IBS Journal November 2017
43
What sets you apart from the competition?
Unlike other players in the market, SONECT operates as a platform. Like Über or AirBnB, it deploys a strategy of leveraging the power of the sharing economy. It empowers any individual or shop owner with extra cash in their wallet or cash register to simply download an app, sign-up instantly and start offering the virtual ATM service. With SONECT, a pizza delivery boy or a taxi driver can also become a virtual ATM and dispense cash.
However, cash is just a commodity being used to build the network of virtual ATMs. Soon these virtual ATMs will act as the branches of the banks. Simple retail banking activities like cash deposit, money transfer, micro loans, bill payment etc. can also be done at a neighbourhood shop. In a world where convenience is everything, SONECT believes the future generation will still look for these services – but would like to have them accessible everywhere without looking for an ATM or a physical branch of the bank.
What was your smartest move?
SONECT bypasses existing payment rails by blockchain and API. At its core, SONECT deploys a blockchain-based digital wallet circulating fiat currencies. This helps them augment the existing payment rails to bypass the payment intermediary costs and
create a business model like this one that can fit any global market.
For the European market, SONECT acts as a PISP (Payment Initiation Service Provider) that connects to the banks via open API (post PSD2). This reduces costs of cashback transactions and establishes a global network of interconnected shops that paves the path for a global instant payment rail. Their virtual ATM recommendation algorithm will also bring the consumers to the stores based on their personal preference.
Where did things get tough – what was your biggest setback?
For any startup, a slight delay in getting the plan executed could prove fatal. At the beginning, it was quite challenging to get all regulatory clearance and convince banks to open up to the power of the sharing economy. With perseverance, SONECT cleared all initial hurdles and overcame various delays to launch their services in Switzerland. Now they are receiving inbound interests from banks all around the world and are struggling to prioritize their pipeline.
Where do you want to be in five years’ time?
SONECT aims to become the largest network of ATM providers in the world – without owning any physical infrastructure.
empowers any individual or shop owner with extra cash in their wallet or cash register to simply download an app, sign-up instantly and start offering the virtual ATM service
“ Sandipan Chakrabort, founder of SONECT
SONECT
www.ibsintelligence.com
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