The next frontier on the Crypto to Fiat bridge
Blockchain is great at many things, but many people are used to doing things a certain way. Certain payment models already exist and it’s up to crypto to find solutions that meet the current challenges. PumaPay is working with merchants to accept crypto payments with subscriptions and other advanced payment models.PumaPay achieved this feat in october 2018 as they were the first project to introduce recurring payments on blockchain.
Its been 18 months since PumaPay conducted the 7th most successful ICO of all time, raising 117 million dollars in 2018. PumaPay has now moved from the development stage to the go to market stage. After finishing the core components of the system PumaPay is now targeting early business adopters and onboarding initial customers and starting to see real use in the token to purchase items and subscriptions.
PumaPay is the leader in the category of crypto pull payments. Pull payments are the pre- authorization to draw funds from someone’s wallet. They have inverted the transaction from the typical crypto process. Before PumaPay the only way to transfer funds was if one party would type in a crypto address and would push the payment to another party to complete a transaction. The pull payments model allows pre authorization on agreed upon conditions like amount, periods and duration of transactions. This makes subscriptions an ideal market for pull payments. The potential use cases can range from content creators looking for monthly donations to any time of recurring revenue business model.There are currently no transaction fees to use the protocol. The only fees a merchant will see are gas fees associated with initiating a transaction because the protocol is on the Ethereum Blockchain.
The goal of PumaPay is to adapt Blockchain technology to payment models that are in use today. The groups that comprise natural initial customer base for PumaPay are the adult entertainment industry and other high risk industries like gaming and gambling. Merchants in the high risk sector often pay up to 15% in fees to credit card companies with settlements often delayed for many days or even weeks. Credit card charge-backs are even a greater problem for high risk businesses. These charge-back fees are borne in entirety by the merchant. Even worse is that if a merchant passes 1% total payments processed as charge-backs, then MasterCard & Visa will stop doing business with that merchant. For a business in the high risk category, losing access to Visa and MasterCard can be an existential threat to the survival of a company. This punitive action by Visa and MasterCard has put many companies out of business.
A major area of concern with crypto payments expressed by many merchants is the volatility risk of cryptocurrency. Merchants need to know how much they are getting in Fiat currency so they can run their operations. PumaPay solved the crypto volatility challenge by building a fiat settlement layer where rate of the PMA tokens are locked in a guaranteed crypto to fiat price conversion at the time of the transaction. This means that merchants do not have to use the PMA token or take on any crypto risk. They can get money right into their bank accounts faster than with credit cards due to the instant settlement of the PumaPay protocol fiat settlement layer.
PumaPay currently only accepts their own token (PMA) for payments. They are working on the development of the capability to additional tokens like DASH, BTC, XRP. in order to allow customers to undertake recurring payments in a variety of crypto currencies. PumaPay eventually will automatically convert BTC and other cryptos into PMA in order to run the protocol.This ability will also could make PumaPay a serious competitor to Bitpay and other current bitcoin payment gateways.
PumaPay has completed the platform and started with the early adopters joining the system. They currently have over 100 partners that have signed on to integrate with the PumaPay protocol. Representing the adult industry are of the biggest names like Pornhub and Vivid Entertainment. Wix.com is also one of the early adopters. PumaPay has not started the Wix.com integration yet but they are diligently working on it and the announcement will be soon. PumaPay is also currently working on plugins for woo commerce and Shopify. The Woo commerce plugin is scheduled to available in November.
Currently the team is on a roadshow in Asia after successfully getting their token launched in OkEx exchange this week.