How does Striga compare to Embedded Finance?
How does Striga compare to Embedded Finance?
- Mousser R.
- 9 min read
Table of Contents
What is Embedded Finance?
An embedded finance provider, per the name, allows other companies to embed financial features into their own applications. They usually cover everything related to cards and bank accounts.
Examples of them are Hubuc and Crassula, though there are many others.
What is Crypto-BaaS?
Crypto banking-as-a-service refers to companies that provide banking infrastructure —usually both crypto & fiat— for other companies to integrate into their products. Crypto-BaaS usually offer features regarding:
- Crypto wallets
- Crypto exchanges
- IBAN accounts for individual users
- Virtual and Physical Cards
- KYC & AML controls
Examples of them are Striga, Solid, and Synapse
Where do they overlap?
Embedded Finance and Crypto-BaaS overlap in card issuing and IBAN account creation. Basically, as the name implies, what makes Crypto-BaaS special are the crypto functionalities (wallet, exchange, crypto KYC/AML).
Striga Vs. Embedded Finance:
Time to Market
Embedded Finance: The integration to an Embedded Finance platform usually takes anywhere between 3 and 12 months, though it can vary a bit depending on the provider and the features to be implemented.
Striga takes between 6 weeks and 3 months to fully deploy a product, from the moment you make the decision, through the integrations, until going live.
Verdict: Striga is the faster option overall.
Striga
Embedded Finance
Time to Market
1.5 – 3 months
3 – 12 months
Striga Vs. Embedded Finance:
Financials
Embedded Finance: Banking-as-a-service providers have been known to charge between USD 2,000 and 20,000 as an upfront cost, with monthly minimums or subscriptions in the USD 1,000 – 5,000 range, though it may vary depending on each particular case.
Striga: The Crypto-BaaS platform of Striga charges EUR 5,000 as an upfront/integration cost, plus EUR 3,000 monthly.
Verdict: Some embedded finance providers may be cheaper, and some may be more expensive. Striga falls in the middle, leaning towards the cheaper side. It’s a tie.
Financials
Striga
Embedded Finance
Upfront Cost (EUR)
5,000
2,000 – 20,000
Monthly Minimum / Subscription Fee (EUR)
3,000
1,000 – 5,000
Striga Vs. Embedded Finance:
Services Offered
Embedded Finance and Striga offer a relatively similar service portfolio. Except for crypto wallets and exchange functionalities —which only Striga offers— they both include the following:
- White label infrastructure
- Individual IBAN accounts
- Physical and Virtual Card Issuing
- Apple Pay & Google Pay support (Tokenization)
- Product lifecycle management via a dashboard
Verdict: In terms of services, on the Fiat side, both options are good. If crypto functionalities are desired, Striga is the only way to go.
Services
Striga
Embedded Finance
White Label Infrastructure
Yes
Sometimes
Native Crypto Support
Yes
No
Crypto Wallets
Yes
No
Crypto Exchange Features
Yes
No
Individual IBAN accounts
Yes
Yes
Physical and Virtual Card Issuing
Yes
Yes
Apple Pay & Google Pay
Yes
Yes
Product lifecycle management via dashboard
Yes
Yes
Striga Vs. Embedded Finance:
Technical Setup
Besides the documentation being high-quality, the 4 following elements make the technical setup friendlier:
- Publicly available sandbox: Striga offers one, Embedded Finance providers sometimes do, but there’s no guarantee. Some of them choose to keep behind an approval process.
- The number of partners required: Assuming you start from scratch, to go live with a full crypto banking platform, you need the Embedded Finance provider and anywhere between 2 and 5 other partnerships (wallets, exchanges, KYC/AML providers, among others). Striga, on the other hand, is already connected with all the required pieces, so you only need the connection to its platform.
- Interactive setup guide: Though all companies have setup guides, they tend to be static. Striga is the only one with a guide that actually connects to its servers interactively, so clients can test and learn in real-time each step of the guide.
- Public API Documentation: Striga has publicly available documentation, as do most Embedded Finance providers.
Verdict: Connecting to Striga requires less effort given the extensive availability of resources it provides, as well as the simplicity of connecting to only one partner, as opposed to 2-5 on top of the Embedded Finance provider.
Technical Setup
Striga
Embedded Finance
Publicly Available Sandbox
Yes
Sometimes
Number of Partners Required to Go Live
1
2 – 5
Interactive Setup Guide
Yes
No
Public API Documentation
Yes
Yes
Striga Vs. Embedded Finance:
Regulation & Compliance
So, integrations were easy to connect, the app has all the features your user’s love, and it is actually making you money due to great financials. The only thing that could put a stop to it is making a regulatory mistake and getting shut down.
There are 3 things to know if you want to stay in business: Know your customer (KYC), Anti-money laundering (AML), and Licenses. The big question here is “who handles the KYC/AML process and holds the licenses”. Being in charge allows for more flexibility, but requires more resources and responsibility.
- On KYC: Neither the average Embedded Finance provider, nor Striga, allow for KYC outsourcing, they all handle it on behalf of the client.
- On AML: Neither the average Embedded Finance provider, nor Striga, allow for AML outsourcing, they all handle it on behalf of the client.
- On Licenses: Striga does not require its clients to hold virtual asset licenses or commercial registrations. Usually, this is also the case for Embedded Finance providers.
Verdict: In terms of flexibility and regulatory requirements, both options are very similar. It’s a tie.
Regulation & Compliance
Striga
Embedded Finance
Outsourceable KYC
No
No
Outsourceable AML
No
No
Licenses or Commercial Registrations NOT Required
Yes
Yes
Verdict
Is Striga better than the average Embedded Finance?
It really depends on what you are looking for.
If what you want is a fiat-only financial solution that is cheap to start with, then Embedded Finance can make sense for you. It is fast and (comparatively) easy to start with them, but they tend to have an inflexible infrastructure and get expensive at high volumes. Still, for new companies, it may make sense to start here.
If, on the other hand, you are interested in building both fiat and crypto infrastructure, and would prefer a more streamlined timeline, then Striga is the solution for you. Striga is ideal for growing companies who want a solution that leaves them space to breathe and expand their operations.
Striga Crypto-native Banking as a Service:
Your path to building and launching financial products
Join the financial businesses that use Striga’s cloud platform to delight their customers and launch their own products without the complexities that come when dealing with core banking solutions’ relationships, licensing, compliance and payments methods.
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