In just 1 second, virtual assets can be paid. Like the prepaid systems commonly used in Korea, such as Kakao Pay or Naver Pay, where virtual assets like Bitcoin (BTC) or Tether (USDT) can be charged, the era has arrived where payments can be made anywhere overseas, including restaurants, convenience stores, and cafes, just like with existing KARD. The global virtual asset payment fintech RedotPay is breaking the misconception that virtual asset payments take a long time and began gaining attention domestically around April of this year.
RedotPay, which launched its services in Hong Kong in 2023, has grown rapidly and is now utilized in over 100 countries within just two years. It is particularly high in usage in countries with lacking financial infrastructure, and it is extremely popular in some countries where the sovereignty of the national currency is weak. RedotPay successfully secured $40 million (about 54.6 billion won) in Series A funding from venture capital firms last March and is currently preparing for Series B.
RedotPay supports payments anywhere that uses the VISA network. However, it is not supported in some countries where there are legal risks. Since payments can also be made in Korea, some users have directly signed up to try it out, but the majority of reactions domestically were, "It's interesting, but I don't need it." However, the Redot Pay team explained that virtual asset payments shine in financially underdeveloped regions rather than in places like Korea, where payment systems and financial infrastructures are well-established.
Notably, despite being a startup, RedotPay is famous for not issuing tokens and spending no expenses at all on marketing or media exposure. While supporting payment services in various countries, the marketing team consists of fewer than five people worldwide. Michael Gao, the CEO of RedotPay, met on the 17th of last month at RedotPay's headquarters in Hong Kong and noted, "Each country has different regulatory situations, and we don't know what potential risks there might be," adding, "Korea also has uncertain regulations, so we've been postponing exposure as much as possible." The following is a Q&A session with CEO Gao.
―What led to the creation of Redot Pay?
"Over 1.4 billion people worldwide lack access to basic financial services, especially in regions like Africa, Southeast Asia, and Latin America. We questioned, 'Why should financial service discrimination depend on where one is born?' and believe inclusive finance is a fundamental human right. Blockchain became the tool to address this issue. With just a smartphone and an internet connection, virtual assets can be used without a specific financial system. Redot Pay is developing a way for virtual assets to be used as tools for real life, not just as investments."
―I'm curious about the process through which virtual assets are paid in the same way as ordinary cards in just 1 second.
"When a user attempts to make a payment with RedotPay, virtual assets like Bitcoin are converted into the same value of fiat currency in real-time. For example, in Hong Kong, the virtual assets in the payer's wallet are exchanged into Hong Kong dollars (HKD) based on the exchange rate at the time of payment. This entire process occurs in just a few seconds, thanks to the robust liquidity management system that RedotPay emphasizes."
―Many payment service providers typically issue tokens. Why doesn't RedotPay issue a separate token?
"Tokens are usually used as a means to raise funds or recruit new users. However, RedotPay focused on building practical services regardless of assets. It implemented a payment system that does not require users to purchase or use another platform's tokens for payments. As a result, it rapidly gathered a user base and was able to attract external investments. By not issuing tokens, Redot Pay could concentrate on the usability of its services, compliance with regulatory requirements, and global applicability, freeing itself from concerns about token prices or volatility that it would have to worry about had it issued tokens."
―What was the most challenging aspect of running the business?
"In the beginning, building trust was the biggest challenge. Another significant hurdle was balancing user experience and regulatory compliance. In over 100 countries, Know Your Customer (KYC), Anti-Money Laundering (AML), and local regulations are mandatory, and implementing these without disrupting the user experience took time."
―Why do you rarely conduct official interviews or marketing?
"We are cautious and conservative regarding marketing and media exposure. One reason is the complex, varied, or uncertain regulatory environment in different countries. For instance, we provide services in over 100 countries, but do not operate in countries like Iran, China, and Russia due to regulatory risks and potential legal liabilities.
Additionally, RedotPay does not engage in aggressive advertising or promotion. Although the service can be used in Korea, users likely have not seen any advertisements. Instead, we support users in using RedotPay's services by ensuring compliance with requirements such as KYC and AML, should they voluntarily seek out the service."
―What impact will virtual asset payments have on the traditional payment market?
"Virtual asset payments, especially stablecoins, are already changing the landscape of the traditional payment market. They offer advantages such as faster payments, lower fees, and global accessibility, which makes them a game changer as they do not rely on traditional banking systems. This is particularly revolutionary in countries lacking financial infrastructure.
I am confident that stablecoins will become a major payment method within 5 years. Once the clarity of regulations is resolved, it will become even more so. Stablecoins combine the efficiency of virtual assets with the stability of fiat currency, making them ideal for everyday transactions. However, I do not believe that virtual assets will completely replace traditional payments. Rather, they will coexist and complement traditional payment methods.
―There are active discussions about won-based stablecoins in Korea. Do you plan to support won-based stablecoins?
"I find the development of the Korean virtual asset industry very interesting. First of all, Korea has a very large retail market and high interest in virtual assets. It has a vibrant community and strong infrastructure, which means there is high potential. In fact, there are promising blockchain startups originating from Korea.
A won (KRW)-based stablecoin could become a faster and more efficient payment method if there is strong institutional support at the government level. If such a stablecoin meets compliance standards and is accessible through public or approved channels, we will absolutely consider integrating it into RedotPay's ecosystem. We are always open to collaborating with forward-thinking institutions that align with our values of transparency, utility, and global accessibility."