pingNpay will make its blockchain powered retail micropayments network operational next year.
The London-based startup is moving out of stealth mode and initially launching in the UK, using a digital coin backed by the pound.
The network will use stablecoins in each country of operation, denominated and anchored in the local currency, 100% backed by liquid fiat assets with a published proof-of-reserve to meet regulatory expectations.
Consumers and merchants will see low value payments (below $20 per transaction) and balances in their local currency.
pingNpay caps fees at a sub 1% ad valorem (only) fee distributed amongst the software provider of wallets, wallet providers who issue the wallets to users and provide customer support including custody of wallets/funds and pingNpay as the network provider who facilitates the operation of the underlying transaction network.
Fees are paid in real-time at point of transaction. Fees are borne by the payer unless consumer-to-business (retail, utilities), in which case the receiver (retailer) pays.
pingNpay, which allows consumers to pay for services and products offline (a coffee or food on the street) and online (digital subscriptions, for example), has been founded by payment industry veterans Richard Bell and Jeremy Light.
They both cut their teeth scaling blockchain payments at US venture Ripple. The former has also worked for Visa, Santander and Vodafone, while the latter led Accenture’s payment consulting business in Europe.
Bell says: “The unveiling of pingNpay comes at an important time for the subscription and digital services economy, which has grown substantially during the Covid-19 pandemic.”
“In a world where micropayments are becoming common place, retailers are still finding monetising digital grazing a challenge, and many potential services they could offer have yet to see the light of day.”
He concludes: “No-one has yet to crack the sub-$20 digital payment market. The major card networks can process tens of thousands of payments per second, but even so the cheapest debit card payments cost retailers at least 20p per payment, which represents 20% of a £1 payment.”
“pingNpay solves this problem and will unleash a new wave of e-commerce innovation for consumers and the next stage of the internet’s evolution, Web 3.0.”