Confidia Limited, the payment services giant behind the innovative HowToPay brand, has taken a significant leap forward by introducing its own custom cryptocurrency token, the HowToPay Token (HTP). With years of experience in the payment services industry, Confidia is no stranger to the complexities of financial transactions. However, to successfully compete with dominant players like Mastercard and Visa in the small payments industry, Confidia recognized the need for a tailor-made cryptocurrency solution. Here’s why a custom token is crucial to their strategy, and why no existing cryptocurrency, such as Bitcoin, fits the bill.

The Challenge: Speed and Cost

Mastercard and Visa have built their empires on one key strength: they process payments in seconds, providing businesses with multiple APIs to serve a variety of customer needs. To rival these titans, a payment solution must be both fast and cost-effective—two areas where most traditional cryptocurrencies fall short.

Bitcoin, for instance, was the pioneer of the cryptocurrency space and introduced a groundbreaking method for decentralized payments. However, it is highly volatile, with transaction fees that can fluctuate dramatically. On a busy day, the cost per transaction can soar, and clearing a single payment can take as long as 10 minutes on the blockchain. For a business handling small, everyday payments—such as a customer buying a cup of coffee—this is simply too slow and too expensive to be practical.

Why Not Use Existing Cryptocurrencies?

Most cryptocurrencies, including Bitcoin and Ethereum, face challenges when it comes to small payments. The primary issues are volatility, transaction speed, and cost. Cryptocurrencies tend to experience rapid price swings, which can make them unpredictable. Additionally, the infrastructure needed to handle global payments with the speed and security required to replace credit card systems doesn’t yet exist in many cryptocurrencies.

Other options, such as Lightning Network or stablecoins, offer potential solutions but come with their own limitations. Lightning, for example, remains in beta, with limited API options, and only a handful of exchanges accept it. For businesses that need instant, reliable transactions and stable value, these solutions are not yet sufficient.

The Core of the Solution: HowToPay Token (HTP)

This is where Confidia’s custom token comes in. The HowToPay Token was specifically designed to address the shortcomings of existing cryptocurrencies, providing a comprehensive solution for fast, low-cost transactions. The HowToPay ecosystem prioritizes two crucial aspects of payment processing: onramps and offramps.

• Onramps allow users to enter the system and make payments with various local options, providing more flexibility than traditional card payments. These options include a wide range of payment methods from different regions, offering seamless global accessibility.

• Offramps allow merchants to convert cryptocurrency back into fiat currency instantly. This conversion process is essential for businesses to receive payments in their local currency, ensuring stability and preventing the risks associated with market volatility. In this way, HTP mimics the ease with which services like Wise.com transfer money across borders, converting payments almost instantly.

Meeting the Needs of a Global Marketplace

A critical component of HowToPay’s custom token is the ability to include currency amounts and unique transaction IDs. This enables precise matching of payments to customers, ensuring smooth processing across multiple platforms and systems.

No competitor has yet provided a comprehensive solution that addresses the needs of both onramps and offramps while maintaining the speed, flexibility, and cost-effectiveness required for global, small-scale payments.

Another significant advantage of HowToPay is its compatibility with digital wallets. The system allows for transactions across thousands of wallets globally, making it an ideal solution for merchants and customers alike. With HTP, users can simply scan a QR code with their mobile phones and approve transactions in real-time—an essential feature for widespread adoption.

Push-Payment Innovation

One of the key innovations HowToPay brings to the table is a push-payment model. In traditional credit card transactions, merchants deduct funds from the customer's account, which opens the door to disputes, chargebacks, and fraud. HowToPay’s system reverses this by empowering the customer to “push” funds to the merchant, reducing risks and increasing customer satisfaction. This model aligns with the growing demand for greater control over digital transactions.

Trust, Experience, and Infrastructure

What sets HowToPay apart from other crypto-based payment solutions is the trust and infrastructure Confidia has already built. With over 1.8 million clients globally, Confidia’s established ecosystem of digital wallets, POS software, and payment equipment is ready to adapt to the new HTP token. These existing systems ensure that businesses and consumers can transition seamlessly to the new technology, with confidence in a trusted brand.

Confidia’s HowToPay Token is more than just another cryptocurrency. It’s a custom-built solution designed to overcome the limitations of traditional cryptocurrencies and payment systems, providing merchants and consumers with a fast, secure, and affordable payment option that truly competes with Mastercard and Visa. As the global payments landscape continues to evolve, the HowToPay Token is positioned to lead the way toward a future of seamless, borderless transactions.

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Disclaimer: Confidia Limited is a public company based in Sydney, Australia, and is registered with AUSTRAC for money transfer operations. The information provided in this blog post is for general informational purposes only and should not be considered financial or investment advice. Readers are encouraged to conduct their own research and consult with financial advisors before making any financial decisions. Confidia Limited (Public Company). ABN 65 641 060 782. For more information, please visit www.confidia.com.au.