CEO Of PumaPay, Yoav Dror Describes Bitcoin [BTC] As A Weak Payment Solution, Discusses PumaPay
In a recent interview with Finance Magnates, the CEO of PumaPay, Yoav Dror described the specs of PumaPay, an open-source Pull Payment Protocol, the goal behind the protocol along with its native token, PMA. He also made comparisons of PumaPay with Bitcoin.
Based on the interview, Dror makes an equal effort in describing both the pros and cons of Bitcoin and addresses why Bitcoin would not make an appropriate payment solution. The following are some of the key highlights worth looking into.
According to Dror, PumaPay is an initiative that can potentially bring together traditional and digital currencies, as he believes that the two are “different worlds” at the moment. He added that consumers will be able to convert traditional currency into the PMA token prior to making both “online and offline purchases”.
Dror explains why he views Bitcoin as an inefficient payment solution. In particular, he said,
“If we look at the Bitcoin network, there are some inherent disadvantage that prevent it from being a payment solution.”
Evidently, he shared the two well-known problems associated with the giant currency, one being the problem of scalability and second, the high transaction fees tied to them. However, he commends Bitcoin for being a “proof-of-concept for blockchain technology” and believes that “it’s pretty successful”.
What Are The Uses Of PumaPay?
What differentiates PumaPay from other blockchain-based projects, is the fact that consumers can not only use it to make payments, but they can also set up for monthly subscription, which the team at hand refers to as the “Pull Payment Protocol”. This saves a lot of time, as consumers would not need to make payments monthly, as the funds, under an agreement, will be pulled out by merchants.
Dror explained the concept of push and pull payments in the interview by stating:
“In blockchain networks other than PumaPay, transactions could only be “pushed”; that is, they can only be voluntarily sent by wallet holders to merchants. They can’t be “pulled” by (for example) a monthly subscription or a utility company.”
This difference alone can potentially allow the two currency worlds to collide, which is something that many are working towards. In particular, this solution can replace traditional payment methods like credit cards, as the pull protocol can increase crypto adoption by users for daily activities. Dror also emphasized that the pull method will only work “subject to pre-defined terms that are approved by the customer”, which is very similar to how prepayments normally work.
What The Future May Hold For PumaPay?
Based on the claims made, PumaPay has already been in effect through IMLive, PumaPay’s launch partner. Allegedly, users can now go to the IMLive platform and use PMA tokens.
As for the pull protocol, Dror further stressed that it is underway, as the team involved is
“still currently developing the entire architecture and the associated products to allow recurring payments and other types of payments.”
These efforts will occur on the Ethereum blockchain, conversely, Dror argues that
“Ethereum is a good Proof-of-Concept, but it’s not good enough scale-wise or speed wise.” Adding that other alternatives will be further researched sometime in the future.
PumaPay’s PMA tokens are currently not offered on any major exchanges, however, Dror is confident that it will happen one day, affirming that “we will get listed on major exchanges very, very soon.”
Dror trusts that PumaPay can help to resolve current issues associated with cryptos. He deems that it
“combines the advantages of blockchain technology with the flexibility and scalability of credit cards,” further avowing that Pumapay is a strong candidate/solution to consider when it comes to “any online high-risk merchant”.
For the time being, the team is working towards offering essential tools to make integration feasible, bringing more payment options and believes Pumapay can be useful for affiliate marketing.