Case for Universal Payments Address — Part 1
Web3 will change the way we send & receive money!
Note: This article is first of the two part series. Part 1: Introduction to the concept; Part 2: How Networks like Cards (Visa, MA), Cryptos (Polygon, BitCoin, Solana), Real Time Payments (RTPs) should implement the concept to scale in a Web3 world
Do you know that when a Payer initiates a payment to a Payee, lot more work needs to be done on the Payer’s side of the equation than the Payee’s? If you break money movement processing into three discrete steps, the pre-processing step belongs to Payer side systems:
Payment Systems Inefficiency for an Open Loop payment solution
While most of the information is a routine workflow (e.g. Authentication, Authorization, etc.), knowing Payee information (highlighted above in red) ahead is a very critical part in the flow.
To elaborate the challenge here: in order for a Payer’s wallet or payment service application (e.g. Western Union, XOOM, PayPal, Google Pay, etc.) to move money to a Payee, they need to know two things about the Payee (receiver):
- Payee’s preferred way of getting paid (e.g. Bank, Card, Wallet, Crypto, etc.)
- Payee’s exact payment credentials (specific Account number/IBAN, Card #…
