interact further with the consumer, and access new touch points along their consumer journey. Naturally, a new offer increases business opportunities and allows organisations to gain insights into their customers' wants and needs.
Apart from the wallet core service, most WaaS give you access to an Exchange service too, meaning that users can hold, receive, and send cryptocurrencies, as well as buy and sell them inside the same platform.
Lastly, a cost-related benefit is that white label products allow companies to launch a new service without the high development costs and the constant maintenance of a secure system. Therefore, integrating WaaS may imply not only a faster and more robust service but also a cheaper one, overall bringing operational efficiency.
Additions to Wallet as a Service
On top of the already mentioned benefits, some providers offer extra integrations to complete and enhance the basic wallet offer. Nebeus, a European crypto-backed lending startup, besides its WaaS infrastructure, serves its B2B clients by allowing them to add two unique integrations:
Crypto-backed Loans API: This is a special feature not particularly common in the market, and what Nebeus does best. By adding this API, businesses will enable their customers to take crypto-baked loans with all the available assets in Nebeus. This means that companies will have access to Nebeus’s core product, offering their customers crypto-backed loans, with up to 80% Loan-to-Value and up to 36 months.
Earning API: Organisations can also improve their offering with Nebeus’s Earning products consisting of Crypto-Renting and Staking. With the first one, customers will have access to four different crypto-renting programs which offer up to 6.5% Annual Percentage Yield in crypto and up to 12.85% in stablecoins. For the second product, customers will have the possibility to stake over 23 crypto-assets (having more available every other week) and gain up to 7.5% Rewards per Year, taking their reward payout on a monthly basis.
Finally, when partnering with a wallet provider, companies can see upgrades such as coin additions or new features reflected in their own platform too. Thus, apart from reducing costs and time to develop the technology, businesses can benefit from the power of associating with a supplier with expertise in the industry and take advantage of the future improvements that they will implement to their software.
Conclusion
Ultimately, with a straightforward integration, Wallet as a Service enables companies from all industries to start offering complete crypto services without having to develop the technology or apply to pertinent regulations, enabling the client to think of all the Blockchain possibilities and provide their customers with added value and best user experience, while saving costs and boosting operational speed.
More educational content and industry insights can be found in Nebeus blog to understand the crypto world better and with it, take advantage of all the possibilities it brings into the financial ecosystem.
