What Satoshi Nakamoto and other pioneers of the crypto industry spoke about, namely, the creation of a full - fledged payment system and the elimination of intermediaries from it, acquires real outlines.

Request for a modern payment system

One of the reasons why cryptocurrencies have not yet become a popular means for online payments is their design. Almost all blockchains are set to record only one type of payment transactions - “send”. As they lead by example - Alice sends to Bob a bitcoin. What can Bob do? Make sure you receive the money and send the goods.

Smart contracts expand the functionality somewhat, they send funds under certain conditions.

But if you look at the payment system from the seller, it should provide much more serious opportunities. For example:

• the ability to use billing system;
• convenient billing solution;
• different payment options-upon receipt, regular with fixed and variable amount;
• elimination of fraud;
• the solution to the problem of chargebacks;
• accelerating the receipt of money by the seller;
• tariff reduction.

Under these requirements would be well suited to the payment system with different types of plastic cards, but it has significant drawbacks.

The system of payment by plastic cards

The existing system of payment with plastic cards for almost 70 years. When it was created, no one knew about personal computers or the Internet. The decisions that were invested in it are already morally and technologically obsolete. But until there is a real alternative, the cards continue to be actively used.

The main disadvantages of payment cards are:

• centralization;
• complex transaction processing scheme - only a small part of the process is displayed in the above scheme;
• a large number of commissions for sellers - from 3 to 15% of the turnover, and if you calculate the profit, the value is much larger (the table shows the typical, but not all, the Commission when paying 100 USD from the payment card);

• long time of receipt of money on the account of the seller;
• high risk of fraud;
• chargeback.

PumaPay System

System PumaPay based on the application Protocol direct debit Pull Payment Protocol.

It uses a blockchain, smart contracts and their development - PullContracts. All this makes the system convenient, flexible, highly scalable, efficient, fast and transparent.

The main objectives, which have set themselves the developers of the project are the modernization of payment systems, the creation of the economy and online billing based on the technology of the blockchain.

The PumaPay Protocol is open source, free and fully functional.

The system consists of on-chain and off-chain elements. The first perform all the functions of the payment system, and the second provide the convenience of users with the Protocol.

Onchain components include:

1. Token PumaPay (PMA) - the basis of ecosystems. It serves to transfer the cost. It is exchanged for any crypto or Fiat currency. It is an expanded token of the ERC20 standard to increase flexibility and transparency.
2. Smart contracts that provide recording of transaction information in the blockchain. First, the Ethereum network will be used, later it is possible to switch to other systems. PullContracts are built on the basis of smart contracts.
3. Accounts - public addresses used in the Wallet application to track the balance of the token. They have settings that can be made by the user for the convenience of work.
4. Authorizers - conditions that sellers can include in smart contracts. Thanks to these modules, PullContracts will be able to request and extract money from accounts.
5. PullContracts - special smart contracts that make payments between accounts. These are flexible and modular elements that allow sellers to create their own billing technologies, provide them to users, allow the execution of transactions and send them to the blockchain for execution.

Offchain - such elements as Wallet, SDK, API, PumaPay Server.

The wallet is used to view the balance, connect PullContracts and other components. There are two versions - mobile application and Chrome browser add-on.

The SDK is a set of tools for adapting the Protocol to the needs of sellers. Can connect third-party development companies (insurance, view and check the code of smart contracts, loans, billing services, etc.).

PumaPay API and Server - system verification and confirmation of transactions. They are a temporary phase of relatively centralized architecture. Subsequently, the Protocol will be fully decentralized.

Principle of operation

The algorithm of transfer of funds for the purchase is as follows.

To work with the Protocol, the seller is authorized on the PumaPay Server and receives the API key. The server interacts with the SDK, where the merchant previously sets the rules for transactions.

These rules are translated to all client wallets on their request (for example, before making a purchase). To access all the details of the PullContracts created by the seller, the customer scans the QR code provided to them.

During the scan, the information contained in the PullContract and the user's wallet are compared. If the data matches, the buyer signs the transaction with his private key and the data is sent to the server. The server checks the transaction and it is placed in the blockchain.

The sellers pay the Commission in PMA for sending the rules to the wallets of customers,

The algorithm and architecture of the system are not final and will be improved.

ICO

At the moment, there is a sale of PMA tokens. The preliminary stage is completed on may 7, 2018. What is sold on the presale is 20% of the total amount of tokens. Based on this figure, 4 times more tokens will be generated.

In total, it is planned to raise $ 150 million or sell all tokens. At the moment, the project already has 117 million dollars.

Contributions are accepted in bitcoins, ether, dollars and euros. You can get 50,000 PMA tokens in one broadcast. Altcoins can be paid, but then tokens are issued at the rate of 40 000 PMA/ETH. The exchange rate is taken from coinmarketcap.

Tokens will be distributed as follows:

• 20% on open sale;
• 20% will go to partners and early adopters;
• 35% will be used for the development of the system;
• 15% - payments to advisors;
• 10% are for founders and team.

Conclusion

In modern e-Commerce there is a great demand for solutions such as the PumaPay Protocol.

How developers put their ideas into practice will be important. At the moment, they have released the first version of the wallet, tested smart contracts for recurring payments, developed SDK and API templates, and audited the token.

The project team sees it as the future standard for all payments in online trading, and this is a huge market. There is every reason to believe that the project will be successfully implemented and will give a new impetus to the development of blockchain technology as an electronic payment system.

All additional information about the PumaPay project can be obtained from official sources:

WEBSITE: https://pumapay.io
TELEGRAM: https://t.me/PumaPay
WHITEPAPER: https://pumapay.io/docs/pumapay_whitepaper.pdf
ANN THREAD: https://bitcointalk.org/index.php?topic=2658299.0
TWITTER: https://twitter.com/PumaPay
FACEBOOK: https://www.facebook.com/PumaPay/
REDDIT: https://www.reddit.com/r/PumaPay/
BLOG: https://blog.pumapay.io

MY BITCOINTALK: https://bitcointalk.org/index.php?action=profile;u=1238493