The Green Sheet Online Edition
August 10, 2015 • Issue 15:08:01
Global payments, localized currencies
Snapcard Inc. is a registered money service business headquartered in San Francisco, with additional offices in Australia and Canada. Established in 2013, the company is focused on improving efficiencies and eliminating friction in the acceptance, processing and use of digital currencies.
An estimated 14 million people use digital currencies worldwide, and adoption is increasing. Snapcard's suite of products and services is designed to simplify and expedite digital currency acceptance. Snapcard's digital wallet supports bitcoin, litecoin, dogecoin and other popular alternative currencies. The company offers ongoing education and online support to its partners in an effort to demystify emerging payment schemes.
"[We] understand that with a new payment method like bitcoin, it's important to stay involved in the educational process," said Snapcard Chief Executive Officer Michael Dunworth.
Easy integration, user experience
Merchants can use Snapcard's digital toolkit and Merchant API to integrate digital payments into their businesses. The automated process creates a merchant account linked to a settlement bank. A merchant dashboard includes analytics that can be used to monitor transactions and payments. The secure web portal runs over an encrypted secure sockets layer.
The company noted that the Snapcard user experience is similar to that of online banking, and Snapcard wallet users can acquire bitcoin without bitcoin mining. The closed-loop system requires a user name, password and TouchID technology to securely authenticate the user and complete a transaction, Snapcard added.
Partnerships, white label solutions
Snapcard offers a Brand Ambassador Program and white-label options to ISOs and acquirers. The company noted that it helps channel partners educate merchants on digital currency acceptance, and a growing number of ISOs, payment gateways and value-added service providers have integrated Snapcard's technology platform into their products and services.
One such company is Singapore-based Alpha Payments Cloud, which has leveraged Snapcard functionality to enable clients to accept digital currencies. Snapcard's simplified pricing eliminates monthly charges and setup fees. Payees receive funds instantly and transparently, paying no additional transaction fees, Snapcard said.
Digital gifting platforms use Snapcard in marketing, loyalty and employee incentive programs. Recipients can select rewards in their native countries, using their own local currencies. Companies that have partnered with Snapcard to incorporate digital currencies into their gift, rewards and loyalty programs include Ifeelgoods, a digital gifting platform with offices in Palo Alto, Calif. and Paris; Seattle-based Tango Card Inc.; and International Payout Systems Inc., which has offices in Fort Lauderdale, Fla., London and Panama City, Panama.
Cross-border payments simplified
The Snapcard MassPay API enables users to send cross-border payments to a phone number or email address anywhere in the world. Recipients can withdraw the funds in bitcoin or in their local fiat currencies for a small fee.
"MassPay enables big enterprises operating at a global level to pay thousands of users or employees in their local currencies using bitcoin as a rail," said Jack Jia, Snapcard Business Development Manager. "Cross-border transfers can be completed instantly around the world, bypassing the banking system and solving complex accounting issues."
Jia noted that the service can be automated, enabling users to schedule one-time and reoccurring mass payments to a list of users or contractors.
A timely solution for a new global market
Jia proposed that marketplace companies, such as Uber and AirBnB, that don't own their assets and leverage supply and demand, are perfect candidates for digital currency usage. Many of their payment models include taxi fares and tips that require more customization than generic payment schemes. He noted that bitcoin transactions are flexible, offering multiple redemption options. "I can drink a coke, get points and redeem those points for iTunes or bitcoin or have them directly converted into U.S. dollars," Jia said.
"When consumers fully understand the benefits of bitcoin and other digital currencies, we'll be able to achieve a complete eco-solution," Jia said.
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