PumaPay is in the process of developing a protocol based on blockchain that seeks to revolutionize the way in which daily financial transactions are made. The company claims that debit and credit cards are no longer suitable for today's "accelerated global economy" purpose.
The firm argues that its system can boost cryptocurrencies for general use, causing people to reconsider how they process payments. PumaPay is developing an open source "Autopayment Protocol" that allows merchants to withdraw funds from a client's account with their consent.
This system will replace outdated methods that require a customer to send money to a retailer, while the payment goes through a long list of intermediaries, an expensive process that can take days to complete.
PumaPay affirms that its system is "much more credible, efficient, profitable and scalable" than current solutions. The platform offers the much-needed flexibility to make cryptocurrencies viable as a means of payment, both offline and online.
For business
According to PumaPay, the "anachronistic" dependence of the economy on card payments, which currently dominate online stores and transactions, is causing the biggest loss for merchants.
They explain that small businesses and retailers face multiple rates, ranging from 2 to 8 percent. While these charges are a serious detriment to the margins of profit of traders, the cash flow is also greatly affected by the long times of reconciliation of transactions.
Surcharges have become more frequent thanks to fraud and buyer's repentance, resulting in insecurity and fines. Traders are sometimes not sure if the money they got from a transaction will reach their bank accounts.
Despite recent advances in cryptocurrencies and blockchain, the company argues that the current available crypto-payment solutions are not functional enough to compete against large companies such as MasterCard and Visa.
PumaPay seeks to "serve the merchants, not exploit them" and make their platform "the de facto standard for modern payments". The startup is already promoting its protocol and has attracted the first users such as Rent24, Fashion TV, Backpack.io, SegPay, CCBill, and other payment processors and online merchants throughout several industries that will start using the system in its launch
Multiple companies in the adult entertainment industry have also been interested in the protocol. The adult industry suffers from high transaction costs of credit cards because it is considered "high risk".
PumaPay believes that its protocol is appropriate for "pay-per-view" scenarios, by protecting the privacy of customers and providing flexibility to entertainment platforms. Among the high volume and traffic companies that have decided to be the first to adopt the project are Vivid Entertainment, LoadedCash and IMLive.
PumaPay CEO Yoav Dror said: "Many online platforms are launching their own tokens, which are limited, by default, by their own user base. PumaPay's tokens transcend merchants, platforms and industries as more and more businesses express their interest in joining the ecosystem. As a result, the product offering will increase along with the spending potential of the PMA token and its demand will grow. "
Businesses that participate in the protocol will also benefit from PumaPay Pride, an application that alerts consumers in nearby stores that accept the platform token.
"As flexible as the payment cards"
In its whitepaper , PumaPay lists the potential uses of its smart contracts, PullContracts, which includes monthly payments for electricity bills, payment of a dinner at a restaurant and purchase of a subscription to a magazine.
The company believes that its system could be an ideal method to make children financially independent by giving them their own wallets and allowing their parents to withhold purchases when they deem it necessary. This same situation of "restricted payments" can also be applied to a corporate environment, where expenditures with employees' portfolios are supervised and provided by an employer.
PumaPay plans to launch an Android application first for customers, then one based on Chrome and an iOS version soon.