- The challenges of double, triple confirming crypto addresses could be solved by the new PayID system launched by the Open Payments Coalition – Ripple’s Xpring developers, Blockchain.com and Brave.
- The platform aims at enhancing sending money, making it to be as easy as sending an email number.
- The platform will replace the long alphanumeric wallet address with simpler, memorable, and human-readable addresses/ IDs.
Over the years, users have lost their funds over a human error in typing or copy-pasting their lengthy blockchain wallet IDs. With this new technology, all users will need is an email like username to send money across blockchains and later fiat currencies as well. An official Xpring developer account tweeted,
“Sending money should be as easy as sending an email. With #PayID, sending payments across any network and with any currency has never been easier.”
A global presence
According to reports from Ripple, the Open Payments Coalition currently boasts of 40 customers and partners, including payment processor BitPay, Flutterwave, Mercy Corps, and GoPay. Furthermore, with over 100 million customers in the coalition, the adoption of the PayID is expected to be swift.
#PayID is free-to-use, and built on open standards to make sending/receiving money simple for everyone across both traditional finance and crypto. Set up PayID within minutes https://t.co/XpVSaDujVj pic.twitter.com/wH3qmQ0JhA
— Xpring (@XpringDev) June 18, 2020
Several banks, payment service providers, digital wallets, custodians, or remittance providers will be able to instantly send value across the globe through a peer to peer platform. The PayID system will, however, need to compete fiercely with the launch of Facebook’s Libra, also targeting to offer similar services to billions of customers.
Ripple’s PayID also complies with the FinCEN requirements and FAFT directives to provide a safe and regulated platform.
Is the lack of fiat gateways risky?
Despite the hype surrounding the payment solution, there remains a black spot in the coalition – a lacking representation of traditional financial companies as partners. PayID website describes the platform as a “peer-to-peer platform with no central authority,” which maybe scares these heavily regulated fields from participating in the coalition.
The consequence? For a start, the platform will remain a crypto-only transaction platform despite the website saying otherwise. To take over the globe in payments and settlements, PayID will need to offer a direct fiat channel, similar to PayPal, to banks and financial institutions. Not only the crypto companies.