One of the big headlines
The buzz from Coindesk’s 2019 Consensus event in New York City was all about an intriguing initiative by Flexa. Their creative spin on a crypto payment network tailored for retail outlets made quite an impression. During the event, they celebrated the reveal of a successful funding round, debuting their network's first app soon after. Flexa's innovative solutions caught the attention of both the crypto community and established retailers.
$14.1 millionFlexa has been developing a crypto payments system for over a year, officially starting operations in 2018. Their app, Spedn, is surprisingly accepted at prestigious outlets such as Whole Foods and Bed Bath & Beyond, making waves at Consensus for its potential to revolutionize payments.
Spedn .Breaking the norm, Flexa offers a crypto payment network that directly synchronizes with retailers, steering clear of traditional debit card structures. This direct connection to retail giants like Whole Foods and Baskin Robbins is a refreshing break from the norm and reflects Flexa’s commitment to innovation.
So, what exactly are Flexa and Spedn?
Real-Time Crypto Payments
Integrating crypto into current payment systems is an uphill battle, fraught with challenges that have hindered other initiatives. Flexa’s unconventional approach has been to bypass these legacy systems entirely, which, according to their reports, was a strategic decision to simplify the process for network compliance.
“Over the last year, we’ve established innovative links with thousands of store terminals nationwide, effectively sidelining traditional payment structures and channeling crypto transactions directly to retailers.”
Flexa :Presently, the Flexa network, utilizing Spedn, facilitates a payment system available in numerous locations. The network’s aim is to significantly reduce transaction fees and the irreversible nature of crypto minimizes fraudulent activities for merchants.
Tyler and Cameron Winklevoss once bought coffee at Starbucks using their very own cryptocurrency. But this is just the start of an expanding narrative, as major retailers like Nordstrom and Whole Foods now accept bitcoin and ether.
30,475 stores .From the retailer's standpoint, payments via Flexa convert to fiat currency immediately, rendering currency exchanges unnecessary for the merchants. This seamless backend operation is diligently managed by exchanges affiliated with Flexa.
Flexa strikes a balance between fiat and cryptocurrency transactions through its Flexacoin, a neutral collateral token.
https://t.co/ftcn7tNX1T by @DelRayMan via @Forbes #Consensus2019 #NYCBlockchainWeek pic.twitter.com/lyJlwNiCKp— Forbes Crypto (@ForbesCrypto) May 13, 2019
This token operates on the Ethereum blockchain, facilitating liquidity essential for real-time payment processing at sale points.
“…The utility of the Flexacoin token within the Flexa network lies in temporarily securing crypto deals while awaiting blockchain confirmation.”
Flexacoin is an ERC-20 token
To put it simply, Flexacoin serves as a bridge, offering merchants assurance that a transaction will complete even before blockchain confirmation is finalized.
details the primary utility of Flexacoin as:For instance, if Alice chooses to buy ice cream at Baskin Robbins using Bitcoin, she would scan her Spedn app barcode at the checkout. In real-time, Flexa advances the fiat amount to the merchant, completing the purchase seamlessly.
Usually, blockchain transactions finalize smoothly, but if a rare disruption happens, the Flexacoin collateral comes into play to ensure coverage. However, this raises questions on how the collateral is maintained.
Individuals have the option to stake their Flexacoin via wallets, contributing to the liquidity necessary for transactions. Staked tokens receive transaction fees from the app within the Flexa network as rewards.
Given this setup, the volume of unconfirmed payments passing through the Flexa network coincides with the amount staked, highlighting the criticality of staking for scalability.
Grasping the distinction between Spedn and the Flexa network is paramount. Spedn is a downloadable app acting as a custodial cryptocurrency wallet within the open Flexa network, using barcode-integrated payment authorization codes at checkout systems with participating retailers.
The Spedn wallet allows users to store funds, which serve as a medium for transactions directly with retailers, who, in turn, receive the fiat equivalent — safeguarding them from crypto volatility through Flexacoin collateral.
As a custodial tool, Spedn focuses exclusively on cryptocurrency spending. Users are advised to maintain a balance akin to carrying cash in a physical wallet for seamless operations.
Users can deposit Bitcoin , Bitcoin Cash , Ether , or Gemini
Another compelling aspect of Spedn is its collaboration with Gemini, thus supporting Gemini Dollars. Leveraging Gemini’s stature as a NYDFS-regulated exchange, all Spedn wallets are well-insured and compliant with Gemini's robust regulatory infrastructure.
Analyzing Flexa and Spedn's Place in the Expanding Cryptocurrency Payment Arena
Exploring how transactions function within the Flexa network is crucial. With the upsurge in diverse crypto payment methods on the horizon, understanding their unique attributes and trade-offs becomes more essential than ever.
Flexa’s association with popular retailers highlights their ambition to welcome a growing community of crypto users into their business networks. It's clear that retailers are eager to see what crypto brings to the table.
However, it also uncovers a distinct approach that sets Flexa apart from standard crypto payment options.
Unlike a self-managed payment processor like BTCPay Server, where merchants handle their funds and payments, Flexa employs an NYDFS-regulated custodial exchange within Spedn — Gemini — adding a layer of assurance that merchants and regulators find appealing, blending cryptocurrency and conventional financial systems.
Flexa streamlines payment complexities for merchants using their existing systems, letting Alice pay Bob in crypto without hassle, albeit with some minor costs.
The insights provided by Flexa regarding certain merchants' temporary inability to use Flexa services reveal much about the process. The current phase hinges on support from payment processors.
While the ultimate ambition lies in crafting a native crypto payment network for consumers and merchants, exchanges like Gemini perform crucial crypto-to-fiat conversions in the background.
Flexa infuses additional compliance layers into a value transfer system that generally opposes such structures. The way Flexacoins are distributed will influence their future success significantly.
depending on their payment providerFacilitating user-friendly crypto payments is a vital stride towards broader adoption. However, two major schools of thought vie for prominence, each with their method of achieving it.
One camp leans towards preserving the original ethos of crypto as a censorship-resistant, peer-to-peer payment system exterior to traditional finance, necessitating more effort from merchants to engage with and manage their funds.
Projects like Flexa, on the other hand, personify a balanced approach, harmonizing ease of use and adherence to regulations for both customers and vendors, offsetting the core idea of cryptocurrencies like Bitcoin.
distributed akin to a 2017 ICOYet, in the grander scheme, payment systems that bridge original crypto philosophies with established payment networks might emerge as the dominant trend.
Drawing sufficient users and merchants into handling crypto payments independently presents notable challenges; thus, merchants may favor a system like Flexa to simplify cryptocurrency payment configurations.
Promoting accessibility, Spedn users can bypass credit card or bank account ownership, democratizing crypto transactions for a vast audience. With Flexa planning to feature additional applications and development opportunities, proponents of traditional cryptocurrencies may find increasing allure as the network matures. Spedn is merely the foundational step, with more merchant partnerships on the horizon.
Read: What is BTCPay?
The forthcoming release of a wallet SDK plus other developer resources will further shed light as Flexa enhances its offerings.
I'm an avid champion of the decentralized Internet and progressive cryptocurrency platforms, dabbling in blockchain writing, web development, and content creation. Reach out at [email protected]
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