FAQ

TLDR;

Yumi provides infrastructure for crypto cards, allowing them to issue a credit card backed by onchain loans and credit profiles. Yumi handles all the risk, and the integration is minimal - we work alongside your current infrastructure, financing logic, and support VISA/Mastercard debit cards (you won't need to "issue" a credit card).

TLDR; How it works?

Our credit/loans are purely uncollateralized. Because we

• KYC the user - we know his identity, so we can service the bad debt if needed

• Underwrite the user - we use their wallet or bank(optional), and other data sources to assess the risk with AI

How do you underwrite the user?

We underwrite them based on a mix of onchain and offchain data. Currently, we only require the user's wallet connection. However, the user can also connect their bank account to get a greater limit. In the future, we plan to use zkTLS to get access to their credit score, employment status, tax report, student status, and other sources that might help us better underwrite people around the globe.

What is the APR? Is there a revenue share?

Yumi's APR is 14%. As a card provider, you are free to add any markup you want. You can configure this in our dashboard.

Does the user have to pass KYC?

Yes. They need to do a zkKYC by scanning their passport/ID or connecting their bank.

How do you handle repayments?

There are 2 options where the user either repays manually, or signs an EIP-712 message for Yumi to automatically pull funds, using ERC-7702 smart account functionality.

How do you handle defaults?

We work with debt collection agencies to service the bad debt.

Would we need to issue a credit card?

No, your entire infrastructure can stay the same. We work with regular VISA/Mastercard debit cards. The only difference is that instead of taking the money from the user's wallet, you take it from our pool.

Do we need to change any of our existing logic?

The integration is minimal. Backend: You have to call Yumi's API/Smart Contracts during the authorization and settlement phases only. We don't introduce any delay. You can read more in Technical architecture Frontend: We provide a React Native SDK for you to integrate our KYC flow into your app. Everything is fully white-label.

Do we need to deploy any new smart contracts?

No. It is backend/frontend integration.

Do you work with both JIT and a Pre-funded model?

Yes, we support any card infrastructure.

What is the credit limit?

We're planning to have an initial limit of 10,000$ per user.

Who funds the user's loan? Who's responsible for defaults?

Yumi takes on ALL the risk. We use private capital and, later, DeFi, to fund the loans. If a user defaults, Yumi eats the loss (defaults are fully accounted for in our model, so Yumi can afford to do that and remain profitable).

When does Yumi fund the loan?

CHECK: Slava

We support funding both during the authorization phase (the card provider can lock a portion of funds in our smart contract) and in batches at the end of the day(during settlement). This depends on your compliance and risk management preferences.

Is there a demo live?

Yes. Please contact us to schedule a live demo or get the Loom video.