[ad_1]
HodlX Guest Blog Submit your post
Crypto's startups are betting that cryptocurrency payments in supermarkets and cafes will be omnipresent in a short-term horizon. Digital currencies, despite their benefits, are unlikely in the last phase of the evolution of payment methods, but few startups that quickly and comfortably pay for cryptocurrencies are now entering the market.
Let's briefly review the history of how cryptographic payments were born and evolved and take a look at the kind of retail-oriented solutions that exist today.
"Your cappuccino sir, two dog's teeth, please."
Apart from gold and silver, which were used as money at least from the 3rd century BC, a variety of objects could be considered as basic currency: wheat, salt, flax, cattle, dried fish, teeth of dog, shells of tropical molluscs or stone disks.
& nbsp
Two thousand years ago, the idea of not even bringing money around appeared. On the island of Yap, in the Pacific, buyers paid for goods in stone "coins" – huge limestone discs that weighed up to four tons. The inhabitants simply left the big coins where they were lying, counting on them to make the transaction.
In the 19th century, the delay in the extraction of precious metals, which was the basis for the growth of the payment instruments necessary for trade, led to the spread of the paper issued by governments.
Your card does not accept my card
In 1914, cardboard credit cards were widespread in America. But the first payment card system adopted by the mass was created in 1949 by Diners Club. The system differed from all existing ones due to the presence of an intermediary who made payments between the client and the commercial companies. This allowed Diners Club to become a very popular and universal card.
So what about cash? As it turned out, the withdrawal of money from circulation can reduce the number of robberies, help manage financial crimes more effectively and save money spent on the circulation of banknotes and coins as the processing of electronic payments is much cheaper.
In some countries, the share of cash payments is now close to zero. In 2015, only 2% of payments in Sweden were made in cash. By 2020, this percentage will probably be reduced to 0.5%. The situation is similar in Denmark, Iceland and Norway. Rapidly developing countries such as India and China are moving in the same direction.
Nothing is good enough for millennials
But now both customers and merchants are no longer even satisfied with the cards. With the advent of NFC chips, the company has the ability to pay for goods and services in a single touch not just by card, but via telephones, smart watches and even wardrobe items. Consumer behavior of millennials – which make up 27% of the world's population – has had a significant impact on the creation of a cashless company.
The word "cashless" soon spread to the notion of a non-profit corporation, and cryptocurrencies and cryptographic payments came to the fore. In 2009, a few years after the appearance of the first "electronic cash" protocols and the idea of "b-money" cryptocurrency has been outlined, the world has heard of bitcoins. The first exchange of bitcoins for real assets took place the following year. Laszlo Hanyecz made the first documented purchase of a good with bitcoin when he bought two pizzas.
First solutions for retail sale
Cryptocurrencies have attracted both customers and merchants with inapplicable advantages to cash payments or card payments: anonymity compared to card payments; reduction of taxes and transaction costs – digital currencies are treated as assets rather than currencies, which is why encrypted transactions are not yet taxed, at least in some jurisdictions; rejection of paper checks: in-store purchases can be assigned to digital receipts, which could help the industry to become paperless; and fraud reduction – Bitcoin's blockchain makes counterfeiting difficult because it is a distributed ledger.
The titans of technology studied blockchain technology and were not too far behind in offering their solutions for retail. IBM turned to the blockchain in an attempt to improve supply chain operations. The company has developed a project to help Walmart improve the tracking of pork from China sold in its stores. The goal is to improve food safety by recording all the information on people and on the steps necessary for the storage of products.
In 2017 another giant, Microsoft, demonstrated its technology for creating smart self-executing contracts based on Azure Blockchain-as-a-Service. Contracts automatically apply agreed terms such as temperature restrictions, delivery times, collection date, etc. These contracts could help supply chains become smarter by saving time and money.
For customers: do not spend HODL
But here again a strangeness from the point of view of customers: the cryptocurrency was rather unsuitable for daily use because of their volatility and the lack of relevant infrastructure in stores. Most consumers do not use cryptography to make purchases, but make a choice for HODL (hold for dear life) and do not spend it, especially during periods of devaluation.
To make cryptocurrencies less volatile, their mass adoption is needed. In order for this to happen, consumers need an opportunity to spend their BTC or other encryption as easily as traditional money. Following this logic, a group of startups has created tools that make it easy for traders and consumers to make transactions using digital currencies.
A startup in Singapore, TenX, connects its digital currency portfolio to a Visa portfolio, allowing consumers to use a Visa card to spend crypto. Another company, BitPay, offers a Bitcoin payment integration to the point of sale, so that retailers can accept cryptocurrency as a form of payment.
A startup called Lolli rewards customers who buy from affiliated resellers. This blockchain-based rewards platform uses a & rsquo; browser extension to track purchases. Each time the user makes a purchase, the bitcoins are deposited in the user's portfolio. Ultimately, users can earn up to a third in bitcoins.
Another project called Beam brings the power of blockchain technology to payment gateways. Distributed in the United Arab Emirates, the company's terminals are now available in supermarkets, restaurants and service stations.
An app called Shopin allows buyers to check their personal information stored via blockchain, while helping retailers to reach customers more effectively. Using the app, each buyer can create his own profile and set purchase preferences.
Since the great challenge for cryptocurrency is acceptance as a real currency, Cyclebit has launched a technology that allows customers of 130 coffee shops in Europe to pay coffee with bitcoins via an app, both on iOS and on Android. . The startup already has access to a work ecosystem provided by Ibox, an omnichannel payment platform with a couple of hundred terminals.
The use of cryptography will unlock new revenue streams for merchants and entice cryptograph enthusiasts to spend their money, injecting new funds into the economy. The idea of all the startups mentioned above is to make the purchase and payment experience close to the pre-existing and known procedures for credit cards or contactless payments.
Although the whims of Generation Y are unlikely to be the last in the payment process evolution chain, the bottom line now is that the encrypted world has already had enough applications in real life, so it's time to lend much attention to the technology.
& nbsp
Disclaimer: The opinions of our guest writers are exclusively their own and do not reflect the views of The Daily Hodl. These opinions expressed are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and operations are at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrency or digital assets, nor The Daily Hodl is an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Check out the latest news
