Here’s Why We Started Rate3 Network
RateX started with a simple vision in mind: empower online shoppers by helping them pay less for online purchases seamlessly. We offer shoppers the most favourable mid-market exchange rates and zero transaction fees through a Google & Firefox browser extension. As our user count started to grow, we realized how invalid coupon codes were another pain point for online shoppers. We then built a feature that automatically searches and apply valid coupon codes at checkout.
Next, we launched our mobile solution RateS and added an additional feature: users can view trending deals and purchases as they happen live on the biggest online marketplaces such as Amazon, Taobao, Rakuten, eBay and more.
Launched in December 2016, our monthly gross merchandise volume (GMV) rose from $5,000 to $500,000 within a year. Normally, 100X growth in a startup is worth celebrating but there was a bigger issue. This growth rate is unsustainable. What we then realised was that existing banking infrastructures were unable to support the rapid, micro transactions required by our users without incurring high fees and long processing time on our end. This is a particularly big headache for cross-borders monetary flow, as seen below:
We had to artificially limit the amount of goods and services that our users can pay with RateX to make our product sustainable. This runs contrary to what my co-founders and I set out to do.
It really boils down to how money flows among e-commerce participants — suppliers, wholesalers, marketplace, payment facilitators, intermediaries— still remains rudimentary today. These intermediaries are typically banks or online payments services. Existing financial infrastructure is messy and closed, and not equipped for how the Internet will continue to grow. Apart from the additional transaction fees, the infrastructure remains slow and susceptible to fraud.
Moreover, we find it unjust why so many people - especially in the developing nations- have little access to financial services. They are unable to pay for goods and services online, even when they are already willing to pay more than they should. For us, this is a problem we are morally obliged to tackle.
Envisioning A New Solution
Frustrated with the current existing solutions, we were compelled to find a decentralized, efficient and accessible way to skip the intermediaries that make online transaction unnecessarily expensive. This thus gives rise to the Rate3 Network:
Rate3 Network is set to be the underlying payment network for e-commerce participants.
By using a single unified payment token within the ecosystem, all participants are able to pay each other for goods and services efficiently and cheaply.
We originally set out to re-imagine and create a new financial system that is fair and transparent to all participants. This means no opaque and additional fees for using any Rate products and we do not intend to waver in our vision for Rate3. With Rate3 tokens, consumers will pay the lowest exchange rate without any fees for online goods & services. Likewise, merchants are able to accept the payment without any fees. In this e-commerce ecosystem, there will be no unnecessary transaction fees for both consumers and merchants.
Mission of Rate3
With the Rate3 network, we want to achieve three things:
- Create a simpler infrastructure for establishing trust and incentives in e-commerce relationships
- Facilitate fast transfer of funds between the merchant and the consumer, for both cross-borders and domestic online purchases
- Establish a reliable and accessible credit scoring system for traditional lenders and capital providers
Powered by the Stellar blockchain (as detailed below), the Rate3 network builds trust and reputation via transactional ledgers. In turn, this holds all the participants accountable within the ecosystem and they will be less likely to commit fraud.
Beyond transactions, we also want to democratise financial freedom. Through the Rate3 credit scoring system, we help consumers access credit loans and wider access to financial services that are unavailable to them otherwise.
This last point is a moral imperative for us.
One grand aim of Rate3 is to create a globally portable and inclusive credit profile for all participants. Just like how we are committed to reducing unnecessary friction between merchants and consumers, we want to reduce the need for opaque, proprietary credit scores and unnecessary documentation for loan applications. We will be working with traditional banks and capital services by doing identity verification, credit risk assessment and scoring on the blockchain. Through the Stellar blockchain network, we will be able to extend credit to more participants in Southeast Asia (indirectly).
Before we can do all of the above, we need to find a partner who can offer a most suitable blockchain network to house the Rate3 ecosystem. A long and meticulous search led us to Stellar.
Why We Chose Stellar
Stellar is a blockchain network with a primary purpose of connecting banks, payment systems and people better. The core features of Stellar Network include low transaction fees, fast transaction speeds and easy exchange between different currencies with Stellar’s distributed exchange.
We can truly re-design the financial system and enable a world of payment without borders now.
Despite the many merits of the Stellar network, Stellar is still relatively new compared to both Bitcoin and Ethereum. Although we can conduct a token sale on Stellar directly, it would exclude many public investors who are more familiar with ERC-20 tokens and whom usually hold Ethereum wallets. Thus, our token sale will conducted through an initial issuance of ERC-20 tokens and these ERC-20 tokens will be swapped for RTE tokens in the near future. We have conducted extensive tests on TestNet and the team is more than equipped to do it after the sale is over.
Conceptualizing and re-designing a world of payment without borders takes a fundamental paradigm shift.
The journey to reach there would most definitely not be an easy one, but it would be worthwhile. We have assembled an amazing team of developers, designers, marketers and garnered the support of reputable advisors to help us in this journey. Our advisors come from various backgrounds — from fellow startups to sovereign and mega private equity funds. The wealth of diverse experiences they bring to us is immensely valuable.
Today, we open our token sale to you.
Tomorrow, we open the financial system to all.
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