Transforming Finance Through Payments: Netstars' Challenge to Explore Uncharted Territories in Payments - An Interview with CEO Tsuyoshi Ri

Summary

1. The 'StarPay-X' Vision and Web3.0 Integration

Netstars has announced a new vision, 'StarPay-X', which connects Web2.0 and Web3.0. After successfully conducting a USDC payment pilot at Haneda Airport, the company aims to establish a neutral, multi-chain compatible gateway that is not tied to specific tokens, thereby integrating cutting-edge technology into everyday infrastructure.

2. Challenges of Retail Adoption and 'Invisibility of Technology'

The widespread adoption of stablecoin payments requires balancing user-friendliness with maintaining existing operations for merchants. The company has designed a comprehensive system that ensures settlements in yen even for foreign currency transactions, achieving 'invisibility of technology' so that merchants are not burdened by complexity.

3. Evolution from Payments to Finance and Economic Benefits

Blockchain enables reduced fees and immediate settlement (T+0), providing significant benefits to merchants. Furthermore, by combining pooled funds with DeFi (Decentralized Finance), the company aims to evolve from a '0.x%' payment business to a 'several%' financial business globally.

──Having grown by providing the 'StarPay' gateway that connects merchants with various payment brands, you announced the 'StarPay-X' concept in April to bridge Web2.0 and Web3.0. Could you explain the background that led to this concept?

Gang Li (hereafter, Li):Through StarPay, we have integrated various domestic and international payment methods for merchants. During this process, we have strongly felt that the world of payments is evolving from merely diversifying payment methods to becoming an infrastructure where money, data, and customer touchpoints are integrated.

Especially in recent years, as stablecoins and blockchain technology have entered the practical phase, the next major theme is how to leverage the value of Web3.0 within the real economy of the Web2.0 economic sphere. While there is still a considerable distance between the worlds of Web3.0 and Web2.0, how to integrate them is a crucial theme.

The 'X' in 'StarPay-X' is inspired by the convention in science and engineering to symbolize a challenge into unknown territories. It embodies our strong will to explore uncharted territories in payments and create the future.

By integrating the network, settlement, and operational management expertise we have developed with Web3.0, we aim to transform technological potential into 'everyday infrastructure accessible to all.' For merchants, we aim to achieve 'invisibility of technology' so they can enjoy new value as an extension of the usual StarPay. We announced StarPay-X to serve as a bridge for this purpose.

──You conducted a pilot for store payments using USDC at Haneda Airport's Terminal 3. What challenges did you identify for both users and merchants during the verification?

Li:Through this pilot, we confirmed that while stablecoin payments have significant potential, there are clear challenges to address for adoption in physical stores.

The primary challenge for users is the usability of wallets. While it may be a natural experience for crypto-native individuals familiar with digital assets, for general consumers, steps such as preparing the app, checking balances, and selecting networks present high psychological barriers.

To permeate as a daily payment method, a thoroughly intuitive and easy-to-understand UI/UX, where transactions can be completed simply by displaying a QR code like existing services, is essential.

On the other hand, from the perspective of the approximately 700,000 merchant accounts we currently serve, the simplicity of payment operations, accounting processes, and settlement management is paramount. It is not realistic to require special knowledge or training for store staff. A system that can be accepted in the same manner as existing operations and ensures sales are managed and settled in yen is needed.

In other words, 'technically being able to make payments' and 'actually integrating them into store operations' are entirely separate challenges. As an engineer, I believe in the power of technology, but I think the implementation capability of this 'last mile' is the true key to the widespread adoption of stablecoin payments. In the Haneda Airport pilot, I consider the ability to introduce USDC payments without burdening the store as one achievement.