Cardano and Other Platforms “Remain on the Table” for PumaPay

Cardano and Other Platforms “Remain on the Table” for PumaPay

The PumaPay team today announced the release of its iOS wallet onto the App Store today. The app will hold PMA tokens but users will need to wait until 2019 before it serves as the front-end of a fully integrated payment network. 

“Blockchain technology alone is not enough to challenge established payment processors such as Visa and Paypal,” stated one PumaPay investor. “You need to create networks, you need partnerships, you need merchant buy-in, and you need a radically improved proposition from the solutions that exist today to mount a serious challenge to the existing industry.”

The team behind the PumaPay project therefore set out to raise in excess of $100m – which it did without a public token sale, going exclusively down the road of securing a string of private investments – in a bid to give the internet what it has so far been desperately lacking: a cutting-edge P2P payment technology that is simple, fluid, flexible and which bypasses all intermediaries. 

Bitcoin largely set the scene for these new possibilities but, according to some analysts, remains limited in its use cases, not accommodating, for example, payment mechanisms such as direct debits.

Push vs. Pull Payments

Direct Debits are an example of something referred to in the industry as a pull payment. A pull payment is simply where an arrangement is made for an authorised withdrawal from your account – usually because you have signed a piece of paper instructing your bank to permit a third-party to lift a variable amount from your account. It is one of a number of payment scenarios that most blockchain-based payment processor start-ups are not seeking to address because it implies a large network of strategic and commercial partnerships to allow it to happen. 

It is for this reason that the project team behind PumaPay believes it is now setting itself apart in the wider race to become the de-facto standard for P2P blockchain-secured online payments. 

The team is also looking to implement a series of SDK tools that will allow third party developers to build a host of flexible payment solutions. One example cited in the project’s white-paper is restricted payments – where a child, for example, can present his or her own smart phone to make payment for lunch at the school canteen. In this scenario, the request for payment is relayed to mum or dad at home whose own smart phone will then action or deny the payment upon a set of conditions which the parents themselves define – no lunch for Abigail if she’s only buying chips as opposed to today’s vegan special. 

The so-called PMA economy is in its infancy, a full product roll-out is not expected at least until 2019 as per the white-paper roadmap. Even the platform’s base has not yet been definitively decided upon – Stellar may seem like the natural option for some, but Cardano is also thought to be on the list of candidates. “All of these options currently remain on the table,” PumaPay tell us. The PMA token will remain, for the time being, a ERC-20 token. 

But the comprehensive approach being taken to putting forward the internet’s long-overdue, first fully-specked payments solution technology likely now means that traditional payment processors will finally see the blockchain no longer as a conceptual threat, but one which is taking real form.