An International Melting Pot for Policy, Financial Innovation, and Technological Advancement

Since its launch in 2016, the Singapore FinTech Festival (SFF) has established itself as the foremost global gathering for the FinTech community to engage, connect, and explore advancements in financial services, technology, and public policy.

SFF offers a dynamic platform with insightful sessions, roundtables, workshops, and exhibitions, providing an in-depth look at the future of financial services and the digital transformation shaping global economies.

Returning for its 9th edition from 6 to 8 November 2024, at Singapore EXPO—preceded by the Insights Forum™ on 4 to 5 November—SFF 2024 brings together an esteemed roster of global central bankers, regulators, industry leaders, entrepreneurs, investors, and innovators.

This year's forum focuses on harmonising regulation, innovation, and technology to shape the future of the financial ecosystem.

Organised by the Monetary Authority of Singapore (MAS), Global Finance & Technology Network (GFTN), and Constellar, in collaboration with The Association of Banks in Singapore, SFF continues to be a driving force in the evolution of global finance.

Revolutionising Finance with PlatON's Privacy-Driven Infrastructure

Coinlive recently connected with PlatON, an open financial infrastructure spearheaded by the LatticeX Foundation, poised to be a leading blockchain platform in the Web3 era.

With a commitment to stability and performance on par with traditional financial systems, PlatON offers a robust suite of privacy-enhanced solutions for compliant digital asset management, multi-scenario encrypted payments, and streamlined settlement.

Designed to support a seamless user experience, PlatON caters to a diverse range of Web3-native applications, while also facilitating a smooth transition for applications and users migrating from Web2 to Web3.

PlatON's ZKPAY: Seamless Crypto Transactions at Your Fingertips

We spoke with Cipher Tang, Senior Vice President of LatticeX Foundation Limited, about their launch of ZKPAY payment method, showcased at Hong Kong FinTech Week just last week.

ZKPAY introduced a breakthrough in digital transactions, allowing users to issue their own currencies, create custom payment cards, and complete POS payments with a simple TAP.

The event also highlighted TOP WALLET, which enables seamless face-to-face money transfers, presenting a new frontier in personal, secure financial interactions.

This novel payment technology, ZKPAY, centers around Zero-Knowledge Proofs (ZKP) for seamless crypto transactions.

This system enables users to verify payments securely and instantly on Android devices using NFC.

By integrating this ZKP technology, any mobile device equipped with the system can transfer cryptocurrency to another device effortlessly, offering a convenient alternative to conventional card payments.

Tang pointed out that currently, the system functions through a proprietary wallet that embeds the ZKP technology, meaning that users need to download their specific wallet for compatibility.

However, there are already plans to expand its compatibility to other wallets.

This ZKP-driven payment method also offers a unique feature: it issues preset amounts in digital "cash," allowing users to pay exact amounts needed at checkout, minimising extra steps typically required in traditional crypto wallets.

He expounded on the ease of use:

“And the special feature is that now we can issue cash. The cash has the amount, right? 5, 20, or any other amount. Then if you use normally the crypto wallet, decentralised wallet, the amount is the same as you transfer. But in our ZK proof, you need not do that. We just issue the 5 dollars. And the merchants maybe just calculate the amount of the items. Maybe 2 US dollars. You can tap. Then the 3 will return to you automatically. So this is different with the other crypto wallets.”

When enquired about ZKPAY's debut at last week's Hong Kong FinTech, Tang explained that the team is showcasing an additional function of ZKPAY this SFF that was not demonstrated prior.

Initially, payments were made using QR code scanning, but the latest version includes a tap-to-pay option, making the process faster and more user-friendly than before.

Tang stated:

“Yeah, we show in the Hong Kong FinTech. But that time we just scan QR code to transfer. Not the TAP function. So this week we show in the SFF that we use the TAP to transfer and TAP to pay. I think it is cooler than using the QR code.”

Additionally, this technology does not require the extensive certification or costly integration associated with traditional POS machines using Visa or MasterCard networks.

Instead, merchants can use standard POS devices with a straightforward SDK integration, making setup quick and affordable.

Mirroring Web2 Experience to Enhance User Journey

The system is blockchain-based, offering real-time settlement with lower transaction fees compared to standard financial networks.

Transactions currently have no fees, though a future structure may involve minimal charges similar to Visa or MasterCard but at significantly lower rates.

This approach is expected to attract users, merchants, and acquirers due to the lower costs and ease of adoption.

For users, the payment flow mirrors the Web2 experience, simplifying adoption without requiring extensive blockchain knowledge.

Merchants are equally positioned to adopt the technology seamlessly, with the acquirer facilitating automatic conversions from stablecoins to local currencies, eliminating settlement concerns.

Tang said:

“So the wallet just needs to integrate and you can generate the ZK proof. So they can touch and finish the payment. So there's no cost, no transaction fee. We can define the transaction fee on blockchain because that is a smart contract, right? And now, there's no fee. But in future, I think we will discuss with the acquirer and the wallet provider. We can make the same structure like Visa or Master. But I think this structure is new. So it will lower cost for the acquirer or merchants or users. But I think the fee is 10 times maybe lower.”

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Positioning ZKPAY as a Web3 Visa

In terms of partnerships, the company is seeking collaborations with acquirers and wallet providers globally to expand its network.

Tang explained:

“…we are discussing and looking for some acquirer-side partner or wallet partner to build the network. Because we are the network, right? So we are just the infrastructure. Now we do not have the power to develop the merchants directly.”

It recently partnered with Gimlet Labs, expanding its footprint through local partnerships to build merchant networks.

The goal is to position this technology as a "Web3 Visa," providing an open-source infrastructure for a decentralised payment network.

With regard to compliance, Tang pointed out that as a technology-driven company, they will conduct audits on the underlying technology, such as smart contracts and ZK protocols as their role does not involve custody of customers' or merchants' crypto assets:

“So for the MAS, we may need to report the whole solution to them. But I think we do not need to get the license for the compliance because we are a technical company, not a custodian. But I think on the technical side, we need to inform the global market in terms of safety. So I think the next step, we will do that. I think we want to build a company to get the compliance license.”

Overcoming Obstacles & Making Things Work

This technology is pioneering in its approach to ZK applications, as it moves beyond the conventional ZK roll-up typically used in Layer 2 solutions.

Instead, this platform applies ZK for payment verification, providing a unique advantage over traditional digital signatures, which require visible parameters such as sender, receiver, and amount details to be shared with the network.

In Web2 payment models—such as Alipay—transactions are typically initiated by the merchant, who defines the amount when a user scans a QR code.

They wanted to replicate this user-friendly experience in a Web3 environment, with added privacy and security.

Tang noted:

“We use the ZKs to make the verification for the payment. Why we use that? Because if you use the traditional signature, you need to put all the parameters, like sender, receiver, amount. You need to define all, totally, these parameters and the signature then you can send to others. But if you see in the traditional web2 payment scenarios, like the Alipay uses the QR code to scan to the merchants, then the merchants will define the amount for the transaction, not the users.”

After exploring multiple methods, they found only ZK technology could meet these needs while maintaining the privacy of transaction details on the blockchain.

With a ZK-based approach, merchants can define transaction parameters without broadcasting sensitive information.

This capability required over a year of rigourous development and optimisation to achieve the fast, seamless experience we have today.

He elaborated:

“So we try several methods on how to put the verification into the blockchain and the need for privacy and security. So last time, we found only ZK can do that. Others may not be able to do that because the blockchain needs the nodes to get counters for the transaction…But if we use the ZK, we found that we can do that. So we spent about one year to modify, to upgrade the code. Now, you can see it's very fast and smooth.”

This solution marks a significant step forward in enabling Web2-like payments within the Web3 ecosystem, allowing for easy offline and online transactions with secure, private verification.

He added:

“So I think the idea is very difficult to find because you need to try so many methods to get this way. And now, I can't say this is the best way, but now you can see. I think in this day, we just can make the Web2 payment like the behavior into the Web3, right? So it's the same.”

Tokenised Open Payment Operating Systems (TOPOS)

TOPOS, the cross-chain acquiring system, now integrated with ZKPAY, enables seamless merchant access and automated digital-to-fiat currency settlement.

By partnering with stablecoin issuers, this system reduces barriers for traditional offline merchants to accept digital currency, making the transition to digital payments more accessible and streamlined.

Just last month, PlatON formally partnered with StraitsX, Southeast Asia’s premier digital assets infrastructure provider, and Allinpayintl, a global leader in financial payments.

This strategic alliance aims to combine each organisation's strengths in blockchain technology, payment solutions, and digital assets to foster innovation in cross-border payments across the Asia-Pacific region.

Through this collaboration, the parties seek to enhance payment efficiency, streamline digital transactions, and set new standards for secure, scalable cross-border financial infrastructure.

TOPOS shared the collaboration on X (formerly known as Twitter).

So what is the next step?

Currently, it is designed for one-time use, but the company is already planning an enhanced solution for multiple transactions.

To complete a payment, users will simply tap their card against a merchant's terminal, with their mobile phone serving as the key to authenticate the process.

Tang shared their plans:

“…now the ZK proof is one-time use. And the next step we will give the solution which is for multiple times…Like you can issue the one card by yourself. This card is just an NFT card. You can buy it on online shop, anywhere. Then the ZK can insert the ZK proof in that. If there's multiple times, then you can take it. Tap to the merchants. You need to take your mobile phone, right? So the next step in the next two months or before the end of the year, we will launch the multiple times solution for the users.”

PlatON aims to roll out this multi-use solution within the next two months, or by the end of the year, offering users a more seamless and flexible payment experience.

Overall, this ZKP payment system bridges Web2 familiarity with Web3 innovation, positioning it as a user-friendly, low-cost payment solution that could redefine crypto transactions for mainstream audiences and merchants worldwide.

Tang concluded:

“So I think our vision is the user journey and it needs to be the same as the Web 2. So anything that we do will follow this vision. So we do all the scenarios that look like it is just a Web 2 scenario. But the background is all on the blockchain. So I think this is special.”