Poor and Expensive Banking System Causes Merchants To Decrease Their Profits
How is a Merchant Work with Banks?
A Merchant is any business that sells goods or services. Merchants accept cards as a form of payment. So, merchants are any business that maintains a Merchant account that enables them to accept credit or debit cards as payment from customers for goods or services provided. With this pertinent information, we have to look how it is actually work. The basic data from
the web that you can Google it and easily find out gives us the comission rate of the banks. The comissions are very high. It is between %1 to %7 of the merchants’ income and it changes with it. Moreover, the comission rate directly proportional with the merchant’s income. Merchants have no choise thus, they have to use it and have to pay the high fees. Menapay want to create another way to help merchants and create new solution.
The Comissions Rates of the Banks
Lets look some examples. For instance, you have income that is 1000$ and your outgoings are 800$ so your profit is 200$. You have to pay %5 of 1000$ as comission to bank. It cause profit to decrease %25. It is %25 of your total profit! Furthermore, generally payment is given to you periodically per month. You probably can not get the payment per day. If you want to decrease periods, you have to pay more comission. In addition to these , you should
buy POS machine and make a commitment like 12,24 or 36 months.
Debit/Credit Cards Usage Rate of the MENA
In the MENA region %86 of the population is unbanked so, the usage of the credit/debit card is very few. There are 2 possible reaosns for these. Firstly, the credit/debit cards’ working principle is not compatible with Islamic Finance Rules. Regular banking tools are largely not used in the Middle East and North Africa Region due to the conservative practice of Islam and the poor banking system. The region also has a very fragmented structure with multiple currencies. MenaPay brings a 100% Islamic, non-bank digital solution, using blockchain to create a single currency to be used in everyday and cross-border transactions. Secondly, the high comission rates. Menapay comes with solution for that too. Merchants dont have to pay high fees. It is just about %1 or less of their income. With MenaPay, customers want to use the platform cause of green mining. Green mining is that every MenaCash transaction between Peer to Merchant has the chance to earn MenaPay tokens. After all, MenaPay will help both merchants and customers. MenaPay comes with the new payment system to change poor banking system. The help of the blockchain technology, payment innovation is coming true.
Think twice about poor banking system and the new opportunities.