Transak is a developer integration toolkit that enables seamless crypto transactions within any app, website, or web plugin. It allows users to buy and sell cryptocurrencies, empowering developers to create innovative crypto experiences. Transak handles all regulatory compliance, allowing developers to focus on building their applications without worrying about legal requirements.
According to the Crypto.com report of January 2024, the global cryptocurrency owners grew 34% within a year, reaching 580 million in December 2023. However, one of the main reasons people (33%) do not invest in cryptocurrencies is that they don’t know how to buy them.
We recently interviewed Yeshu Agarwal, one of Transak's co-founders, in person during EthCC Brussels, to explore how companies are simplifying new user onboarding. In this interview, we discussed the inspiration behind Transak, the challenges faced during development, and the company's future plans. According to the founder, Transak has a wide range of use cases, including wallets, gaming, DeFi, and NFTs.
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The Inspiration Behind Transak
Yeshu shared the inspiration behind creating Transak: He revealed that the team noticed a gap in the market for a simple and secure way to buy/sell crypto from apps.
With two main components, the widget and the developer tools that could be integrated into different platforms, Transak makes it incredibly easy for anyone to transact with crypto. It eliminates the need for multiple accounts, and the KYC process is simplified and straightforward.
Complex KYC or AML procedures often cause users to abandon the verification process midway. Additionally, the lengthy duration of the verification process restricts the onboarding of beginners.
As per Signicat's report, 68% (3.25 out of 10 people) of people abandon financial service apps due to a time-consuming application process, lack of fully digital options, and the requirement for too much personal information.
Transak recently partnered with Privado ID to enable decentralized identity and KYC reusability to enable upcoming apps to onboard users seamlessly, in a compliant way. Currently Transak has three levels of KYC verification tailored to different user needs:
Light KYC: Ideal for Web3 gamers, this quick 30-second onboarding uses name and billing address for smaller transactions.
Standard KYC: Suitable for transactions up to $20,000, this 10-minute process verifies identity, liveness, and address.
Enhanced KYC: Best for high-value transactions up to $75,000, offering comprehensive verification for unlimited crypto access.
Furthermore, Transak’s crypto payment gateway allows partners to integrate seamless crypto transactions into their apps. For instance, gamers can buy in-game assets with crypto without developers needing to build their own payment infrastructure. This enables developers to focus on creating great games while still providing a smooth crypto experience for users. This is just one of the many use cases for Transak, demonstrating its versatility in simplifying crypto transactions across various applications.
"These games don't need to apply for licenses or worry about KYC, we take care of that. They should be enable to focus on what they are good at - bulding games."
Yeshu Agarwal, Co-Founder of Transak
With 200+ games building on Transak, the company has established itself as a leader in the crypto payment gateway space. They continue to expand their services and partner with more platforms, making it easier for people around the world to transact with cryptocurrencies, according to the founder.
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Transak can also be seen in wallet apps such as Trust Wallet and MetaMask, allowing users to easily buy and sell crypto directly from their wallets. This integration simplifies the process for users and opens up more opportunities for merchants to accept cryptocurrencies as a form of payment.
“The biggest MOAT in this industry is getting licensing” - Yeshu Agarwal
Simplifying the Onboarding Process
The conversation shifted towards the onboarding process for merchants and users. Yeshu shared that their goal is to make it as easy as possible for businesses and individuals to start using Transak. This includes providing a simple integration process and user-friendly interface, along with 24/7 customer support for any questions or issues that may arise.
Yeshu believes that most people who use Web3 applications in the future won't (or don't want to) know about the underlying blockchain technology. They just want to be able to use these applications seamlessly and efficiently. And that's exactly what Transak is working towards - simplifying the onboarding process for both businesses and individuals, making it easier for everyone to access and utilize cryptocurrencies in their daily lives.
By allowing apps to become responsible for gas fees, the users won't be bombarded with complex technical details and can instead focus on the benefits of using cryptocurrencies, such as lower transaction fees and faster transactions.
There are just too many steps currently to make the user experience optimal for mainstream adoption. Using a white label integration with on-ramps, users can use an easily recognizable payment gateway such as Apple Pay to buy cryptocurrencies, making the process seamless and familiar.
Transak X Visa 💳
Now, millions of users from over 145 countries 🌍 can enjoy the freedom of converting over 40+ Cryptos 🪙to Fiat and deposit funds directly to their @Visa debit cards with @Transak.#TransakXVisa pic.twitter.com/S1edudUDXm— Transak (@Transak) January 30, 2024
However, the infrastructure for these connections still needs to be built. That's what Transak is working on, in collaboration with various payment gateways and cryptocurrency exchanges. They are constantly expanding their network of partners to provide the best experience for their users. This is just one aspect of Transak's vision for a future where cryptocurrency is seamlessly integrated into our daily lives.
Benefits and Challenges of Using Crypto
As the conversation began to come to an end, Yeshu also highlighted their partnership with Visa. With approximately 4 years of working together, they have been gradually making the onboarding process easier for users. Visa's large network helps Transak reach more users and spread awareness about cryptocurrency. This reduces the barrier to entry for individuals who are interested in using crypto but aren't sure where to start. According to your website, Transak has over 170 cryptocurrencies and 168 countries.
One of the biggest benefits of using cryptocurrencies is the speed and efficiency of transactions. Traditional financial systems can take between 2-8 days to process transactions, especially international ones. But with cryptocurrency, transactions are typically processed within minutes, allowing for faster and more efficient exchanges. This has been a concept that was explained for years but Transak is one of the first platforms to truly make it a reality.
“As we are opening new entities, our cost of sales reduces and we can open up a local payment gateway in the country, and that’s how you can provide the best price for customers."
Yeshu Agarwal, Co-Founder of Transak
This "money-flow" can happen within half an hour, including the KYC and registration process, and those who receive crypto can easily exchange it for fiat and vice versa. This eliminates the need for intermediaries such as banks and payment processors, reducing transaction fees and increasing financial freedom. With all this being possible within the app, users have full control over their funds and can track their transactions in real-time.
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Final Thoughts
Transak powers the best in Web3. With multiple products and long lasting partnerships with the biggest names in both Web3 and traditional finance, Yeshu and his team are committed to making crypto accessible to everyone. From fiat to smart contract products to integrations with major wallets and exchanges, Transak is constantly expanding its services to make the user experience seamless. It's removing the friction that burdens so many individuals and businesses from entering the world of cryptocurrency.
With Transak, anyone can easily buy, sell, and hold crypto, making it a game changer in the industry. There's no doubt that Transak is paving the way for a more inclusive and efficient financial system. Yeshu is determined to keep pushing the boundaries and leading Transak to new heights, making it a crucial player in the future of finance.
