Zep is a seamless, blockchain-based remittance and merchant payment solution designed for Latin America and the Caribbean (LAC). It enables sponsors in the USA to send money directly to beneficiaries and ensures that funds are used for their intended purpose.

Currently, remittance money often gets misused, merchants struggle with POS adoption, and cash withdrawals at ATMs pose security risks. Zep eliminates these issues by allowing direct crypto-backed payments at local SMBs without requiring internet access for beneficiaries.

With Zep:

Sponsors can send money instantly, anytime, even on weekends, and restrict usage to essential needs like groceries.
Beneficiaries can shop without needing mobile internet, reducing reliance on cash.
Merchants can easily accept payments with a mobile-friendly app, increasing financial inclusion.
Security is enhanced as transactions happen on-chain without exposing users to ATM-related crimes

Sponsor Onboarding (USA)

The sponsor signs up on Zep using Coinbase Developer API.
A virtual crypto wallet is created for them.
They fund the wallet with USDC and initiate a sponsorship transaction (e.g., $100 for groceries).
Beneficiary Registration (LAC)

Beneficiaries are onboarded using a simple ID-based verification process.
They receive an SMS confirming sponsorship and available funds.
Merchant Onboarding (LAC)

Merchants register with a wallet using a Coinbase-compatible API.
The app allows them to search for beneficiaries by name (government ID-based).
Making a Purchase

The beneficiary visits a merchant and selects items worth, say, $10.
The merchant searches for the beneficiary in the app and requests payment.
The beneficiary receives an OTP via SMS:
“Do you want to send $10 to XYZ Store? Your OTP is 1234.”

Upon entering the correct OTP, the smart contract transfers USDC to the merchant’s wallet.
Transaction Completion

The merchant receives USDC, confirming the sale.
The beneficiary gets an SMS confirmation.
By keeping the process mobile-friendly and requiring only an SMS for transactions, Zep ensures accessibility for users without mobile data while leveraging blockchain for transparency and security.

Frontend: A mobile-friendly progressive web app (PWA) for sponsors and merchants.
Backend: A API that interacts with Coinbase Developer API and smart contracts.
Blockchain Layer:
Smart contracts handle fund locking and release on Base.
USDC is used for transactions.
Merchants withdraw USDC or convert it to fiat through integrations.
User Authentication:
Sponsors sign in via OAuth and link payment methods.
Beneficiaries authenticate via phone number and government ID.
Merchants register with a wallet for payments.
The development process follows an MVP-first approach, focusing on remittance-sponsored transactions before expanding to additional financial services.

Coinbase Developer API: For wallet creation, USDC transfers, and sponsor funding.
On-Chain Toolkit (Base): For secure transaction execution via smart contracts.

Category-Locked Remittances – Sponsors can specify that funds are used for essential goods, reducing misuse of remittance money.
No Internet Required for Beneficiaries – Transactions are authenticated via SMS, making it accessible to users without mobile data.
Crypto-Based Security & Transparency – Funds are stored in smart contracts and only released when transactions are verified.
Seamless Merchant Adoption – Unlike POS systems that are faulty or difficult to use, Zep provides a mobile-friendly app for easy payments.
24/7 Accessibility – Unlike traditional bank transfers, which may have delays, transactions can be made any time, including weekends and emergencies.

We have implemneted on chain One time passwords that expire in our contracts!

We made the tradeoff of generating the OTP on chain, in prod this would be done with a chainlink vrf oracle or some other mechanism.
We have implemented a otp that expires on chain!
The general UX needs a bit of work but we traded that off for the fuctionalality