BitPagos CEO in addition to founder Sebastian Serrano late announced a novel characteristic for their bitcoin wallet, Ripio, at Techcrunch Disrupt New York 2016. In the past, BitPagos has decease known inwards the Bitcoin community past times enabling merchants inwards inflation-riddled countries, such every bit Serrano’s birthplace of Argentina, to convert credit carte du jour payments into bitcoins.
They’ve oftentimes been referred to every bit the contrary of BitPay, which is a Bitcoin payment processor that allows merchants to convert bitcoin payments into local currency inside i work concern solar daytime of the sale.
BitPagos’ latest projection is an attempt to convey a novel type of credit organisation to the unbanked inwards countries such every bit Argentina, where much of the population does non receive got the mightiness to store online. During his presentation, Serrano noted that online commerce accounts for entirely 2.2 pct of all the shopping taking house inwards Latin America.
How Does Ripio Work?
Ripio Credit allows its users to pay whatsoever bitcoin-accepting merchant inwards installments denominated inwards their local currency. After downloading the app, users are pose through an application procedure that involves handing over around identifying data such every bit a moving-picture demo of their government-issued ID in addition to a selfie. The data provided past times the user is reviewed to hit upward one's hear the creditworthiness of the applicant.
During his presentation at TechCrunch Disrupt, Serrano stated, “This is a really hard problem, exactly nosotros receive got been working on these issues for several years ‒ long earlier BitPagos.”
Serrano noted that almost of the BitPagos squad comes from other payment companies inwards the share such every bit Mercado Libre. BitPagos is essentially creating a novel reputation organisation to hit upward one's hear whether individuals who unremarkably are non banked (or offered credit) tin gain access to credit through their app.
Essentially, BitPagos is making bitcoin payments upfront for their users, spell the users are responsible for paying dorsum their buy via Bitcoin, a depository fiscal establishment work concern human relationship or local, physical cash payments.
Why Use Bitcoin?
After his presentation, Serrano was asked to explicate why Bitcoin was used at all. Serrano said:
“Bitcoin is, for the merchant, a much ameliorate system: It’s instantaneous [and] it has a much lower toll for processing. It too helps us construct a [merchant] network that volition give a lot to a greater extent than value to the user [from the start].”
As an representative of the efficiencies offered past times Bitcoin, Serrano noted that Avalancha, a BitPagos ecommerce partner, offers a 10 pct discount for payments made alongside bitcoin. Serrano explained that the merchant is willing to give that discount because it is a “better network.”
Serrano continued:
“If [a merchant] processes alongside a credit carte du jour society inwards Argentina, he volition larn paid a calendar month afterwards inwards a Earth that has twenty pct inflation.”
How Will BitPagos Fight Fraud?
Serano too was asked how BitPagos’ novel app volition move able to hit out fraud. Serrano noted that fraud is something BitPagos has been battling against for a long time, in addition to he believes it is non going to move a major upshot going forrad ‒ mainly due to the company’s sense inwards the past.
“We know a lot of the [traits] that a fraud user volition have,” he said.
Serrano too mentioned that BitPagos’ mightiness to hit upward one's hear the creditworthiness of a item user volition improve over fourth dimension every bit the user’s activeness is monitored.
Image via Ripio
The ship service BitPagos to Bring Credit to the Unbanked via Bitcoin appeared get-go on Bitcoin Magazine.
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