Forget Visa — We Don’t Need Them Anyway!

The potential future of payment processing and crypto currency

As my personal disclosure; this article was not written for personal gain and I’m not here to promote any coin or service. Since my primary intention is to inspire the crypto community, I intend to address the next step for crypto currency and blockchain technology. Most importantly, how do we integrate crypto currency into our everyday world?

Although I first wrote this article a few months ago, there are now even more reasons to bypass traditional credit card systems and develop a functional “crypto payment” system.

Just imagine…

“After a day of errands, one lazy afternoon, my wife and I decide to take our eight-year-old son to a local coffee shop where we can get something to eat. Moments later, we’re sitting at our favorite table, and with the help of a very friendly server, we order a delicious lunch and enjoy every bite! Then, feeling the need to spoil our son, we finish our meal with a decadent brownie and scrumptious muffin. When we’re done eating every last crumb, the server brings us the check, and upon realizing the actual cost of the over-priced pastries, I try to hide my shock.

Nonetheless, upon checkout, I pull out a modest black and grey card from my wallet, and after adding a generous tip for the delightful server, I insert the card into the point of sale device. Within seconds, a notification on my phone asks me to verify the transaction. But, thanks to GPS, my phone knows that I’m at the same location as my credit card, and since the total cost is lower than my pre-set maximum, my phone automatically verifies for me.

Happily, we end our lovely meal with an effortless transaction — all thanks to crypto payment!”

Now, in the fictional story above, there was no need for Visa, Mastercard, American Express, etc… In fact, there was no need for a bank to complete the transaction and pay the establishment.

Instead, everything was done through “crypto payment.” Thanks to the retailer who integrated a new Point of Sale service into their payment system, and, of course, my commitment to crypto currency.

I didn’t have to think about current exchange rates or the Lightning Network transaction happening in the background, and due to my preferred security settings, the transaction was very secure!

Additionally, the merchant was happy with my “crypto payment” for 4 good reasons:

1. Instead of having to jump through absurd hoops to attain a credit card merchant/gateway account, all merchants/sellers are automatically approved for “crypto payment”!
2. The merchant doesn’t have to worry about fraud or chargebacks with “crypto payments.”
3. The merchant can choose to receive the final payment in their preferred currency — with no waiting period!

Of course, the idea of “crypto payment” sounds amazing for all involved! However, don’t be mistaken, “crypto payment” is not some far-off fairytale. “Crypto payment” is the inevitable future!

Providing security and efficiency for both the merchant and customer, there are many ways for this new system to work. With ease of use for both parties, and easy-to-set preferred options, it’s truly a win-win for customers and merchants alike.

Reinventing the Wheel

No one can deny that rather than reinventing the wheel, it would be easier to integrate crypto currency into the current credit card system — and there have even been a few successes, such as Shift and Bitpay. However, the big problem with this integrative approach is that “little logo” on all credit and debit cards! By using crypto currency with the current payment system, your credit/debit card can be denied, canceled or revoked at any time without notice.

Unfortunately, the current credit card industry wants nothing to do with crypto currency, and, in fact, due to the hostile opinions of many banks and credit card agencies, crypto currency is a Dirty Word!

The Dirty Word!

But, why can’t we integrate crypto currency with Visa/Mastercard issued cards?

Well simple, the banking industry (the foundation of credit cards) feels extremely threatened — and rightfully so!

With “Diner’s Club” leading the pack, the first (modern-day) credit cards were issued in the 1950’s, and at this time, the concept was revolutionary! In the beginning, transactions were recorded by hand and completed manually at the end of the sales day. There was no instant authorization or magnetic strips, and obviously no chips. Needless to say, credit card companies have come a long way since then. Due to an expanded infrastructure, credit cards are accepted by virtually every merchant and retailer worldwide, and, as a result, credit cards are the most common method of payment (even making cash obsolete).

Instead of embracing the future, banks are complacent in their current role, and why wouldn’t they be? After all, the banking industry has full control of the world’s financial system and they also have the power to make money out of thin air — and this cycle keeps those on top, permanently on top.

Nevertheless, the banking industry is broken beyond repair, and, as a result, crypto currency threatens the entire system.

Therefore, not only do credit card companies not want us (the crypto community), we should not want them — at least not in their current condition.

Building a New Crypto Payment System

In case, I have not made my point clear, we need to remove the traditional banking industry from the equation. Instead of trying to integrate with the current broken system, we need to build an entirely new merchant system that is based on crypto currency; thereby supporting both retailers and customers alike. Furthermore, if credit card companies want to integrate with the “crypto payment system,” they can do so. However, this integration must be based on mutually agreed terms that are beneficial to all parties.

Let’s be clear, “Crypto Payment” must be a fully independent system!

However, due to several key factors, implementation may sound daunting at first.

For instance:

1. A point of sale merchant system has to be built. Preferably free and open-source; this way new crypto payment systems and additional blockchain assets can be easily integrated at any time. Just like traditional gateways, there will be many options from which to choose.
2. The need to modify the merchant’s backend software. To enable a new payment system, retailers around the world need to modify their backend software. I have personally developed payment gateway integration so I know first-hand how time consuming it can be. However, it’s not only possible, it’s ultimately effective!
3. Government regulations would need to be set. As of now, crypto currency is being classified as different “things” in different countries. Before we can implement a global crypto payment system, we need a definitive classification.
4. Secure mobile applications. Since we live in a connected world, we need to be able to use mobile devices for ease of use, as well as security settings and other preferences.
5. Some level of (initial) centralization. Although there are a vast number of ways to setup a crypto Point of sale/merchant system, the initial process will likely require some form of centralization.
6. Integrating several popular crypto currencies. As the primary focus, the most popular and proven blockchains should be integrated first — with the ability to add more blockchains in the future.
7. Navigating the volatile pricing of crypto currency. I personally think this will fix itself once crypto currency is actively used in a real world economy.
8. The ability to be flexible and change with the times. Crypto currency is still in its infancy stages — so what it looks like today, may not be what it looks like tomorrow. We need to embrace the future — not fear it!
9. The inevitable push back of the banking industry. Since we will likely experience increasing resistance from the current banking system, we need to be strong in our approach and grounded in development, and, no doubt, this includes a progressive legal team on our side.

Say “No” to Debt!

Maybe you’re thinking, “What about all the people who depend on credit cards and the ability to buy on credit?”

Once upon a time, we were led to believe that credit cards offered freedom, and, in fact, we could buy a better lifestyle on credit! But, now, decades after the credit card era first began, millions of people are burdened by ever-increasing debt. Once enslaved by debt, it’s common to work two jobs in order to pay off mounting credit card bills, and, as a result, we now experience a new type of modern day slavery.

Sadly, it’s clear to see that credit cards do not provide freedom, and, in fact, using credit cards is like making a deal with the devil!

So, maybe it’s better to “ditch the devil” while we still can, and, instead of relying on credit, we develop new systems that support economic sustainably worldwide. Of course, there’s no telling what possibilities lie ahead, but, keep in mind that the full potential of crypto currency and blockchain technology are yet to be fully understood and implemented.

Don’t be a Hoarder!

One of the biggest problems with crypto currency is that most crypto community members are not actually using their coins as currency. Instead, they have been hoarding them like precious gold. However, I can tell you that crypto currency will only go up in value, and retain value, if it’s being used as intended — as currency.

No doubt, an economy grows as it’s utilized!

Let’s be clear, I’m not saying that you should spend all your crypto. However, if you spend some of your crypto on a regular basis, you will help distribution, and, as a result, the price of crypto currency will stabilize, and even increase, accordingly!

From this perspective, spending a portion of your crypto is a form of investment!

Of course, no one person can change the system, but, if we work together, as a collaborative community, we have the power and resources to create a New Paradigm for economic sustainability — and, thanks to crypto currency and blockchain technology, the potentials are limitless!

Additional disclaimer: The above are my personal thoughts about crypto currency at its current state. This is not advice nor should it be considered your truth. Do your own research — learn, grow and help others do the same. Also, I do not condone the purchase of overpriced pastries — no matter how delicious they may be!

Thank you for reading!

If you have something positive, informational, or intelligent to say, let’s openly talk! But, please no anger or negativity since it does not help anyone. I would also like to add that this article is focusing on the use of blockchain technology as a currency/payment platform, but this is clearly not the only use of blockchain (as demonstrated through dApps). We also can’t forget about alternative blockchain technologies such as IOTA/Tangle.

Additionally, there are some blockchain projects attempting to move away from the traditional point of sale credit transaction system, but, instead of listing them here, I invite you, the reader, to share your knowledge and information in this regard.