I’ve previously written about cryptocurrency payments – see Eligma – and it’s great to see more and more players coming into this space to support retailers.
For me, the more different payment types accepted at wherever people shop, the better. One of the things that really irks me are retailers who only take cash, which is still a regular occurrence in Australia in 2018. Who even carries cash these days? With a push towards a cashless society, the consumer wants options, or they will go elsewhere.
Enter Paytomat. This is a platform that retailers can connect to and start accepting up to 16 different cryptocurrencies, on top of all the established payment types. Oh, the convenience. Best thing for the retailer? There are no fees. Instead, Paytomat takes a 2% exchange rate margin from any paid cryptocurrency.
The customer journey is pretty simple:
- Advise retailer which of the supported cryptocurrencies they wish to pay with
- Retailer processes the transaction and the Paytomat Core system calculates the real time exchange rate (USD to BTC for instance)
- Customer is presented with a QR code for scanning
- Transaction is validated on the back-end and crypto funds are loaded into the retailer’s wallet
The retailer will also have the option to convert funds into their country’s fiat if they choose to, however fees would apply. Additionally, it’s not clear from the whitepaper whether it’s possible to set up this conversion in real time, or if it happens at the end of each day. Being the latter, the retailer runs the risk of fluctuations.
A recent news article stated that:
“Paytomat, the decentralized payment system for cryptocurrency, and the American Nightlife Association (ANA) uniting 30,000 merchants, announce their strategic partnership aimed at facilitating cryptocurrency adoption in the bar and nightclub industry in the U.S. As part of this agreement, ANA will collaborate to launch Paytomat operations in the U.S., generate new revenue streams, build a strong network of multi-venue clients, as well as attracting American investors. ANA will also assist in establishing a network of partners (banks, exchanges, gateways and processing companies) to create a legal scheme for each of the states to introduce payment to merchants on the fiat settlement account in exchange for payment received in the cryptocurrency.”
A key feature that Paytomat plans to introduce in the US market is its blockchain-based loyalty program, supported by their own PTM cryptotoken. The goal will be to incentivise retailers to accept payments in crypto and customers to pay with crypto. It’s unclear whether retailers and customers will earn the PTM cryptotoken as a reward for paying with crypto, but we sure hope so – otherwise there won’t be much point to it.
Let’s see where this goes.
Max Savransky is Loyalty Director of Loyalty & Reward Co, a leading loyalty consulting firm based in Sydney. He has 10 years’ experience within the loyalty industry including roles at Mastercard Loyalty (Pinpoint), Silverneedle (Next & Sage Hotels) and Pureprofile. As Loyalty & CRM Manager at HOYTS, he launched the highly successful partnership with Qantas Frequent Flyer, including a world-first Qantas Points in-store redemption proposition. He is an active cryptocurrency trader.
Max regularly contributes to www.blockchainloyalty.io, a global resource centre for everything blockchain loyalty.