BTC another means to block chain technology without credit card payment
Startup BitPagos will block chain technology to the field of credit card, credit card is mainly the development of the low penetration of emerging markets such as Argentina and Latin America, these areas are experiencing severe devaluation of the currency, bitcoin as a more stable currency funds can be used to store and transfer the local people, as a result of the transaction not in will increase the transaction cost of the traditional settlement mechanism, but in the system, consumers need to pay the interest rates are low.
In today’s world to understand many uses bitcoin, such as online payment, long-distance remittances can even replace gold. But bitcoin for application field of credit card is not so much to start this field in New York TechCrunchDisrupt contest startups BitPagos.
The company is located in the Argentina capital of Buenos Aires, from the DraperAssociates, digital currency group (DCG) and other companies have started offering sponsorship money, bitcoin wallet, allows consumers to put money into bitcoin exchange, also can put bitcoin exchange to money, also can use bitcoin online payment of goods.
Bitcoin has been in Argentina and other parts of Latin America are popular in these areas are experiencing severe devaluation of the currency, bitcoin as a more stable currency can be used to store and transfer the funds to the local people.
However, the BitPagos team found another opportunity to use bitcoin. The team created a system allows users to do a credit card or cheque to online shopping in the block chain, but for the buyer and the seller is not related to the real bitcoin.
This is very important in emerging markets, because the credit card online shopping is the most simple way, not everyone has, other payment methods such as cash is very inefficient, also need to pay very high cancellation fee. For example, in Latin America, the popularity of credit cards was below 20%, millions of people are unbanked.
The world bank reports before the region’s “most” will have the money under the bed, if you want to apply for a credit card, for providing necessary data is difficult.
Ripio is BitPagos’s credit card system, allowing the unbanked and dollar credit card people online payment transactions.
The first customer for the service need only provide a small amount of personal information, including their identity card, social media accounts and address, while the company said the system will be in a day or more of their credit audit. (using BitPagos bitcoin wallet customers can immediately pass the audit, because they have a payment history.)
Once approved, there are many payment options for customers, including delayed payment — such as the end of the month to pay or payment.
BitPagos with a small amount of fees for profit of payment plans, but not because the transaction will increase the transaction cost in the traditional settlement mechanism, but in the system, the interest rate charged to consumers is lower.
Startups and businesses will share the benefits, but they will profit by other means.
In Latin America, the online payment accounts for only 2% of all trading activities, these solutions are trading on any Internet companies are very important, because it removes the main obstacles of income, also can increase revenue.
Ripio was originally used in Argentina, but before the company plans to expand its business into the whole Latin America first extended to Brazil. CEO SebastianSerrano is a serial entrepreneur, he once said he was working in Argentina, the Ministry of finance, emerging markets such as Africa and Asia (the popularity of these areas of bank account and credit card rate is still relatively low), very suitable for advancing the service.