Companies such as ZBD have been more receptive than most payment platforms in adopting cryptocurrency, in particular Bitcoin, to accelerate their payment processes.
Built on Bitcoin infrastructure, ZBD helps boost payments within gaming platforms that can provide consumer benefits to maintain customer retention and loyalty.
ZBD COO, Marca Wosoba, spoke to Payment Expert on the growth of crypto adoption amongst younger people, its capabilities to accelerate payments, and what more can be done to boost participation across mainstream audiences.
Payment Expert: What skills have you brought over from working in roles in traditional finance which you then applied to ZBD’s payment infrastructure?
Marca Wosoba: Having a background leading expansion into new markets with new regulatory licences, managing P&Ls relating to payments products, and sitting on the boards of regulated payments companies – all while maintaining regulatory compliance and building resilient payment products – has definitely helped me to ensure that ZBD’s payment infrastructure is robust, secure and meets global standards.
Working in ‘traditional’ banking and finance taught me the importance of trust, risk management, and product integrity; qualities that are central to ZBD’s Lightning Network payments tech. Here, we’re focused on making payments seamless and instant for users, something we’ve achieved by blending traditional banking know-how with cutting-edge digital native technology.
PE: Would it be fair to assume that 18-34-year-olds are leading the way with crypto payments, and how has this been boosted through crypto’s integration into gaming?
MW: Gen Z and Millennials have grown up in a digital world, so new technologies feel natural to them. Our recent research among Gen Z showed that they are slightly more likely to invest in cryptocurrency than equities. They use digital wallets and payment apps more than credit cards. And they expect rewards and cashback from their interactions with brands and financial services companies.
At ZBD, we’ve seen how engaging Bitcoin can be as a reward mechanism in games. In other types of rewarded gaming, users might have to save up to a minimum amount, but our payments technology means ZBD users can withdraw real money as soon as they earn it, even if it’s a fraction of a cent.
Our partnership with Fumb Games’ ‘Bitcoin Miner’ is a great example, adding another layer of engagement to the gaming experience and bridging the gap between gaming and the real economy in a way that resonates with younger generations.
PE: To what do you attribute the success of Fumb Games’ Bitcoin Miner app after it surpassed three million downloads this year?
MW: With the greatest of respect to the studio who are great friends and partners of ours, Bitcoin Miner was effectively a ‘dead’ game before integrating ZBD. By giving players small amounts of real money just for playing as they normally would, the game has grown exponentially.
There’s a great thematic fit given the title and content of the game, but we’ve also seen that any game can use our SDK to integrate ZBD rewards and experience success without an overt link to Bitcoin.
PE: What can fintech/payment service providers learn from gaming’s adoption of crypto?
MW: It’s less about crypto specifically and more about what instant payments can enable. Gaming has identified that real-money rewards drive engagement better than siloed mechanisms like airmiles or supermarket loyalty points. But it’s only possible to move tiny amounts of money in real-time with the latest tech.
What can fintechs and payment providers take from this? The next generations expect different and more meaningful reward formats that fit the digital native culture, enabled by frictionless and no-fee payments.
PE: With ZBD being built on Bitcoin, what have you made of the cryptocurrency’s busy year last year, taking into account the ETF launch and the Bitcoin Halving event?
MW: Ultimately, institutional and consumer interest in Bitcoin is good for ZBD, but what we really want to see is stability and regulation that gives greater confidence to make use of what the tech can enable.
Embedded payments has been around for several years now but leveraging the Lightning Network enables fintechs to transform digital economies – from gaming to interactive entertainment – by making digitally native, frictionless payments truly possible. It’s also interesting to note that the price fluctuation of Bitcoin has virtually no correlation with our business.
We’ve seen sustained growth regardless of what the market is up to, which comes as a surprise to some, but really just confirms our point that ZBD is not a cryptocurrency company, we’re a payments company that leverages Bitcoin as our core rail.
PE: What more can be done to help position Bitcoin as a mainstream and viable payment method to shed some of its investor trope perceptions?
MW: More regulation, more education and better communication of real-world applications. It will take some time to shift the legacy perception of Bitcoin as solely an investment, but in reality Bitcoin is far closer to being a major part of the mainstream economy than many would guess.
Partnerships between businesses and payment platforms – like our recent link up with FinFare Connect – demonstrate just how safe and useful it can be to use.
PE: With the onset of MiCA coming into effect, will this landmark regulation signal more outside interest from major companies to begin adopting crypto more than ever before?
MW: MiCA is a major step forward. It provides the regulatory clarity that’s been missing, and this will encourage more established companies to adopt crypto and transform payment and digital experiences.
With clear rules in place, the risk is reduced, which means more businesses will feel confident integrating Bitcoin into their services. This regulation will help scale crypto operations in the EU. On our side, we’re already seeing companies take notice and explore how they can leverage Bitcoin in their ecosystems.