One of the factors that has most affected the acceptance of cryptocurrencies as a way of payment is the complexity of its mechanism, access to wallet, and protocols for sending and receiving payments. Many times the difficulty that it entails for most people who do not know about cryptocurrencies means that their acceptance is still very restricted for common uses. However, this is being overcome thanks to initiatives and platforms that propose solutions to facilitate payments with cryptocurrencies. One of those solutions is provided by PumaPay.
PumaPay is defined as a blockchain free and open source payment protocol that presents as an innovation the architecture that they call PullPayment, which consists of intelligent contracts that reverse the mechanics of common cryptocurrency operations known up to now. For example, cryptocurrencies can generally only allow one type of transaction: send money from side A to side B, also known as ‘push’. With PullPayment the situation improves, by allowing an ‘attraction’ action in the blockchain, allowing side B to connect to the A-side address, by a PullContract and ‘extraction’ funds in the B-side account, all subject to prior approval of each transaction by side A.
The vision of PumaPay is to make flexible and expand the possibilities of payment mechanisms with cryptocurrencies. The PullPayment architecture allows a whole universe of payment mechanisms that are impossible or not viable when it is based only on one ‘insertion’ action: subscription fees, direct debit, payment for use and more, so thanks to this flexible and adaptable protocol we will can begin to see how companies and entrepeneurs can make their adaptation of payment mechanisms according to the characteristics of their respective businesses.
Cases of uses of the PumaPay protocol,
- Recurring payments of fixed amount.
- Payment for use.
- Recurrent fixed time payment.
- Single time or individual paymen.
- Shared payment.
- Restricted payment.
Are just an example to give an idea of the possibilities this allows. With PumaPay, merchants can also connect several billing solutions to allow the acceptance of cryptocurrencies directly; offer customers a comprehensive and flexible billing solution, addressing all billing practices; eliminate risks of fraud and various penalties, and even save the transaction costs of intermediaries ranging from 3% to 15%.
The protocol has a native utility token, the PumaPay – PMA – token, which is the facilitator of its unique functionality. It is the only way of transferring funds between the parties using the protocol and can be converted from any other cryptocurrency or fiduciary money. The protocol will be accepted by more and more merchants who will undoubtedly find a great ally in the normalization of their billing processes with cryptocurrencies as a ways of payment.