The Startup That’s Using Blockchain to Disrupt the Payment Processing Industry
Blockchain is fundamentally changing every business, from banking to agriculture and logistics. What experts thought would be the decade of mobile is turning out to be the decade of blockchain.
Although blockchain has been implemented by many industries, payment processors have virtually ignored the technology.
Spot Systems, founded by a group of high-profile serial entrepreneurs in Toronto, is disrupting the payment processing business using blockchain technologies. The company is planning an ICO (initial coin offering) in November of this year. (Read: “WTF is an ICO?”)
Currently, the fastest payment processing systems allow users to transfer money between one another, and to their banks in 72 hours, and charge a 2.5-3% fee. Utilizing blockchain, Spot Systems is reducing the cost of payments to 1.5%, and allowing near-instant processing.
Blockchain infrastructure is allowing the Spot Systems to increase transaction transparency and prevent fraud on the platform. The payment processing business, now with more than $40 Trillion in annual volume, is set to make way for Blockchain, from providers that are nimble enough to incorporate the technology.
Competing with current payment processors such as Stripe, Paypal and Western Union, Spot is aiming to take market share by providing consumers with lower fees and a system that uses blockchain to rule out the possibility of glitches and malfunctions.
The co-founder of the company, Alex Gillis, was featured on Canada’s hit show Dragons’s Den, and has worked on several successful startups including MicroCent Technologies and Catalyst. Konrad Kuhne, an entrepreneur who recently sold Northern Ontario’s largest logistics company, is the other co-founder of the company.
The company’s technology is already far along in development by a team of engineers lead by the company’s CTO Kshitish Balhotra, who has worked on several successful ICO’s.
Disrupting a business as large as payment processing is no easy feat, but Spot Systems appears to have the technical and operational capabilities to take on the task.
About the Author: Jacob Wohl is the CEO and Head of Fixed Income and Interest Rates for Montgomery Assets, a proprietary trading and asset management firm based in Los Angeles, CA. Jacob Wohl is the host of the Offended America Podcast