Idea: 28
Wednesday, 28 January 2015
By. Francis Pedraza
Payback
- Square Cash lets people send and receive money — instantly, effortlessly, no fees.
- Lending Club lets people receive personal loans from private and institutional investors.
- Payback lets people set up “smart contracts” to auto-pay with simple parameters
Examples:
- Suppose you lend $1,000 to your friend Sam
- Instead of relying purely on trust, use Payback
- Set the interest rate, and date that full repayment is due
- Sam taps “agree”, puts down his credit card, and picks his installment plan
- Suppose you sublet your apartment (say, to travel for a few months)
- Same as above, except this time there’s a security deposit, and no interest rate
Contingencies:
- The lender can change terms in favor of the borrower at any time
- If borrower wants to pause payments, he has send you a request in the app
- Technically, the “agreement” borrower taps/signs on phone, legally obliges repayment
- Provide simple enforcement steps (credit score ding?)
What’s significant about this is combining contract + payment, in the same structure.