Disruptive blockchain technology threatens credit card processors by eliminating fees
(February 5, 2019) Charleston, SC USA — Crypto For Merchants today announced a new safe, stable cryptocurrency point of sale payment ecosystem for merchants in the United States. With this technology merchants can now accept cryptocurrency payments from their customers at point of sale, convert those payments to dollars and transfer them to the bank account with no transaction fees, costs or risk of devaluation. Customers pay a small network fee of a few cents when they send their payment to the network. This fee rewards cryptocurrency miners for performing the cryptographic calculations required to confirm the transaction.
“This is a game-changer” said Gerald Zuckerwar, a developer and promoter of this technology. “In the fall of last year the new USDC (US Dollar Coin) cryptocurrency stablecoin was launched and in conjunction with that we are now making the world’s first compatible POS app available for free on our secure global content delivery network.” Other cryptocurrencies did not see much merchant adoption because of their price volatility which made them unsuitable for use in commerce. “USDC has eliminated that risk” said Zuckerwar.
USDC is a new Ethereum platform cryptocurrency created by Circle and Coinbase, the founding members of the CENTRE Consortium. USDC is “issued by regulated and licensed financial institutions that maintain full reserves of the equivalent fiat currency.” Customers can purchase USDC 1:1 with fiat dollars and merchants can sell those same USDC 1:1 for fiat dollars with no loss of value and no fees via their Coinbase account. They can then transfer those fiat funds to their PayPal account or commercial bank account via ACH again at no cost. The issuer of USDC earns interest on the fiat dollars while in reserve which is why they can offer this service without fees.
The point of sale app is called Dappos and is hosted on the CryptoForMerchants.com website. The open source software was developed by Luca Ban in Tokyo because “there was no POS app for Ethereum to our knowledge, so we made one.” It is a web-based app that works on any computer, tablet or smartphone browser with an internet connection. Merchants “ring up” the transaction on the app which then displays a QR code that customers scan with their digital wallet. After the customer sends their payment Dappos continuously monitors the blockchain until a confirmation is received. The basic app is free for merchants to use although a more feature-rich subscription version with customer support and an uptime guarantee will be offered in the future. “We’re going to wait and let merchants tell us what features they would like to see” said Zuckerwar.
To get started merchants can download a free Merchant Guide which will provide them with a basic understanding of cryptocurrency and blockchain technology. It then walks them step by step through the setup and usage of the Dappos app. Zuckerwar suggests that merchants offer their customers an incentive to adopt the technology. Coinbase currently offers new users $10 in free Bitcoin when they sign up and purchase $100 worth of cryptocurrency. If they use a referral code the merchant also receives $10 in Bitcoin. They could offer that back to the customer as a credit which results in a total $20 incentive to the customer.
“While today transaction times take about 3-1/2 minutes to confirm, developers are hard at work to bring next generation scaling technologies to the Ethereum platform” said Zuckerwar. “I think we’ll see that roll out in 2020 just in time for increasing cryptocurrency adoption.” The 3-1/2 minutes can be reduced to about 1 minute if the customer offers a higher network fee to the miners when they transmit their funds. Some digital wallets such as Trust Wallet have this functionality and Coinbase has plans to add it to theirs. “Yes, it’s a bit slow today but for merchants that are sick and tired of credit card companies skimming huge fees it’s here – now – and it works” said Zuckerwar.
About CryptoForMerchants.com: https://cryptoformerchants.com promotes merchant adoption of safe, stable cryptocurrency at point of sale. In addition to training and educational materials the website offers the free Dappos POS app via a secure global content delivery network.
About Coinbase: Founded in June of 2012, Coinbase is a digital currency wallet and platform where merchants and consumers can transact with new digital currencies such as USDC. Coinbase is based in San Francisco, California and has over 20 million users.
About USDC: USDC is a fully collateralized US dollar cryptocurrency stablecoin and is based on the open source asset-backed stablecoin framework developed by CENTRE. USDC offers detailed financial and operational transparency, operating within the regulated framework of US money transmission laws, with established banking partners and auditors, and is built on an open source framework with an open membership scheme that eligible financial institutions can participate in.
About Ethereum: Ethereum is a next-generation decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property.