Blockchain technology is undeniably one of the 21st century’s key innovations as it has not only disrupted the payments industry but is now being utilized to unlock previously unimaginable potential. To truly appreciate how blockchain has disrupted the payments industry we need first understand how the technology works.
The seed that builds the foundation of cryptocurrency, Blockchain is essentially a public database that is available for anyone to view, that keeps track of every single transaction within the databases ecosystem. The system uses a peer-to-peer network to send and receive digital currency, the rest of the users or “nodes” on the system keep a record of all the transactions and confirm that the transactions have taken place.
Blockchain Revolution author, Alex Tapscott, characterized the blockchain as “an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
The network has no central authority as it relies on a system of peer-to-peer security to verify and secure all transactions. The blockchain
How has it Disrupted the Payments Industry?
Though blockchain is still relatively a new technology, it has rapidly disrupted the payments world due to the fact it addresses a lot of real-world pain points currently associated with more traditional methods.
Low Fees – Compared to traditional bank transfers, which incur extremely high fees, cryptocurrencies have extremely low fees. This is due to the fact there are no middlemen incurring transaction fees. Traditional transaction methods incur costs from payment providers, banks and further middlemen.
Security – Your cryptocurrency is kept permanently on the blockchain and to get access you need your personal encryption key which is a seed phrase known only to you. With no centralized
Privacy – Cryptocurrencies give complete privacy to users as there is no centralized entity processing the transactions. Instead the transactions are sent directly between users. Though blockchain technology keeps a public record, the record is scrambled numbers due to encryption with no personal details attached.
Accessibility – Cryptocurrency can be accessed by anybody with an internet connection as opposed to needing to go directly to a bank to open an account and use their services. This frees up access to a lot of less developed countries that potentially would not have had prior access.
Borderless Payments – Sending and receiving international payments using traditional bank transfers is an expensive, slow process that can take up to five business days for the money to reach its destination. With international wire transfers, the banks will also charge a high transaction fee on top of giving the customer an exchange rate favorable to the bank. Cryptocurrencies are borderless currencies. There are no physical restrictions tying to them to one specific location. One bitcoin in America is worth the same as one in Singapore and can be transferred and used anywhere in the world.
How is PumaPay Taking Advantage of Blockchain Technology?
PumaPay is based on the PullPayment Protocol which utilizes an architecture of smart contracts. At its essence, the PullPayment Protocol allows the merchant to connect to the customer’s wallet and ‘pull’ the funds based on a set of predefined terms that were pre-approved by the customer. PumaPay’s PullPayment Protocol enables various payment scenarios, including, for example, subscriptions, top-up, and pay-per-time billing models which have been impossible on the blockchain before. So, what we have done is create a comprehensive system where our cryptobilling can be used by both businesses and individuals. Our PumaPay cryptocurrency mobile wallet app, which has already been released for both iOS and Android devices, supports BTC, ETH, PMA, LTC, BCH, and all ERC20 tokens, with more cryptocurrencies to be added in the coming months. Users can manage all aspects of their subscriptions within the wallet, without the need to contact banks or merchants. For businesses, we have designed a Business Console where they can create PullContracts, manage their payments, gas fees and subscriptions. Moreover, with our marketing hub, PumaPay Pride, businesses will be able to expand their customer base by reaching more crypto holders worldwide, running campaigns and promotions directly into customers’ wallets.