How delivery services may become the big winners in IoT payments
The number of websites where vendors and customers directly conduct business with each other is growing steadily. Recent examples of successful peer-to-peer (P2P) platforms are Airbnb (apartments) and Uber (taxi).
Until the appearance of blockchain technology, a third party (bank, credit card, etc.) was always needed for the financial execution of the services used. The blockchain technology, who’s first known application is bitcoin, enables the transmission of value (money) on the internet and is considered by many as one of today’s main, disruptive technologies.
The implementation of blockchain technology not only makes the middleman unneeded, also the redesign of processes can change business fundamentals. One of these processes is the payment of goods ordered over the internet. The delivery service can facilitate the P2P financial settlement between the vendor and customer as an independent third party.
This blog describes how a P2P payment works for goods ordered over the internet.
QUASAR is our blockchain technology based IoT payment solution. With QUASAR, IoT payments are made between digital wallets, which are digital accounts in which assets (in this case digital money) are stored. These wallets are linked to a traditional bank account. QUASAR wallets offer customers and vendors a fast, cheap and attractive method for payments of online ordered (physical) goods.
Cash on delivery process with IoT Payments
Instead of handing over large amounts of cash money to a postman (German Post accepts Cash-on-Delivery (COD) payments up to 1.600 Euro, Swiss Post up to 10.000 SFr), the customer pays the amount due from their QUASAR wallet to an escrow wallet with the purchase.
This transaction is – similar to a bank transfer – irreversible. The transfer from the escrow wallet to the vendors´ wallet takes place after the customer confirms receipt or the postman, acting as a notary for this transaction, confirms the delivery to the customer.
Since this transfer is cashless and carried out as an electronic signal, the amount is immediately credited to the vendors’ wallet. If the delivery period is not adhered by the vendor, the escrow wallet can transfer the money back to the customers’ wallet automatically.
Customer and vendor protection with QUASAR IoT payments
Customer and vendor protection are equally respected when using an escrow wallet, and both benefit from the convenience of quick money transfers. Unlike traditional instant payment methods, QUASAR provides more than just a ‘promise to pay’: not only is the money already deposited in the escrow wallet by the customer with the purchase, the money is transferred to the vendors’ wallet at the moment of delivery. Also, returns and refunds are handled fast and efficiently via the escrow wallets.
The new role for the delivery organization
Delivery services already accept cash on delivery on behalf of their clients (vendors). This is costly and also exposes the parties involved to security risks. Using digital wallets, the delivery organization can offer their customers a new payment functionality without changing the delivery process. Only the delivery service can offer this service because it is ultimately the organization that is trusted by both parties. This position opens up new possibilities to generate revenue and enhance the delivery process.
QUASAR provides both the vendor and purchaser with a safe, timely and cost-effective alternative to existing payment methods. The costs associated with QUASAR are low, because time-consuming administrative processes are replaced by the proven and established blockchain technology.
For delivery services, QUASAR IoT payments are a safer and faster alternative to traditional methods. The delivery service is trusted by vendors as well as by purchasers. Having this unique position in the delivery process it can replace financial settlement.