Digital payment and rewards management system TravelCash is launching a blockchain-based payment processing solution in an effort to provide both customers and merchants a more inexpensive digital alternative to the credit card industry.
According to a press release published December 5, TravelCash is currently working on the development of both a proprietary digital currency and a mobile payment and rewards system through the Stellar platform, an open-source, decentralized protocol for digital currency to fiat currency transfers, touted to be capable of facilitating 1,000 to 1,500 transaction in a single second.
As it stands, the credit card industry charges between 3.5 to 4 percent processing and transaction fees to merchants, more so for some merchants facilitating high volume of chargebacks. Not including additional monthly and per-item fees, a 2 percent processing and transaction fee can drastically change a business’ cash flow, particularly for brick-and-mortar retailers currently faced with tighter margins.
As TravelCash chief vision officer Will Gozzard explained in the release:
“With our fees at just 1 percent, we save merchants 50 percent to 70 percent over credit cards and because the app lets merchants take payments immediately, no additional equipment is needed. The process is designed to be seamless and the savings are substantial.”
In addition, TravelCash is also introducing a mobile app that would serve as a digital wallet for consumers, in an effort to streamline the facilitation of purchases while minimizing the potential risk of fraud. Ultimately, the company aims to provide customers a platform in which TravelCash QR codes can be used for purchasing goods and services, collecting merchant rewards such as grocery store gas points or airline miles, as well as saving receipts, all through the company’s recoverable wallet which are securely stored on the Cloud.
As Gozzard added:
“In fact, we envision TravelCash being accepted in every aspect of life: from online travel booking sites, to grocery stores, from hotels to restaurants and at gas pumps – even on sharing economy platforms such as Uber and Airbnb. With our app, consumers can simply pay on the go with their phones and not have to worry about any of the risks of carrying cash or credit cards.”