The end of Q2 2018 is looming and obviously, this is the moment all of our users and followers have been waiting for since January 5th, 2018, when our old card programme was suddenly closed.
Let us take this moment to give you a full breakdown of the upcoming card programme and how it differs from our past ones.
The state of the European card programme
Let’s start with the bad news. Sadly, we have to admit that we won’t be able to provide new cards for European residents before the deadline (end of Q2). And, first things first, we would like to apologise on behalf of the whole Cryptopay crew. Because our policy was, is, and always will be based on quality, transparency, achievement of the goals set and fulfilment of given promises. We didn’t manage to successfully implement the new card programme with all card issuers we had planned to do that by the end of June, thus breaking the promise we have given. And for that we are sorry.
And because of the situation, we have got ourselves in, we wish to explain in detail how all the card programme implementation procedures are organized, what problems were faced, and what’s planned to overcome these obstacles.
From the day our MasterCard programme got cancelled, our team began working on developing a new card programme under our own control. We want to offer people the Cryptopay Card. Our brand is at the centre of everything, from consumer need to the distribution of the product, and last but not least, the relationship with the customer. In order to avoid repetition of what happened with our Wave Crest-powered program, we have decided to take the long, tough road to gain full control over our own programme.
This means directly managing all stakeholders and combining all activities needed to operate a card program from end-to-end, thus providing a full-fledged, Cryptopay-customized card programme, which will bring the best value and satisfaction to our customers.
With the know-how and the experience of the Cryptopay team and its sister companies, we are able to deal confidently with all aspects of a card programme:
Today, Cryptopay as a platform already unites within itself a brand, cardholder portal, online KYC, support and an established transaction processing system. We already have an agreement with the best-in-class factory for the card production and a finalised card design.
Cryptopay has partnered and completed its integration with a global transaction processing company, who is behind the success of Revolut, Starling Bank, Curve, and Loot.
As for KYC, state of the art automated techniques have been and are being used for customer verification and risk management.
To be able to complete the launch of our new programme, we’ve partnered up and started working closely with a few card issuers working in different countries. We had negotiations with four card issuers for Europe, one for Russia and one for Asia. Fortunately for us, one of our ICO advisers is a Russian bank owner. But more on that later. One of the European issuers has already sent our application to VISA as well as Mastercard (they have changed some of their rules, so now it’s once again possible for us to have a card partnership with them). While we did start working with a select couple of these issuers, with the industry outlook brightening and more issuers ready to work with cryptocurrencies, we extended our search and are expecting approvals from a few of these partners. We’ll work with whichever finishes those preparations first. At the same time, we continue working on our South-East Asia card programme.
Fighting the System
Every card issuer has to mind risks: the ones associated overall with BIN Sponsorship/ card issuance and those associated with each specific project. Although Cryptopay is perfectly prepared in terms of compliance and AML procedures, in the eyes of the traditional players in the industry, cryptocurrencies carry a perceived higher risk. This necessitates being completely open and making sure that all processes in the company are transparent, compliant and organized in a legally correct manner. As mentioned above, Cryptopay operates one of the most sophisticated and advanced compliance and AML systems in the industry. Our team has spent all the time needed to explain our procedures to card issuers, card schemes and all our partners and we feel there is a growing understanding in everyone that Cryptopay operates in an exemplary fashion according to all relevant regulations and requirements. We can safely say that our tech and developers team have finished their work and from the technical perspective we are 100% ready to implement the new card programme — all we need is the final approval from one of our various issuing partners.
Having that said all of this let’s move to the good news.
There is one market, where we have already managed to complete this. As it was mentioned earlier, one of our ICO advisers is a Russian bank owner so this expedited the process of setting up our Russian card programme. We’ve signed a commercial agreement, successfully passed compliance procedures and due diligence procedures and we are technically ready to issue cards for Russia — the first stage for us getting Cryptopay cards back to the world. We have already started testing the first batch of cards, once we are sure that everything works smoothly, we’ll start offering them to the general public.
Light at the end of the tunnel
Understandably, this is not the state our followers expected us to be at this point in time, and we hope that we’ve managed to explain all the details of this complex process. We know how many people need us to provide cards, hence it remains our main priority to satisfy our customers’ needs.
And even though this situation may seem dismal at first glance, the reality is much brighter and our current progress is building a solid framework for successful developments in the immediate future.