An Integrated Future: an Introduction to NAKA’s Vision


An Integrated Future: an Introduction to NAKA’s Vision

Traditional systems alone are leaving billions of people unbanked and underserved, and decentralization must be part of the answer.

The need for a comprehensive payment approach is urgent in the modern digital economy. Traditional payment systems lack the flexibility and efficiency desired by consumers and businesses, and in some areas of the globe, well over 50% of the population are getting left behind entirely. While AI and other fintech innovations may be part of the problem, blockchain and cryptocurrency offer faster processing, lower fees, and decentralized control. NAKA’s vision is simple: a world where the best solutions for the best use-cases combine to create the widest possible coverage for the simple financial services that are at the base of our shared lives.

NAKA aims to bridge the divide between the new possibilities offered by Web3 technologies and the established practices of traditional finance. By adopting a holistic view, NAKA seeks to optimize the payments landscape not by replacing existing systems but by integrating them, ensuring that innovations in payment processing can be quickly adopted both online and in physical stores with minimum effort from all parts involved. This approach not only addresses the gaps in current systems but also anticipates the future needs of a global economy increasingly reliant on digital transactions.

High inflation and lack of coverage from traditional institutions have left large swathes of the population unbanked or underbanked. Some markets are in desperate need of better tools to ensure remittances and access. We are equipping businesses with the technology to overcome these issues.

Of course, none of this can be achieved without NAKA's commitment to security and regulatory compliance. Anywhere NAKA’s solution enters, all measures are taken to ensure that a holistic payment solution is built on a foundation of trust and reliability. NAKA is the best of both worlds. Full integration into the demands of traditional systems with the speed, reliability and economic advantages of a decentralized payment network that removes middlemen. We are building the tools to give people financial freedom.

Compatibility Is Key

At the heart of NAKA's vision for a more integrated financial future is its commitment to EMV compatibility. EMV, short for Europay, Mastercard, and VISA, is a critical standard in the payment industry that ensures interoperability and security across global payment networks. This compatibility ensures that anyone that chooses to run NAKA’s Network will only be adding a new form of payments to the global standard that most everyone else is already using.

The vast majority of credit and debit cards will remain an option, and the software is devised to not require any installation of hardware or added training for staff. The definition of a win-win.

Moreover, by adhering to EMV standards, NAKA positions itself as a reliable and secure platform for merchants and consumers alike, encouraging adoption by those who value the proven security features and global acceptance of EMV-compliant cards. Innovation with no risk.

Whoever prefers and has access to traditional solutions is free to continue operating, business as usual, but the door is now open to the future.

A Solution that Works

NAKA's integrated financial solutions are designed to cater to a wide array of adopters, ranging from individuals and businesses in emerging markets to sectors historically underserved by traditional financial institutions. There are a number of clear examples where the advantages are immediate and obvious.

NAKA’s Ecosystem includes two main components: the NAKA Card and the NAKA Network.

The NAKA Card is a revolutionary payment card that is fully customizable and decentralized. It can be connected to either a custodial or non-custodial wallet, giving businesses the flexibility to issue the card themselves, some of its benefits are particularly needed in regions like LATAM, suffering from high inflation and home to large numbers of underbanked people.

Some of its main advantages for issuers:

  • Accepted worldwide at all participating EMV terminals, allowing for convenient payments;
  • No need for banking licenses or a core-banking platform;
  • Real-time conversion from any tokenised asset for ease of use;
  • Blockchain-enhanced security;
  • Fully customisable by issuer to allow for value-added services and loyalty programs;
  • Empower local communities by cutting out middlemen and fees and creating local closed-loop payment networks.

The NAKA Network is the backbone of the NAKA Card, ensuring its security, efficiency, and compatibility with existing infrastructure. It will be initially deployed on the Polygon blockchain, with a vision to become multichain in the future. It will always be fully compatible with EMV standards, allowing it to be used virtually anywhere that accepts major payment networks like Europay, Visa, Mastercard, and others.

Acquirers that choose to install the Network have clear advantages as well:

  • Same or next-day settlements;
  • Reward system for acquirers, as well as market exposure;
  • Fully compliant with PCI DSS for full-proof security;
  • EMV compatible, so no loss of business or versatility;
  • Compatible with all modern POS systems, so no need for investment in hardware or training;
  • Accept NAKA Cards at significantly lower fees compared to traditional players;
  • Empower Card issuers in your community to grow their businesses and your local economy;
  • Expand your reach to everyone, allowing access to your products and services even to the unbanked and underbanked.

Traditional systems are hard to change. Their business practices are entrenched and they often choose to not engage with situations that are untested or they are unfamiliar with. This has created gaps in the market that can be overcome with technology.

Solving for the Unbanked

For the vast unbanked populations, particularly in regions where traditional banking infrastructure is scarce or non-existent, NAKA offers a tangible path for financial empowerment. By bypassing conventional banking requirements while always keeping in compliance with logal regulations, NAKA's blockchain-based solutions provide these individuals with the tools necessary for engaging in economic activities that were previously out of reach.

  • Digital Wallets for Basic Financial Services: NAKA's digital wallet allows users to store, manage, and transact with digital currencies without needing a bank account. This can be particularly transformative in regions like LATAM, where banking services are often unavailable.
  • An Endlessly Customizable NAKA Card: Through smart contract technology, NAKA can ensure that the funds contained in the digital wallet can be used in participating brick and mortar stores, public services, and pretty much any regular POS for easy payments without any need for a bank account.
  • Empowering Local Economies: NAKA offers not only the card, but also the network. By enabling local merchants to accept crypto, alongside digital payments and any EMV compatible card, NAKA allows businesses within heavily underbanked communities to cater to all their customers. This can lead to a virtuous cycle of economic activity, where local businesses thrive, and residents have greater access to goods and services. All of this while demanding no blockchain knowledge from users.

Security and Compliance are the Backbone of NAKA

If NAKA wants to operate within the same parameters of traditional finance, security and compliance are not just features but foundational pillars. NAKA's commitment to these aspects is absolute.

  • Adherence to Global Standards: NAKA ensures compliance with critical security standards such as EMV for card transactions and PCI DSS for safeguarding cardholder data. This compliance is crucial for interoperability with the global financial ecosystem and for maintaining user trust.
  • Robust Security Protocols: Leveraging the inherent security features of blockchain, such as encryption and decentralized ledger technology, NAKA enhances the integrity and confidentiality of transactions. These measures protect against fraud and unauthorized access, ensuring that users' financial information and assets are secure.
  • Built within MiCA and TFR frameworks: Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA) and Regulation (EU) 2023/1113, also known as TFR, are the new European standards for crypto and Web3. The NAKA network has been built to fully encompass their licensing structure and the ability to provide supervisory information to the regulators where applicable.
  • Decentralization with Guarantees: The NAKA network is decentralized and provides individuals with the ability to self-custody their funds. Relevant safeguards are, however, in place to prevent the risks that could entail, such as money laundering or terrorist financing.
  • Regular Audits and Updates: To maintain its security posture, NAKA undergoes regular audits and updates its systems to address emerging vulnerabilities. This proactive approach to security ensures that NAKA's infrastructure remains resilient against evolving cyber threats.
  • Transparent and Secure Transactions: Utilizing smart contracts, NAKA offers transparent and verifiable transactions, which are crucial for building trust within its ecosystem. This transparency ensures that users can confidently participate in the financial services offered by NAKA.
  • User-Centric Security Measures: NAKA empowers its clients with tools and features that enhance their control over their financial assets, such as secure wallets and user-friendly interfaces for monitoring transactions. These user-centric measures are vital for fostering a secure and inclusive financial environment.

NAKA's dedication to security and compliance underscores its vision of a seamless and safe financial ecosystem that bridges traditional and decentralized finance.

For companies interested in issuing their own NAKA Cards, we encourage you to consider joining one of our partner programs. Together, we can explore the benefits and opportunities that our solutions offer, and work towards a future where financial inclusion and innovation go hand in hand.