PumaPay Breaks Barriers for the Little Guy

hatu (76)in #money • 6 years ago

You’ve probably heard it before: card networks are expensive. The reality is, every company in the payments sector offers a rather expensive B2B service; this is largely due to the fact that the existing networks are extremely costly to operate and the companies in this sector have large profit margins since their importance allows them to assert their demands.

Small businesses have to hand over 3% of their sales to companies like Visa; if you’re a small business aiming for e-commerce, the cost can be even higher as you could be paying the 3% plus a fixed 30 cents per transaction.

Interestingly, Square, a product designed to offer POS systems to small businesses, charges as much as 3.5% plus 15 cents per transaction. Between payments to Visa and POS system providers like Square, a small business could have to pay as much as 6.5% plus 45 cents per sale. This is ludicrous.

A Brutal Setup

You already know the figures small businesses are charged are far higher than the ones major corporations pay. Small businesses struggle to compete with big companies as it is; the expensive payments processing only makes the situation worse.

Large companies like Walmart and Amazon are able to establish special deals; it’s rumored that Walmart pays as little as 1% to Visa. While it may seem like just 2% less than what small businesses pay, keep in mind that’s a 67% slash. Additionally, these figures are on sale value, so these tiny processing fees are what allow Walmart and other massive retailers to keep their margins hair-thin.

Time for Change

The current payments market is brutal for small businesses and it puts them at an immediate disadvantage. But the blockchain movement is designed to empower everyday people, and some of them happen to run small businesses. A new blockchain-powered product, PumaPay, is about to disrupt the payments sector. PumaPay utilizes a revolutionary pull pay payment protocol; this will secure merchants against fees attached with chargeback fraud.

Additionally, PumaPay aims to facilitate its payments through its own blockchain, designed for razor-thin fees. The result is that merchants will have access to a singular payment protocol that internalizes all the payment infrastructure. By utilizing its own blockchain and its own native currency, PumaPay will offer merchants many cost-reducing benefits.

Merchants won’t have to hash out two separate fees—one for the card network and one for POS system provider. Additionally, even the single fee that they would have to pay would be far lower than any of the individual fees charged by card networks or POS system providers.
Small merchants participating in e-commerce will be able to process transactions for foreign users without having to face any extra fees since PMA tokens will be native currency throughout PumaPay’s payment network and people from all countries will be utilizing it.

PumaPay is paving a future where small merchants wouldn’t be disheartened when a customer decides to not pay with cash. Instead, this will be the development of payment network that will allow small businesses to affordably expand their potential online even beyond their borders.