In this blog post we will highlight several frequently asked questions that Human Plus team has often received. We aim at creating a truly human-centric payment solution therefore we take into account every concern and question seriously.
Below are some of the most common questions we encountered:
- “How can I use HUPAYX platform and its payment services if I don’t have a bank account and only use cash?”
This particular question came from the conference visitor from Africa.
Human Plus team knew about this issue, as not all people in the world use credit cards, QR codes, NFC card payment methods, and that payment methods used can be greatly varied based on region and culture. HUPAYX crypto based payment solution developed by Human Plus, is not tailored for a particular country like Korea, but rather made for everyone by providing convenient cryptocurrency based payment platform for people all over the world, therefore we have also carefully checked the usage patterns for various countries.
In order to make cryptocurrency based payments, people usually connect their personal bank accounts to purchase crypto from the exchange, or to deposit it through virtual accounts. However, this is may not be possible in countries where people don’t have access to bank accounts or where people generally don’t have trust in banks.
Nigeria, which can be said to be one of the biggest economies in Africa, has 60 percent of its population living without bank accounts. That’s around 118 million adults without any kind of bank linked cards. Nigeria’s mobile penetration is high, but only 6% of mobile phone users are using mobile payments. However, Human Plus has found a solution thanks to high mobile penetration rate and a large number of smartphone users. Electricity users in the entire African continent are about a quarter of the population, which means that access to electricity and technology is low, but in many parts of the African continent, like Nigeria, smartphone owners outnumber electricity users.
So, Human Plus plans to provide a blockchain-based cryptographic payment platform by partnership with mobile phone service providers and related businesses, people will be able to purchase crypto or regional digital currency with cash and charge their wallets at local smartphone or telecom stores.
If users purchase crypto at our local Alliance partner and uses it in their smartphone for payment, it will be able to purchase the product in crypto without exchanging it anywhere in the world.
2. “What is the currency exchange rate of HUP and H-Point?”
1 HUP = Will be revealed Soon!
1 HX Point(Token) = 1,200 KRW = 1 USD (Internal HUPAYX Newtork Stablecoin)
ETH, BTC, Litecoin, other cryptos, currencies such as KRW, USD, as well as our own HUP must be converted to HX Point first in order to pay inside of HUPAYX network -> this will be done by either converting desired crypto to HX Points beforehand or on the spot before transaction. Customers can earn HUP within HUPAYX Network per payment, transaction and by viewing ads (coming soon). HUP will be publicly traded on Exchanges and can be redeemed in fiat.
3. “Which stablecoin do you use?”
Inside of HUPAYX Network we utilize an HX Point (Token) → our Internal Network Stablecoin. Cryptos that originated outside of HUPAYX network such BTC, ETH, LTC and others must be first converted into HX Point in order to be paid with.
Our official stablecoin called ‘H Coin’ will be developed and introduced later. Meanwhile we can also use Tether as it is one of the most widely used and acceptable stablecoins in the world. Every tether token is backed 1:1 with the US dollar therefore it’s always worth $1.
It is also possible to use stablecoins issued by the listed exchanges in Korea or abroad, as well as stablecoins issued by the banks in cooperation with HUPAYX. In addition, as HUPAYX solution infrastructure starts distributed to the global merchants in a much wider scale, we plan to issue a our own separate stablecoin. We will implement it based on various examples and new methods rather than existing monetary pegging method.
4. “How can I purchase crypto? And what cryptocurrencies are supported?”
The HUPAYX payment solution consists of HUPAY user wallet, H-POS (Mobile or point of sale terminal) and internal DEX (Decentralized Exchange). HUPAY wallet supports various coins, so you can either transfer your existing coins from your other wallets or purchase them directly from HUPAY wallet. Crypto can be also easily acquired in a W2W (wallet to wallet) or P2P basis.
HUPAYX’s own HX Point (Token)comes with some extra benefits. What makes HP unique is that by paying with points within HUPAYX ecosystem will yield more discounts saving tons of money
HUPAYX will support several top cryptocurrencies such as bitcoin, ethereum, litecoin and more. Most importantly HUPAY wallet will support coins and tokens issued by our Alliance partners (HUPAYX Alliance Group members) who contribute to HUPAYX ecosystem.
5. “What differentiates HUPAYX from other cryptocurrency payment systems?”
HUPAYX is an all-in one payment solution based on blockchain technology that utilizes cryptocurrencies as a means of payment in everyday commercial activities using mobile wallet, mobile pos and hardware pos terminals. This payment solution works as an infrastructure combining various services including Payment, Stable Trading, Wallet, Remittance, Discount/Incentives and Alliance Group. The idea is to introduce crypto based payments to real life applications in the most natural and non-disruptive way. That’s why besides crypto we also accept fiat based payments with a clear underlying benefit towards those who pay with crypto. Such as 0.5% transaction fee and exclusive discounts for those who pay via crypto or our coins (HUP and H Points)
Moreover, HUPAYX’s blockchain payment system is based on an internal DEX, meaning all crypto based transactions are automatically converted into a stablecoin which enables us to avoid volatility due cryptocurrency fluctuation. Other cryptocurrency payment service providers just collect and balance all cryptos at once in a system that is managed without internal exchange. As a result you can’t deal with the price change that is accruing after the payment. If you get paid in cryptocurrency and leave it without withdrawing, then there’s no way you can get the exact amount the next day.
Another significant difference is that we provide our POS systems for free to our merchant network with some paid advanced add on features that will be implemented later. Our mobile H-POS can be easily downloaded to merchant’s smartphone and for large merchants we provide a certain amount of free H-POS terminals (The only thing we charge is 0.5% per transaction and 0.2% for total withdrawal of accumulated money for merchants). For users (customers) the user wallet is free as well.
6. “Can I see the purchase or order history on HUPAY Wallet and HPOS?”
Yes, both HUPAY Wallet and HPOS allows its users to see all past transactions with an actual copy of the receipt in your payment/sell history.
Some of the add-on functions in HPOS includes advanced administrative settings, as well as staff management, weekly/monthly reports and tax settlement management.
7. “What makes HUPAYX a human-centric payment solution?”
We consider people’s needs and choices they make in their everyday life. We understand that both customers and merchants go through in their everyday purchasing/selling routine and what inconveniences they face in that process. At the end, both customers and merchants are humans with needs.
HUPAYX wants to solve problems such as scalability, applicability and affordability that are not solved by current blockchain based payment solutions. This is because HUPAYX payment solution wants to be implemented and effectively utilized in real life - everywhere around the world.
8. “Do merchants receive their payment only in Fiat or can the they choose between Crypto and Fiat?”
Merchants will generally prefer Fiat, since there is much gap in understanding and trust in cryptocurrencies. However, depending on the merchant’s preference, it can be exchanged for the desired coin or Fiat currency.
9. “What are the partnership terms? What steps should I take if I want to become a your Alliance Partner?”
To become a partner, a company can sign up for a partnership by sending proposal with ideas on ways that both parties can benefit from this partnership. Providing info on market share, awareness, size of user base, etc. Providing a company introduction sheet (including sales and business status) and emailing it to firstname.lastname@example.org It is important to avoid confusion by mentioning in Subject Line to which category business belongs, such as: franchise, NGO, Government, Entertainment, Hospitality, Tourism, etc.
10. “Where do you currently have partnerships, and what industry representatives do you want to partner with?”
Presently at home ground (South Korea) we are in the final stage of the agreement with local governments for local currency-based services. Where we digitalize their local currencies in a form on tokens that can be used by citizens in their everyday life (transportation payments, utilities, pension, gift cards, etc). We plan to propose this system as a case study to other governments around the world who are more open to blockchain implementation.
We welcome companies from any industry that could benefit from HUPAYX services. Below is our infrastructure diagram and Alliance Group is one of the core parts of the ecosystem.
There are three stages of partnership: agreements, contracts, and consultations. The agreement (MOU) is a pre-contract form with binding or non-binding details. A contract refers to the specific action plan and actual solution implementation and execution, and lastly consultation refers to a positive review of the agreement, prior to the contract.
Among our existing contracts are LGU+, Arnold Hong, KIS Telecom, and more. Some of the agreements are underway with global financial companies and global remittance service providers.
Our current list of partners can be found below:
11. “Will you be introducing HUPAYX abroad or only in Korea?”
Korean market which has many restrictions on the actual use of cryptocurrency, can be quite difficult. Thus, the HUPAYX solution will provide two types of services consisting of fintech (without blockchain) and crypto based services.
Global market holds great potential for us, therefore we will be aiming at markets that are more favorable towards crypto adoption, that has lower credit card usage and where cash predominantly used as the main payment method.
12. “What are the main benefits of HUPAYX solution?”
HUPAYX is not designed to benefit only one party. Our goal is to establish a win-win model for customers and merchants by imposing 0.5% transaction fee, which is significantly lower than the fees of the existing credit card processing companies (Visa & MasterCard). Plus, with a short 3–6 second transaction time, you don’t have to wait long (a common problem with blockchain based transactions is that they take too long).
Exclusive marketing promotions HUPAYX solution provides for its user base are derived from its affiliated merchants/businesses network. One of the main functions that distinguishes us from existing services is that you can easily make an overseas remittance and payment as long as both parties are using HUPAY wallets (The transfer service is free, only the receiver upon withdrawal will have to pay designated tax fee).
More Technical Questions:
13. “What platform architecture are you building on?”
HUPAYX is build on a triple layered platform architecture which consists of ID / PW authentication layer, Exchange layer and Oracle layer. These layers enable safe and convenient payment services across HUPAYX ecosystem.
The platform is utilizing BFT (Byzantine Fault Tolerance) and DPOS (Delegated Proof of Stake) Consensus Algorithms. The method handled by DPoS algorithm can work with limited number of nodes rather than by an infinite node in a blockchain, which enables rapid processing speed. Typical example can be EOS’s consensus algorithm.
The BFT assumes that if a node with some impure intention is deemed to be unable to reach a consensus among the blockchain nodes, the DPOS’s validators are set to solve this problem. This implies that the algorithm can reach consensus as long as 2/3 of the nodes are honest. (See Game Theory)
14. “If your fee is 0.5% and you are building on Ethereum or Cosmos or any other blockchain platforms. Doesn’t it add more fees to your 0.5% structure? How do you combat that?”
Fee policies are the basis of the business model, and the way the service is implemented by creating a platform from scratch is not appropriate for the HUPAYX system. It will take a long time for the service to be activated even if a large number of development personnel are to build a platform. Cosmos’ net fee will be set at around 0.05 percent. As the number of verifiers grows, this may be reduced even further. The net transaction fee is paid by HUPAYX. As more users grow and their own nets are developed, those fees will be carried by commercial users.
15. “How many TPS (transactions per second) can you process?”
It starts at about 5,000 ~ 10,000 TPS, and we want to improve this performance by considering implementing smart contracts, overheads, and other innovative solutions.
16. “How did you build your wallet: on NEO? Ether? If not, did you separately added Bitcoin, Ethereum and other algorithms?”
The prototype was developed with ERC20 and we intend to make a modified version of Cosmos Wallet based on Tendermint.
We want to solve the problem by adding security policies and solutions of bank security level.
17. “What is your revenue model?”
Our revenue model is as follows:
#1. Enterprise Model: HUPAYX Solutions System integration (SI) and Maintenance (This related to our project with local government on implementation of digital local currencies — this is Private Blockchain based project)
#2. POS Transaction Fee (Merchants are charged 0.5% per transaction + as HPOS works as a store wallet it accumulates stablecoins that later can be withdrawn as fiat by merchants to their bank account, we charge 0.2% from total withdrawal)
#3. HUPAYX solutions based on Hybrid Blockchain (For ex: If we are to partner with top cross-border remittance service provider that agrees to link their platform to HUPAYX solution then we can gain extra revenue from transaction fees, same goes to linking HUPAYX to AIRBNB, UBER etc.
Therefore we stress an importance on building strong Alliance Group.
18. “How do merchants cash out or transfer the crypto to fiat into their bank accounts?”
In HUPAYX network, the exchange rate of all currencies and cryptos is automatically determined and cleared:
#1. Through partnership with USDT, as well as stablecoins issued by other banks or escrows, the merchant can exchange the Stablecoins that he/she accumulated for cash.
#2. Depending on future investments and services, the company plans to issue its own stablecoin after consulting with financial institutions such as banks (co-issuing with the banks).