Plutus: Bitcoin's ‘Apple Pay’ App with Ethereum Smart Contracts & Rebates
Making Bitcoin payments more accessible to consumers all over the world will help put digital currency on the radar as a formidable financial solution. Now, Plutus is bringing more convenience to the Bitcoin ecosystem by letting users pay with digital currency wherever contactless (NFC) payments are accepted similar to how popular mobile payment apps such as Apple Pay and Android Pay operate today. What’s more is that it uses Ethereum smart contracts to complete transactions.
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Plutus: Mainstream Bitcoin Payments
Even though popular digital currency Bitcoin has been getting a lot of attention from business owners over the past few years, consumers have not started using this alternative payment method en masse just yet. Innovative solutions, such as the Plutus platform, hold all of the cards to change that scenario in the future, though.
Contactless payments are becoming a significant trend, and modern mobile solutions such as Apple Pay offer consumers an option to pay with their device, rather than pulling out a plastic card. Convenience trumps everything else in our society today, and contactless payments are a very convenient way of completing transactions without much friction.
It was only a matter of time until Bitcoin companies started exploring the potential of NFC payments, as there is no reason not to use the existing financial infrastructure in the world today. Even though accepting Bitcoin payments requires no additional infrastructure to be set up by merchants, they are struggling to grasp the concept of digital currency payments. In the end, most retailers decide to convert incoming bitcoins to fiat anyway, as they need to pay their staff and suppliers.
Plutus is offering something slightly different from accepting Bitcoin payments in a traditional way, as the merchant will receive transactions in fiat currency. At the same time, the platform will let users spend Bitcoin to pay for goods and services, and this money is converted to fiat currency on the fly through the company’s PlutusDEX exchange platform.
“Anywhere you find an NFC-enabled terminal, you will be able to pay using bitcoin,” Plutus CEO Danial Daychopan, told IBTimes. “We are primarily targeting contactless payments for convenient daily purchases.”
Our main innovation is that we are able to do this without running or connecting to a centralized exchange ourselves, as our platform is fueled by peer-to-peer trading and decentralized smart contracts running on the Ethereum blockchain.
One thing that could hold back a solution such as Plutus is the need for transaction confirmations when making Bitcoin payments. However, the company has circumvented this potential issue by making requiring Bitcoin deposits to be made before the point of sale. Any deposit made by the mobile application – set to launch later this year – will be converted to a virtual debit card that can be used for contactless payments.
In the end, platforms such as Plutus will allow users to spend Bitcoin for everyday needs. Right now, the plan is to use Bitcoin for public transportation, and any other retailer or service where contactless payments are accepted. Grocery shopping, paying for food, and even buying cinema tickets, are all within the realm of possibilities.
Ethereum Smart Contracts & Plutons Rewards
The convenience side of things is just one of the aspects that make Plutus so appealing to Bitcoin users. Under the hood, the platform makes use of Ethereum smart contracts, removing the need for Plutus to hold customer funds. Furthermore, Ethereum smart contracts allow for automated exchange from Bitcoin to fiat currency using the PlutusDEX decentralized network, while recording all transactions in a transparent fashion.
But there is another reason Ethereum is being used as an integral part of the Plutus solution. Whenever a user makes a Bitcoin conversion, they will be a awarded with tokens, called Plutons. Similar to how cashback services work when using debit cards, these Plutons can be used towards a next top-up of the user’s Bitcoin balance.
During the early stages, the rebate rate will sit at 3% per transaction although that number will decline over time as Plutus becomes more attractive. The minimum rebate percentage will be 1% at all times, and all Plutons will be issued on the Ethereum blockchain to provide independent token smart contracts.
For those users who are not looking to spend their Plutons for their purchases, an option will be implemented to send tokens to a friend. In the end, such a solution can lead to charitable donations through the Plutus app, as Pluton tokens can be sent to anyone in the world in a matter of seconds.
Future use cases for Ethereum smart contracts through Plutus include setting up an escrow system between customer and merchant when it comes to shipping goods. Funds could be held in escrow until the order has been shipped, and tracking numbers could be used as a verification tool.
What are your thoughts on the Plutus application and ecosystem? Is the choice for Ethereum smart contracts a good idea? Let us know in the comments below!
Source: IB Times
Images courtesy of Plutus, Shutterstock, Ethereum