In Typical $100 Purchase
$97.25
Goes to the merchant
The issuing bank gets $2.20 in the traditional payment system because they:
- Issue credit/debit cards to customers
- Take on credit risk (for credit cards)
- Handle fraud liability
- Process authorization requests
- Fund the transaction upfront
Direct $100 Purchase with XFT
$101.00
Goes to the merchant
No txn fees with XFT directly because:
- No credit/debit card issuance
- No credit is extended (transactions are pre-funded)
- No card issuance needed (wallets)
- Automated, inhouse KYC/AML (XFT is not liable for purchases made w/ distribution partners)
- Settlement is instant
- Transactions are final (no chargeback risk)
Benefits of XFT Coin Systems
- Avoid prefunding with 24/7 real-time payments: Move funds on banking holidays, fund shortfalls, working capital gaps, and other ad hoc transfers.
- Cross-border payments: Unlock working capital globally with cross-border payments and enable new business models, for example, machine-to-machine payments.
- Real-time visibility: View transactions and balances in real-time to ensure transparency and finality of payment.
- Advance payment type support: Use Delivery versus Payment (DvP), Payment versus Payment (PvP), and machine-to-machine payment types.
Payment Systems
- Costs
- Delayed settlement
- Chargebacks
- Fraud
- Privacy
- Financial Inclusion
- Cross Border Payments
- Centralization of Ledgers
- Complexity
Blockchain Payments
- Performance, Scalability & Latency
- Security, Custody & Privacy
- Regulatory Compliance
- Customer User Interface
- Adoption
- Token Volatility
Participants
- Customer
- Merchant (business)
- Issuer bank
- Card networks
- Payment processors (PSPs)
Process
- Authorization (Plaid)
- Clearing
- Final settlement