Payment options for retail and electronic commerce are today limited to a small handful of companies who may be seen to behave in a monopolistic manner. This paper identifies Radpay as a disruptive innovation in the fostering and growth of an ecosystem combining consumer payment methods, merchant settlement processes, tokenized reward incentivization, and consumer marketing into one wholly different, wholly innovative environment. Radpay is a proposed framework for smart contract enforced merchant settlement with associated consumer payment methods incentivized through a token reward program. We believe Radpay is scalable to a significant number of state updates per second (potentially tens of millions) through Plasma and on the Ethereum blockchain. By addressing three major headaches for merchants (no chargeback defense, slow settlement times, high fees) and two major headaches for consumers (no rewards for debit card, limited use of reward points for many programs), Radpay intends to leverage the habitual methods of payment which already exist, and gain advantage from consumers whose usage is currently evolving from cash to digital. The Radpay token ecosystem is intended to create a tokenized reward program which can be tuned for ecosystem growth, merchant marketing, or other purpose. Radpay intends to allow virtually any company to join and incentivize consumption of a merchant’s service as the reward provides real value via token distribution.
Radpay intends to disrupt $32.3 trillion global credit card payment transaction networks. According to data from the RBR Global Payments Cards Data and Forecasts to 2022 study, China’s UnionPay holds a 43% share of the US$32.3 trillion spent in 2016, ahead of Visa (21%) and Mastercard (16%)i . This tripartite conglomerate has alienated the merchant community with consistent, persistent high fees.ii Radpay intends to deliver a faster, cheaper, more effective payment solution with blockchain. w As a consequence, Radpay also intends to impact the SWIFT network. SWIFT, the Society for Worldwide Interbank Financial Communication network which codifies a series of 600-year-old interbank protocols, is used when two banks do not have existing financial relationships, more than 24 million times a day.iii The centralized SWIFT protocol doesn’t actually send the nearly $5 trillion it manages each dayiv, it simply sends payment orders. Funds are moved through other intermediaries, often at considerable expense and delay. Radpay will attempt to address both elements of this transaction. w The shift to card payments is a global phenomenon, which favors Radpay. The total number of card payments worldwide increased by 14% to 310 billion in 2016, notably higher than the 8% increase in card numbers. Global trends support continued shift to card, away from cash.v viGlobal card payments are expected to grow by 56% over the next 5 years. We believe this shift favors Radpay. w Radpay’s adoption plan addresses merchant, consumers, banks: drives disruption. Lower processing rates for merchants. Better rewards for consumers. Faster clearance for banks. All three made possible by blockchain and Radpay’s innovative architecture. w Novel cryptocurrency derivative demonstrates first crypto consumer adoption. The Radpay crypto-economic model establishes the RAD/RDX token pair as the first well-rounded cryptocurrency, indicating one solution to the medium of exchangevii and store of valueviii problems facing the blockchain community.