Overtime, there have been various issues with the use traditional payment methods and there is a growing need for the provision of set of tools that will solve these issues. PumaPay is an open source pull payment protocol on a blockchain that offers payment mechanisms. Its blockchain solution brings about a payment method which is more credible, flexible, cost effective and scalable than the traditional methods such as credit cards.
PumaPay payment protocol features the unique architecture of pullpayment which are smart contracts that invert the mechanics of common cryptocurrency operations. Originally, cryptocurrencies were created to make direct transfers between two parties without the need for an intermediary and this mechanism is known as ‘push’. Although, it has been observed that the push process is not enough when it is being used on a wider scale for making payment, therefore there is a need for creating a pullpayment protocol which enables a pull action on the blockchain.
Pullpayment is supported by pull contract which allows users to not only push their transferred cryptocurrency to other wallets but allows them to also initiate a pull transaction from another account after an authorization has been given. Push payment allows money to be sent from side A to side B but pumaPay pullpayment protocol enables a pull action on the blockchain through which side B can connect to side A address through pull contract to pull out funds to side B account based on some authorization that has been initially given to side A.
With this pullpayment protocol, merchants will have access to the following:
(1) Various billing options which will accept cryptocurrencies directly, thereby replacing the credit card companies and other billing processors
(2) Comprehensive and flexible billing solution for addressing all common billing practices such as pay-per-use, recurring, etc.
(3) Elimination of possible occurrences of frauds, charge backs and associated fines.
(4) Reduction of transaction fees by eliminating the fees ranging from 3% – 15% charged by middle men.
Moreover, pumaPay’s protocol was designed to allow flexibility in transaction mechanics by making use of the innovative architecture to open the door to a whole universe of payment mechanisms which were not possible with the use of the push action. With the flexibility of the protocol, businesses have the opportunity to apply their processing business logic on blockchain.
There are two types of components in the PumaPay’s protocol which are the on-chain and the off-chain components. The on-chain components are used for representing the functionality of the PumaPay protocol while the off-chain components are used for making user interaction easier and more convenient.
PumaPay has identified the problems with the traditional methods of bill payment and they are proffering solutions to these problems. Credit card and foundation of online bill payments have not been modified according to the digital trading and this has resulted to merchants facing a lot of issues with the traditional transaction processing. Therefore, Pumapay is aimed at transforming the payment processing system through the development of foundation that can flourish cryptocurrency economy with a modernized protocol which is known as the PumaPay pull.
The Pumapay token will be only means for value transfer within the PumaPay ecosystem and this can be traded in an exchange for other cryptocurrencies or fiat. The token is the facilitator of the protocol’s unique functionality and the Pumapay ecosystem will completely depend on the PMA token functionalities. The company has designed its token economy to rest on four major pillars which includes the early adopters, launch partners, pumaPay pride and third party complementary service providers.
In conclusion, PumaPay has created the pullpayment protocol to overcome the problems of expensive and inefficient payment methods faced by retailers and service providers and this protocol will indeed be useful for promoting the use of cryptocurrency in both online and offline markets. Likewise, the use of cryptocurrencies as payment methods will be promoted.
Company Name: PUMAPAY
Contact Person: Media Manager
Country: United States