Thanks to blockchain technology, Yosemite X has Visa and MasterCard in its crosshairs, business operations manager Bryan Jin said.<\/p>\n
The Palo Alto-based fintech companys newest release, the Yosemite Card, looks to take a large bite out of the credit card companies estimated $55.4 billion annual take in processing fees. Merchants will be charged .1 percent of every $10,000 in transaction volume, with a cap of .3 percent.<\/p>\n
We wanted to utilize blockchain technology to create a seamless transaction between parties and eliminate the middleman, Mr. Jin said.<\/p>\n
But there was a catch. Existing blockchain technologies didnt meet Yosemite Xs scalability needs so they created their own semi-public blockchain with a potential capability of millions of transactions per second (TPS). Existing card companies TPS top out at a much lower total.<\/p>\n
The Yosemite Card eliminates the intermediaries such as payment company, credit card company and card network and settles payment between retailer and customer via a blockchain transaction ledger. Payment is collected in digital fiat tokens equal to the charge amount and converted back at the other end.<\/p>\n
Facilitators charge fees of two to five percent, Mr. Jin said. Yosemite Card is able to bypass that requirement so we can offer a significantly lower transaction fee.<\/p>\n
When blockchain technology debuted it was basic in its capability but as it developed, so did its potential to change the industry landscape, Mr. Jin said.<\/p>\n
It connects users so they can interact directly with each other and not have to go through a centralized entity such as Visa or MasterCard. The possibilities of what it could create are endless.<\/p>\n
Yosemite X will take their time with rolling out Yosemite Card, Mr.Jin said. They will concentrate around UC Berkeley and other college towns where there is a concentration of merchants employing it. Those merchants will attract students who will in turn attract more merchants.<\/p>\n
Security is strong because, unlike most credit card companies, Yosemite X does not employ a centralized server. They also utilize a combination of an AI-assisted one-time password and static QR code.<\/p>\n
We offer it as secure way of presenting an account number instead of a 16-digit number, Mr. Jin said. On mobile payments the QR code changes every time and is combined with a one-time password which is a six-digit number. If someone then steals that QR code it wont mean anything.<\/p>\n
Were utilizing a new technology to improve an old way of doing things, Mr. Jin said.<\/p>\n
Image byJan VaekfromPixabay<\/p>\n
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