Invested a lot in cryptos, but can't use that capital or reinvest it to generate turnover? You’re not alone.
Did you know that there is $500B worth of un-invested cryptocurrency capital worldwide? Imagine having all that money injected into the economy: this would have been a huge boost. PumaPay is making it possible with its PullPayment protocol that enables crypto payments in daily situations. Let's take a closer look.
Reverse engineering at its best
PumaPay comes with a paradigm-changing "pull"-based protocol built around the PumaPay Token (PMA) and the PullContract. Hold on, "pull" not "push"?
Exactly. Unlike with other cryptos, when transferring tokens or funds from one wallet to another with PumaPay, instead of initiating a "push" action, the party you wish to send money to initiates a "pull" action, which translates into a PullRequest or permission to withdraw a specific amount from your wallet. By enabling this kind of action, PumaPay reverses the engineering of crypto payment mechanisms. For you as a user, it means that when buying something with PumaPay, you will not be the one paying the transaction fees – unlike with Bitcoin, for example. In cryptocurrencies, transaction fees are paid by the side who initiates the transaction. With PumaPay, the merchant 'pulls', so they will be paying the cost of transaction, not the customer (you).
Furthermore, because of its flexible architecture, not only does PumaPay's PullPayment protocol streamline crypto usability, but it also makes it more approachable. As a crypto enthusiast, you may probably know that a Bitcoin transaction, for example, can take 10 minutes if not more to complete.
In comparison, PumaPay transactions only take a few moments.
Okay, but how does that work exactly? Fair enough, let's see what PumaPay brings new to the blockchain and how it can solve the crypto usability problem.
PumaPay at work
PumaPay aims to solve the crypto usability problem by seamlessly integrating blockchain technology with day-to-day payment options. Yep, that's right! With PumaPay you can easily pay your utility bills, gym and magazine subscriptions, and literally buy anything from coffee to a house.
'But, this isn't this what we've been initially told about all other cryptos?' you might think... That is true, BUT there's a catch. Let us look at the Bitcoin example again. The so-called "queen of the cryptos" has enjoyed the spotlight of the media and the financial markets since its inception, which implicitly supported its surge and high price even now, when it has gone down a bit. The volatility is another reason why highly-valued cryptos such as the Bitcoin would not be a good option for micropayments. Huge overnight fluctuations in prices involve a lot of risk for the merchants accepting bitcoin, who might stare bankruptcy in the face the next morning should the Bitcoin drop overnight. For you as a customer, paying $16 on top of your coffee price would be too much, wouldn’t it? Payment with PMA, in comparison, will be a lot cheaper than the credit card fees we're all paying today.
Another reason why cryptos in general, not only Bitcoin are not a good deal for either merchants or consumers are the technical and financial intricacies that come with the platforms supporting crypto transactions. Let's take Coinbase for example, a big name when it comes to crypto trading. Thousands of crypto enthusiasts across the world use it to buy Bitcoin, Litecoin, or Ethereum, but one question seems to ferment in the mind of Coinbase users: is it trustworthy? To be able to withdraw funds from Coinbase, you are required to verify your bank account by depositing a small amount (anything above Euro 6) via a SEPA transfer. Well, that's where the torment starts.
Many users have been complaining lately about the difficulty of withdrawing funds, and in the era of social media, it's almost impossible to keep quiet about a product or a service especially when you're not happy with it. Here's what Trunkey, a Conibase user says:
‘I got as far as sending a 6 euro deposit via SEPA to link my UK account, but that was nearly a week ago and I still get the message stating I need to add a payment method to withdraw funds.’
And, you know what? Trunkey is not the only one. Many other users who have made significant profits encountered the same issue with Coinbase. 'They're a joke. They’ll happily accept a SEPA transfer for deposits but withdrawal using the same method somehow doesn’t work, transfer elsewhere and sell on LBC’, says another user on the same forum as Trunkey.
LBC stands for localbitcoins.com. Technically, by transferring their funds from Coinbase to LBC, people can sell their Bitcoins, Ethereum or Litecoin and get their money back, according to forum talkers. Too much hassle, let alone that in some cases your money simply gets stuck in there.
Not a pretty picture. That's where PumaPay comes into play (again). With PumaPay, all tokens are kept in your wallet and you can use them directly with merchants, without having to jump through the hoops of the Coinbase – LBC venture.
In a nutshell, PumaPay solves the crypto usability problem by bridging blockchain technology and payments as we perceive them today. Designed with the merchant in mind, the unique PullPayment protocol of PumaPay facilitates offline and online payment methods that are currently not supported over the blockchain. Imagine paying your affiliates for their marketing efforts in spreading your word or keeping your children's expenses under control while allowing them the freedom to use their own pocket money? PumaPay makes it possible. All you need to do is simply set a few parameters on your wallet and you'll be ready to rock.
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