CAFECOIN’S PAYMENT PROCESS, MAKING ADVANTAGES FOR EVERYONE
One of the things that groups intending to release a new cryptocurrency need to ensure is that they create sufficient benefits for the users. No matter how effective and efficient your cryptocoin will be, if it lacks incentives for the users, it won’t get that much adoption. Let’s take Bitcoin for example. When it was initially released back in 2009, it wasn’t an instant hit. As most people can attest, it started making a buzz back around 2012 when the adoption rate picked up. When stories started circulating about overnight millionaires, that’s when popularity hit the roof. But that process had the advantages of a viral buzz.
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Despite the fact that Bitcoin has lost quite a lot of its value in recent years, a lot of experts still agree that cryptocurrency in general is still worth investing in. That is because of the inherent advantages people get form simply making use of it. Cryptocurrencies are decentralized ledgers, meaning they rely on no singular authority to validate or control their finances. This creates nigh unparalleled security, as the users of the coin are going to be the ones who validate transactions. Exchanges will need the general consensus of the users in a network for a transaction to be settled.
This enhances the security of cryptos to the point that it’s more trouble than it’s worth to even try and get into a network without permission. Because of the massive utility this affords users, Bitcoin gained a lot of popularity, and adoption shot up. The mistakes that a lot of new cryptocoins make is that they simply follow in the footsteps of successful, already existing coins in a bid for success. But people won’t go for your cryptocurrency if another, more established one can offer the same thing. The Foundation ensured that they give their users certain advantages that could only be found in CafeCoin.
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THE TRANSACTION PROCESS
Before we go into the advantages that CafeCoin gives to both merchants and consumers, we’ll take a look at how transactions go on the CafeCoin network. Take for example, you, a customer, want to purchase a cup of coffee. You already have the CafeCoin mobile app, and more than the required amount of CafeCoin to pay for the cup. You open up the CafeCoin app and then the merchant also opens up their application on their end. The seller, in this case the merchant, has the ability to either manually input the costs and the description of the product into the CafeCoin application, or have the app determine the right amount through its integration with the pre-existing point of sale system.
The merchant’s CafeCoin app will then generate a QR code that contains all of the details regarding the sale, as well as the public key of their digital wallet. This is where the buyer then comes in, in this case, you. You can scan the QR code and then your CafeCoin app will reflect the transaction being proposed on your screen. You now have the choice to accept the transaction, or reject it. The Foundation assures all of its users that no CafeCoin will be exchanged until the consumer has agreed to settle the transaction.
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Once the price has been agreed upon by both parties, the transaction will be sent for validation using the CafeCoin blockchain. The confirmation screen will then appear once the CafeCoin app executes the transaction between the buyer and seller on the network, and the app will show visual feedback to both parties once the transaction has been completed. This process can also apply to any two users of CafeCoin.
CONSUMER BENEFITS
The CafeCoin foundation expects that their decentralized payment system will be an extreme leap compared to the trend of mobile payment platforms. The previous systems will eventually need to depend on either the traditional financial institutions, or credit card corporation like Visa or MasterCard in order to complete transactions. CafeCoin will be the first of its kind and will revolutionize the payment processing industry by making use of technology in order to address the current deficiencies in the market. For consumers, here are just some of the benefits users can expect when they subscribe to the coin:
Immediate savings – The Foundation expects that the products that are going to be sold through the CafeCoin system will get substantial discounts with the merchants who partner with CafeCoin. The available discounts are anticipated to be especially high among the strategic CafeCoin retail partners that are in the café industry. For example, if one establishment sells their coffee for $2.50, when using the CafeCoin process, the price will drop to $1. This is just an example, and the precise discounts will depend on the merchant’s discretion.
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Loyalty rewards – Consumers will benefit from marketing and promotions that cater to their specific preferences and spending trends. These can be triggered at the moment of purchase, or when the consumer opts to share transactional information to the merchant.
Robust transactional ecosystem – The Foundation anticipates that the CafeCoin ecosystem will drive liquidity and value creation due to the users who demand the substantial savings of CafeCoin, the merchants who benefit from the increased sales, and then the market participants who also enhance liquidity.
Easily convertible to traditional currency – Users of CafeCoin will have the ability to easily trade their CafeCoin for fiat currency on coin exchanges and liquidity platforms.
Secure transactions – Consumers will mostly use their own mobile device and thy will not be sharing any personal information like one would usually do when transacting with credit cards. This feature eliminates one of the traditional sources of identity theft.
Fractional transactions – Consumers have the ability to spend and purchase using CafeCoin in fractional units, which enhances the overall utility the coin gives.
Read More: 4 Reasons Why Cryptocurrency Is Better Than Fiat Money
MERCHANT BENEFITS
The decentralized model that CafeCoin makes use of, the non-inclusion of third-party payment processors that they allow, and the direct information exchange with merchants give them these certain benefits.
Instant savings – The merchant can also generate savings from CafeCoin. Credit card companies usually charge 1.5% to 2.5% in in transaction fees. When making use of CafeCoin, merchants will pay substantially less, and can even be virtually eliminated. Retailers that charge more will see even greater savings when making use of CafeCoin.
Tailored customer marketing – Merchants have the ability to create specific marketing messages, price discounts, or promotions that boost their business. These are triggered at the point of sale, when the merchant and consumer share information regarding the purchase.
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Instant settlement – Unlike other traditional mobile payments platforms, the payment will be instantly settled, and the currency will immediately reflect on the merchant’s wallet. Merchants will no longer have to wait several days, or even weeks, before the amount is credited to their account.
More users expand the business – Similar to prepaid cards, consumers are able to purchase CafeCoin at participating merchants. This will enable greater adoption by traditional businesses all over the world.
Fractional transactions – Just like consumers, merchants are also able to transact at fractional rates, which makes it easier for them to get the exact amount of what a certain product or service is actually worth.
