Current Digital Payment
Other forms of digital currency aside from crypto have been utilized daily by people all over the world. In direct contrast to the slow-paced introduction of cryptocurrency to the general public, other forms of digital payment are gaining traction in an unprecedented pace. They are especially popular with young adults, as people like them mostly use their phones to conduct purchases. But this form of payment is not exclusive to the younger generation though, as people who are well into their elderly years still find it quite useful.
Even the former standard for quick and easy payments for both online and offline payments, debit cards and credit cards, are quickly falling behind mediums like Alipay, Apple Pay, WeChat Pay, and others. Research has also shown that in the United States alone, mobile payment volume is going to rise by 80%, which will boost the number of in-store mobile payment users to 150 million.
Mobile payment’s growth in popularity in Asia
Due to the popularity of the mobile social network messaging platform WeChat, Asia has seen a growing trend of increased users of peer-to-peer payment platforms. This holds true for both those with and without bank accounts. Statistics also show that even without the per-to-peer transactions, WeChat Pay has more than doubled their market share for payments in China alone.
Aside from the P2P platforms, e-wallet payment has steadily grown more popular as well. More specifically the growth of this kind of technology in commerce between WeChat Pay and Alipay alone have skyrocketed from $81.6 billion worth of payments in 2012 to $3 trillion at the end of 2016.
How users are able to obtain CafeCoin
The Foundation expects that a user will have the ability to acquire CafeCoin through different ways. One of which is directly from the participating merchant, and another from another user or other third parties through peer-to-peer transactions. Users may also have access to potential market liquidity through other coin distribution platforms, and lastly from CafeCoin ATMs and other distribution centers.
In the future, The Foundation anticipates that CafeCoin might be obtained through purchasing pre-created QR or password cards and links. These should be made available at local retailers that already sell prepaid cards, and users will have the ability to purchase these codes in bulk.
CafeCoin’s benefits for its users
The Foundation designed CafeCoin with its users in mind. It has multiple benefits and advantages when choosing to make use of CafeCoin, and it has different perks when using it as a merchant, as well as a consumer. CafeCoin, as a cryptocurrency, already has the advantages of decentralized ledgers, and it also has impressive technology, architecture, and processes to back it up.
One of the main benefits consumers get when utilizing CafeCoin is immediate savings. It is anticipated that goods sold through CafeCoin transactions are given substantial price discounts in participating stores. This is especially high in the café industry, which CafeCoin plans on targeting first. Because of the substantial savings they will get from these merchants, consumers will be more likely to choose merchants that have chosen to integrate CafeCoin into their business, and this would further increase the utility of CafeCoin itself.
Consumers will also get the benefit of tailored marketing, or loyalty rewards. Marketing and promotions that cater to consumers’ preferences and spending habits will be implemented, and these may also be triggered at purchase when the consumer shares past purchase information. CafeCoin lends its flexibility at these events, as merchants will be able to easily change the pricing of a certain product or service by making use of the CafeCoin innovative application. This will generate loyal customers for the merchants, and the consumers themselves benefit greatly from the custom rewards merchants hand out.
The CafeCoin ecosystem will also drive liquidity and value creation. Consumers will gain substantial savings from dealing with CafeCoin affiliated establishments, said establishments will benefit from higher customer traffic due to the utility of CafeCoin, and other market participants will also enhance liquidity of the asset, which will also make CafeCoin valuation stay stable despite high-volume purchasing and selling.
CafeCoin is also going to be very easily convertible to traditional fiat money. The coin will also be easily converted to other cryptocurrency, and The Foundation will have the users be easily able to make use of other platforms to perform such conversions. In the intuitive mobile application, the user interface will immediately display current conversion rates for CafeCoin.
Consumers will also have the ability to spend and purchase CafeCoin at fractional levels, which is very useful for the everyday person. Lastly, and quite possibly most importantly, transactions made with CafeCoin are secure and private. Consumers will have full control over what information to give out, if any at all. They will mainly make use of their own mobile phones to transact through the mobile application, unlike debit and credit card transactions which requires you to give out sensitive details about you.
Benefits for merchants
The CafeCoin business model is also geared for merchants. They will be given substantial benefits when they choose to integrate CafeCoin into their business. One of the said advantages is they no longer have to pay credit card payment processing fees when using CafeCoin. Credit card companies on average charge merchants 1.5% to 2.5% in transaction fees. The Foundation anticipates that when trading with CafeCoin, processing fees will be significantly lower compared to credit card fees, and may even be virtually eliminated. Retailers in sectors that have higher per unit prices will see greater savings when using CafeCoin.
Another merchant benefit is the tailored consumer marketing at the point of sale. Merchants are given free rein to generate and implement promotional messages and discounts to customers that also leverage CafeCoin in order to drive their business. This is triggered at the moment a sale is made, and then the merchant and the customer are confirming the sale and also share information via the QR code generated by the CafeCoin App. The processing of consumers’ CafeCoins will be near instantaneous as well, and merchants need not wait for an uncertain and unspecified amount of time for third-party payment processors. With this, the transaction is fast tracked, and the merchants will receive their payments faster.
Just like with the consumers, merchants are also able to freely convert CafeCoins to other cryptocurrencies, and even fiat money. They can use available coin distribution platforms to do so, and they are easily accessible for users. Users are also able to purchase CafeCoin at any participating merchant, and this will allow for greater adoption by traditional businesses all over. Another benefit that merchants share with consumers is that they are able to accept and exchange CafeCoin at small units, so as to allow greater flexibility during transactions.
The CafeCoin foundation has done its utmost to incentivize their service for users, so that merchants and consumers alike will find it to their advantage when using CafeCoin. Although as of now other modes of digital payment are in the lead, CafeCoin might find make itself a contender in the space they share soon enough.
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