Problem
Paying in any currency apart from XLM requires the need to use an anchor. Though this system works well this is not ideal in many situations such as:

• In many instances B2B transactions need to be settled directly between two businesses due to country regulation.
• Lack of anchors in certain markets means that either there is no way to settle using an anchor or the costs are two high due to competition

Solution:
We want to allow two wallets to settle in Fiat currency without the need for an anchor. The concept is to connect stellar accounts directly with the users fiat accounts. This allows for stellar network to act as a messaging, trust system or escrow between two wallets while the value exchange takes place P2P.

Use cases:
– Two merchants using the stellar network to agree terms and agree smart contract using stellar but want to settle in fiat.
– Freelance developers getting paid in XLM or fiat.
– Marketplaces which use stellar but need their merchants to settle in Fiat.
– Purchases made using crypto markets or using stellar as a settlement mechanism.

Under the Bonnet:
We use stellar & Open Banking API protocols to first connect a stellar accounts to bank accounts and then allow two wallets to exchange xlm or fiat currencies without the need for an anchor.

The payments process allows for full reconciliation of payments and confirmations between the wallet.

For the build challenge we will allow users
– To create a wallet that will include a stellar account
– Connect the wallet holders bank account to the stellar account (limited to a few european countries)
– Make payments requests over stellar. Attach an hash which contains payment request details.
– The hash triggers Euro payments directly from the connected bank account.
– The hash is also coded into the stellar and euro transactions allowing for a full loop confirmation and reconciliation process.

Payment process:

1.A request payment from B:

1.1 A payment request which contain amount, bank account details, description is created.
1.2 This payment detailed is hashed.
1.3 A stellar transaction is made to B containing hash in memo field.

2.1 Hash triggers a pop-up “request for payment”
2.2 B can now confirm the payment.
2.3 Payment confirmation triggers bank transfer via open banking API

3.1 Bank sends payment from B to A containing the Hash.

4.1 On receiving payment. A’s wallet detects the hash and confirms receipt with B.
4.2 This completed full loop of confirmation and payments reconciliation