💵 CoinPays: Fiat Complexity and Crypto Bridging Solutions

Fiat Complexity

In interfacing with fiat payment systems, there are numerous challenges that are considered routine in the business world:

• The transaction process involves many intermediaries, each with their own costs and fees.

• Cross-border transactions are particularly complex.

• Trusting each intermediary is critical to the completion of transactions, and nearly every function of the industry aims to assess, establish, and maintain trust.

• The complexity of trust functions necessitates complex security and privacy procedures.

• Processes like reconciliation, collections, clearing, and dispute resolution involve numerous steps and are time-consuming.

These challenges can cause transaction fees to reach 30-50% of the transaction value in places like Southeast Asia. Multi-channel strategies are used to avoid such fees. Overseas workers sending money back home are particularly negatively affected by this situation. On the other hand, a multinational retailer with retail stores in Sydney, Hong Kong, Dubai, Bangkok, Singapore, and Kuala Lumpur works with different payment processing agencies in each country. Each processor's service standards, clearing times, rates, and additional fees vary, requiring specialized departments for reconciliation according to the country.

Crypto Bridging

The invention of Bitcoin and the development of other cryptocurrencies were aimed at solving the aforementioned issues. Through the fundamental principles of decentralized blockchain ledgers that sit at the heart of cryptocurrency technology, incredible efficiencies and simplifications have been achieved, and as the industry grows, more are emerging. However, despite the periodic advancements and recognitions of many cryptocurrencies, the current role of cryptocurrencies in payments remains minor and is growing very slowly. This could be argued to be due to the great inertia of the $80 trillion fiat payment ecosystem. Resistance to change by organizations profiting from the current system is another likely reason. But a more fundamental reason is the pivotal role of sovereign currencies in the geopolitical arena. A significant barrier to the advancement of cryptocurrencies for payments is the common assumption that the purpose of cryptocurrencies is to completely eliminate fiat currencies.

CoinPays has chosen to build an interface rather than abandoning the fiat world—creating a bridge between fiat and crypto—applying our extensive experience in fiat payment transactions and our early foray into blockchain technology. CoinPays addresses this challenge by dividing it into three broad categories:

1. Payment functions for commercial applications

2. Support functions for commercial applications

3. Performance issues related to the cryptocurrency itself

These categories form the foundation of CoinPays' efforts to integrate cryptocurrencies into the global payment macroeconomy, thus providing speed, convenience, security, and safety for users, while offering efficiency and reliability for merchants.