Welcome back!
This week, Nik Milanovic sits down with Sandeep Pyapali, Founder and CEO of Mesta, a global cross-border payment network combining traditional rails with stablecoin systems.
Mesta allows sending USD and stablecoins in over 50 currencies, cutting international payment costs by over 50%. Pyapali, with 17 years in payments – including Uber's $100 billion payment network – founded Mesta in 2024.
Pyapali emphasized the importance of stablecoins for efficient international payments and predicts the growth of non-USD stablecoins. Mesta aims to disrupt traditional Fiat-to-Fiat payments with blockchain technology. Pyapali's vision for Mesta was informed not only by his time building payments systems at Uber but also by his international travel on a sabbatical afterwards, and the difficulty of converting currencies for international payments.
You can learn more about what they're building at mesta.xyz
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While stablecoins are one of our favorite topics to discuss, it's important to note that this episode was sponsored by Mesta.
Episode Summary
Introduction to Mesta and Stablecoins
Nik Milanovic introduces the podcast and Sandeep Pyapali, CEO and founder of Mesta.
Mesta is building a global cross-border payment network combining traditional payment rails with stablecoin blockchain payment systems.
Nik highlights the importance of stablecoins from the conference "Stable Con" and the growing interest in stablecoin products.
Speaker 1 provides a disclaimer about the content of the podcast.
Advantages of Mesta Over Conventional Payment Providers
Speaker 2 explains the advantages of Mesta, including sending USD and stablecoins in over 50 currencies, cutting international payment costs by over 50%, and eliminating payment delays.
Stablecoins are expected to alleviate conventional pain points for merchants.
Sandeep Pyapali is invited to join the discussion and share his background.
Sandeep Pyapali's Career Background
Sandeep Pyapali shares his 17-year experience in building payment systems across the world, including his time at Uber, Bill.com, and PayPal.
At Uber, he built the Uber payment network, which moved $100 billion annually in 70+ countries and executed 25 million transactions daily.
Sandeep discusses the challenges of building cross-border payment systems at Uber and the inefficiencies of existing technologies.
His experience led to the idea of building a faster, cheaper, and more efficient global cross-border payment system, which eventually became Mesta.
Challenges of International Payments and Influence of Travel
Sandeep Pyapali discusses the challenges of international payments, including the difficulty of using local payment systems in different countries.
He shares his experience of traveling to 10 different countries and the challenges faced with local payment methods.
The inefficiencies of existing technologies and the desire to build a more efficient global cross-border system influenced the creation of Mesta.
Sandeep emphasizes the importance of combining Fiat and stablecoins to address the needs of both international travelers and local economies.
Inspiration and Vision for Mesta
Sandeep Pyapali explains the inspiration for Mesta, which started in 2023 and launched in 2024.
The goal was to combine traditional payment methods with blockchain technology and stablecoins to create a more efficient payment system.
Sandeep highlights the importance of having the right token on the blockchain, which stablecoins provide.
The tri-factor of blockchain, regulation, and high liquidity of stablecoins made it the right time to build Mesta.
Regulatory Environment and Market Adoption
Sandeep Pyapali discusses the regulatory environment for stablecoins, particularly in Europe and the United States.
He highlights the importance of clear regulation for stablecoins and the impact of the Genesis Act in the United States.
Sandeep expects more banks and non-banking financial institutions to adopt stablecoins and work with companies like Mesta.
The future of stablecoins includes more banks introducing their own stablecoins and the growth of non-USD backed stablecoins.
Scaling and Challenges of Mesta
Sandeep Pyapali shares the challenges of scaling Mesta, including building payment systems without using archaic forms of payment like wires.
Mesta's focus is on converting stablecoins to Fiat and using local payment rates to send Fiat to beneficiaries' bank accounts.
The company has processed over $80 million in total payment volume and currently processes $1.5 to $2 million daily across multiple currencies and blockchains.
The challenge is to ensure reliability, scalability, and profitability while maintaining compliance with regulations.
Anti-Fraud and KYC Measures
Sandeep Pyapali discusses the anti-fraud and KYC measures implemented by Mesta to ensure compliance.
The company uses real-time screening of wallets and multiple hops to detect suspicious transactions.
Mesta has built a robust internal risk transaction monitoring engine to prevent suspicious transactions.
Compliance is paramount for the company to ensure reliable and secure transactions.
Vendors and Service Providers
Sandeep Pyapali mentions the vendors and service providers that have been helpful in scaling Mesta.
AI Price is used for KYB/KYC, and Merkle Science for blockchain analysis.
These companies have worked well in providing global coverage and real-time transaction monitoring.
The goal is to integrate these systems seamlessly on the Mesta payment network.
Future of Mesta and Tokenized Assets
Sandeep Pyapali outlines the future plans for Mesta, including the introduction of more currencies and use cases.
The company aims to provide named USD bank accounts to individuals and businesses globally.
Mesta sees the future of financial services involving the digitization of real-world assets on the blockchain.
The company will continue to focus on reliability, scalability, and profitability while building capabilities for efficient money movement.
Impact of the Genesis Act and Stablecoins
Sandeep Pyapali discusses the impact of the Genesis Act on the payment industry and Mesta.
The Act will increase the number of banks open to working with fintechs like Mesta.
More banks and non-banking financial institutions will adopt stablecoins, leading to the growth of on-chain Forex.
The future of stablecoins includes the introduction of non-USD backed stablecoins and the efficient conversion of Fiat to Fiat using stablecoins.
