Swiss payment startup Centi has announced in a press release the launch of its Swiss Franc stablecoin, which is pegged 1:1 to Swiss Franc reserves and backed by a Swiss bank. The company’s groundbreaking Global Payment Network will rely on the stablecoin as its foundation. This cutting-edge payment processing engine merges Swiss banking standards with BSV blockchain technology, providing a technology-first use case with many more to come.
Opening Up an Efficient Payment Processing with Significant Cost Reductions
Founded in March 2020, Centi’s mission is to eliminate the need for deep-pocketed intermediaries by allowing for direct settlement between buyers and sellers. This approach completely reimagines the four-party Credit Card model, which has been largely unchanged since the early 1970s. Its stablecoin is fully backed by a Swiss bank guarantee and runs on a highly performant blockchain from BSV, making it the closest implementation to date of a Central Bank Digital Currency (CBDC).
According to the company, the innovative solution of its new payment platform empowers merchants to obtain direct payment settlements into their preferred fiat currency without modifying their accounting practices or even acquiring knowledge about cryptocurrencies. This approach delivers the same level of service provided by the credit card industry but it significantly reduces transaction costs by up to 99%. The goal is to eliminate the hidden fees and expenses connected to conventional credit card processing, providing buyers and sellers with genuine economic influence.
Blueprint for Payment Processing
Centi’s Global Payment Network provides a comprehensive payment solution that effortlessly integrates with various payment systems, including online, POS, and cashier systems, through the use of merchant acceptance technology and a consumer app. The payment method guarantees a substantial reduction of fees by approximately 90%, compared to the ones offered by direct competitors like VISA, Mastercard, and Paypal.
Exciting Possibilities for the Future
Centi’s micropayments facilitation foundation enables low-cost, frictionless, and ultra-efficient transaction processing. This technology combines all the advantages of cash and electronic payments with the enhanced flexibility, value for money, and greater efficiency of digital solutions.
Bernhard Müller, CEO and founder of Centi, stated that the company has forged “a new payments universe”. Their payment solution is the first implementation of this technology, with many more expected to follow.
The good news is that the system is built around open Application Programming Interface (API) principles. The design allows third-party developers to build their own apps on top of it, making it tremendously exciting for the future of payment processing.
Final Thoughts
Centi’s latest approach definitely holds a lot of promise not just for customers but for merchants as well. The low-cost, streamlined, and highly efficient transaction processing unlocked by its Swiss franc stablecoin solution provides genuine economic power to both buyers and sellers. Meanwhile, its open API makes it possible for the wider adoption of its tech for various industries.
Traditional payment methods, particularly those employed by credit card companies or online payment portals, may be forced to adapt to this new innovative model in the near future to stay competitive. Right now, Visa is exploring the possibilities of integrating Web3 and digital currency solutions in its offerings to keep up with these kinds of disruptions in the conventional model of finance. It remains to be seen how it will be implemented though and how its competitors in the industry will react to these developments.