The latest addition is Shopify, one of the most popular e-commerce platforms in the United States. Whether a family-owned business or an e-commerce giant, Flexa is always looking to partner with new merchants. In most cases, they don’t have to buy any additional hardware. Furthermore, merchants can easily integrate Flexa into their POS (Point of Sale) terminals. That’s an awful lot of money saved, meaning the Flexa network doesn’t have to force its solution on anyone. Switching to Flexa, and accepting crypto instead of a credit card, can save a merchant 66% or more on their payment processing fees! Most credit card companies charge a 3% fee for transactions, although the fee can be even higher in some cases. Wal-Mart, for example, pays about $5 billion a year in credit card processing fees. High credit card transaction fees cut into a merchant’s bottom line in a big way. Since AMP’s staking yield is sustainably generated, users don’t have to worry that the value of their tokens will be diluted over time. The more AMP gets staked, the more payments Flexa can process. Money transmitter applications for other states are still pending.ĪMP’s staking yield (currently 3.9%) incentivizes investors to buy and hold the token. Flexa is registered as a money transmitter in Connecticut, Georgia, Iowa, Kansas, Maine, Maryland, Michigan, New Hampshire, Oregon, and Washington.Flexa is licensed via the Nationwide Multistate Licensing System with the ID 1840599.AMP is custodied by Gemini and Coinbase, both of which are NYDFS-approved custodians.AMP is a New York State Department of Financial Services compliant token.By working in New York, Flexa has deliberately set itself up to conform to a strict regulatory regime. Regarding financial regulations, NY is the strictest state in the union. Flexa is registered in Delaware as a corporation (a prevalent practice), but its headquarters are in New York. Unlike Ripple XRP, which is currently facing a massive lawsuit from the SEC, the Flexa payments company has gained regulatory approval. There are three key reasons that AMP and the Flexa network could succeed in bringing instant crypto payments to the world: However, that will end once enough merchants use the protocol to support a generous staking yield. Currently, Flexa is propping up the staking yield by distributing tokens from the treasury. At least, that’s how it will work in the future. What’s brilliant about this model is that the staking yield comes from real-world use and does not depend on constant token inflation. The more merchants that accept crypto payments via Flexa, the higher the staking yield. Incidentally, this is similar to how MakerDAO and the MKR token work. AMP stakers receive a passive income while taking the risk that a small portion of their tokens could be sold to reimburse a merchant. The merchant can accept instant (zero confirmation) payments since they are insured against loss. With this model, you can see how AMP and Flexa work together to create a decentralized solution to crypto payments. The 1% transaction fees that the merchant pays are used to buy AMP on the open market and distribute it to AMP stakers.If a merchant doesn’t receive the crypto they were supposed to, enough staked AMP is liquidated to cover the merchant’s losses. The staked AMP tokens act as collateral against loss.That’s great for the merchant, but what does that have to do with the AMP token? If a customer pulls off a double spend or there is some other problem with the crypto payment, the Flexa network reimburses the merchant. The Flexa fee is usually about 1%, compared to the 3% or higher fee merchants must pay to credit card companies. The merchant pays a fee to accept cryptocurrency payments via the Flexa network. The simplest way to think about Flexa and AMP is as insurance for transactions. In a single sentence: by insuring against loss, the Flexa network allows a merchant to accept an instant crypto transaction without forcing the customer to wait a long time. That long wait time is where AMP and Flexa come in. Most merchants require 30 to 60 minutes (3 to 6 confirmations) to guarantee they don’t lose money due to a double spend or chain reorg. However, the transaction is not confirmed until much later. If you’ve ever sent BTC, the transaction often shows up in the receiver’s wallet within seconds. The company’s primary responsibility is getting merchants to accept crypto payments via Flexa.įlexa and AMP work together to solve the classic problem in crypto: how to buy a cup of coffee with your Bitcoin. Flexa is the payments services company that created AMP.AMP is an ERC20 token that’s used as collateral in the Flexa network.There are two critical parts of the AMP project. J3 min read The Problem that AMP and Flexa Solve. Verifiable Collateralization for Digital Payments and Transactions. AMP and Flexa Solve Classic Crypto Problem.
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