The advent of the internet laid the foundation for eCommerce, but it currently utilises the centralised financial system for payments. With the proliferation in the use cases of crypto and DeFi, it won’t be wrong to expect that crypto projects will tap into eCommerce to create a new shopping model that benefits all stakeholders.
For instance, blockchain can integrate eCommerce applications seamlessly with DeFi mechanisms that negate the high interest charged by legacy financial services. Doing this can also allow users to benefit from more personalisation since they can be actively involved in governance decisions that affect the quality of products and services available on the network.
@Pay, a decentralised global platform creating payment solutions for shoppers, merchants, and marketplaces, aims to make such an eCommerce network.
@Pay, Shop, Save and Get Rewards
@Pay is a first-of-its-kind DeFi platform that integrates blockchain and smart contract technology with a Buy Now Pay Later mechanism. Through BNPL, @Pay users can make repayments in four tranches over three months without being charged interest or late fees. This will be applicable across online and in-store purchases of products from the platform’s list of onboarded merchants.
When users complete their repayments within the stipulated time, they are eligible to receive @Pay governance tokens, the native token of the @Pay platform, programmed to perform several critical utilities for users. Users can use @Pay tokens to increase their credit limit, purchase products and services from @Pay merchants in the marketplace, and vote on critical decisions that can shape the platform’s future.
Upon registering on the platform, approved users are immediately provided with a credit line of $250 that they can increase later with the @Pay governance token. For example, if a user earns 20 @Pay tokens, they can exceed their credit limit to $1200 worth of purchases. This business model, based on the concept of BNPL, enables the platform to act as a fiat-to-crypto bridge between merchants and users.
Additionally, the platform has developed a staking mechanism where users can stake approved cryptocurrencies like stablecoins USDT and USDC. Stakers will earn a variable yield. Stable coin stakers capture a yield based on the revenues generated over the staking period.
@Pay has created a synergistic mechanism to ensure that users are rewarded for participating in the network’s governance and staking. This increases the ability for users to upgrade their transaction limits over time and gain rewards for responsible financial behaviour while purchasing products. The same ethos is also followed for onboarding merchants who want to tap into the benefits provided by DeFi while using blockchain to develop one-on-one relationships with their customers.
With increasing competition among businesses in all industries, every innovation that creates more value to the end-user becomes a competitive advantage. By incorporating a DeFi layer for eCommerce via BNPL, @Pay stands to redefine the shopping experience by rewarding good financial behaviour. This makes the business sustainable and resilient, owing to the user’s increased propensity to contribute to the network’s long-term well-being.