Introducing mopayd, a mobile payments company powered by stablecoins on the Ethereum network
TLDR;
App allows users to instantly send and receive stablecoin payments, enabling stablecoins to be used in a much larger range of applications like point-of-sale. Additionally, it makes it easy to search for and pay by username as well as track payment receipts by customer.
The benefits of mobile money to consumers
It is widely accepted that mobile payments yield substantial benefits to consumers, not least because of the ability of these payment mechanisms to offer a secure, cheaper and more convenient method for people, particularly in poor or rural settings, to send and receive money (Klein & Mayer, 2011). This includes the ability to bring people that were previously not catered for under traditional payment systems into more formal systems of transacting. This contributes substantially to increasing financial inclusion. A key component driving the penetration of mobile money and electronic payments in general, across several countries, is the ability of these platforms to disaggregate, or unbundle, the services traditionally offered by banks into less expensive and accessible platforms (Klein & Mayer, 2011; Zollmann & Cojocaru, 2015).
Mobile payments systems largely compete with formal mechanisms offered by banks, as well as cash-based and informal systems. The former is a dynamic growth area in terms of competition, in so far as MNOs have drawn in people who were previously unbanked, as well as some proportion of traditional bank clients. In turn, banks increasingly offer mobile banking and mobile money as value-added services to their customers, although this relies on the infrastructure of mobile operators.
https://pdfs.semanticscholar.org/7526/eab68ea44a5d4e7cf36df2b9abdf3c245e51.pdf
What is a Stablecoin?
A stablecoin refers to a new class of cryptocurrencies which attempt to offer price stability and/or are backed by reserve asset(s).(Investopedia)
What Stablecoins are there?
Paxos Trust Co. and Gemini Trust Co were launched last year with approval from New York regulators, which was a first.
That means the dollars used to purchase these tokens — the Paxos Standard and Gemini Dollar — are held in trusts or banks, audited regularly and regulated by the New York Department of Financial Services, adding an extra layer of protection, according to the companies.
Two other stablecoins, USD Coin and TrueUSD, aren’t regulated but the companies behind them say their approaches are designed to minimize risk. USD Coin is managed by a consortium of companies, including Coinbase Inc. and Circle Internet Financial Ltd., so that no one company controls the digital currency’s fate, according to Emre Tekisalp, the USD Coin project lead at Coinbase. TrueUSD, created by TrustToken, holds its collateral in multiple third-party trust companies to reduce risk for investors, says Jai An, TrustToken’s CEO. (WSJ)
Market supply
USDC — $444 Million
TrueUSD — $200 Million
Paxos — $238 Million
GUSD — $9 Million
Dai — $78 Million
*data from Coinmarketcap.com
Who this app helps best
People
· Where weak foreign currency policy has left local currency hyper inflated
· Where corrupt governments threaten personal property rights
· Where there is weak or non-existing banking infrastructure
· Send remittances for much cheaper than alternatives like Western Union
· That want complete control of funds in the payment lifecycle
Businesses with/or that want:
· Weak or non-existent access to payment processing
· Fast payments (we work as fast as credit cards and payments settle faster than wire transfers)
· Want lower fees than credit cards (we charge 1% + market price gas cost to transact on the Ethereum network, typically $0.03–0.20)
· No chargebacks
· Want to accept alternative digital currency like TUSD, USDC, or DAI (a stable coin pegged to the USD, backed by collateralized Ether)
· Have a need for access to a network that provides a connection to the US Banking system. The recent rise of digital token stable coins, help address part of the problem. Our app provides a user-friendly way to send instant payments while also complying with AML/KYC laws
How our app works
• User deposits funds to smart contract via mobile app from private wallet
• Users can search for other users by username
• User signs a transaction with the amount to pay and wallet address (which is provided via app), which is then sent to a processing queue for settlement.
• The merchant balance is updated on app immediately, but it may take up to an hour for the transaction to settle on the Ethereum network.
• Once the funds have settled on the network the user can send a request to withdraw the amount received.
• User must send a request to withdraw to prevent users from withdrawing when they owe money. We can only prevent withdrawal of funds for approximately one week but we cannot at any time seize customer funds due to the decentralized nature of the smart contract.
Smart contract code publicly viewable and verifiable here: https://etherscan.io/address/0x1292463b22ed4cb340c737fbc046258fb428f27c#code
What the WSJ says
Eventually, supporters say, stablecoins could be used in a variety of ways, including in the creation of payment systems for people in developing countries who don’t have access to banks. Some analysts, however, say this won’t happen soon.
“Many countries don’t have the infrastructure,” says Larry Cermak, head analyst at crypto research firm The Block. “You can’t do much with [stablecoins] unless someone accepts it. The only thing you can do is send it to people — unless you convince merchants to accept it, which isn’t happening. That’s years off.”
https://www.wsj.com/articles/why-stablecoins-stand-out-in-the-cryptocurrency-world-11560218460
When can I start using the app?
Right now! Follow this link to download the app. https://apps.apple.com/us/app/mopayd/id1479303782?ls=1
