Bringing Utility Bills into the Cryptocurrency Age

One of the most exciting use cases of the PumaPay pull payment protocol is the ability to set up Recurring payments based on time with a variable amount. With this feature, payments such as utility bills can be paid through the PMA wallet with no fuss and within seconds.

PumaPay’s Wallet and on-chain architecture allows for PullContracts to automatically withdraw a varying amount of money at predetermined intervals. A Limiter is integrated to make sure that this system is not abused and is secure. The user must accept every PullContract that wants to integrate with the account.

Limiters are an essential control tool when dealing with an automated system. They mean that the utility company can’t simply take any amount they want, but rather are limited by a maximum set by the user and easily modified depending on need.

The Electric Example

Let’s take the example of an electric bill. Our user, let’s call her Sarah, has recently moved into a new apartment and needs to take care of the utility bills. Since her electric company has integrated PumaPay into their billing, Sarah can choose to have the payment through a PullContract when setting up her account with the company. Once she’s picked PumaPay as her payment method, the following steps occur:

  1. A PullContract is created by the utility company’s web app using the PumaPay SDK.
  2. A QR code that links to the PullContract is given and displayed to Sarah.
  3. Sarah can scan this QR code and get the details of the contract, which states that it can withdraw a variable amount from her account monthly with this amount being dependent on her electricity consumption.
  4. Sarah knows that her electric bill will never be more than $100 so she uses her wallet to put an indexed Limiter of the real-time equivalent of $100 in PMA with this PullContract.
  5. Sarah accepts the PullContract; it is stored on the Token Contract and Sarah is connected to the power grid.

Now, each month, the electric company can charge Sarah automatically for her electricity consumption without the need for paperwork or any bank transaction. The payments are made automatically, but Sarah can be secure in the knowledge that can never exceed 100$.

Thanks to PumaPay’s PullContracts, utility bills can finally be modernized to implement cryptocurrency payments with ease.

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