Every now and then I get this question from new comers to the financial blockchain scene. They’ve just found PayPie and they’re not sure if they’ll go through our whitepaper to get the whole picture of the value behind PayPie tokens, so here’s a quick explanation on one of the main sides of becoming a token holder.
First of all, let me just state what PayPie is all about. PayPie brings ultimate trust and transparency to the financial markets by introducing the world’s first credit risk assessment based on blockchain accounting. The platform solves the problems of fraud and inconsistencies which exist in isolated accounting systems by allowing for real-time audit and analysis of financial statements on the blockchain. By looking at the risk score analytics, you will be able to make a sound judgement on what to expect from the companies that you are going to buy the invoice from.
Smart contracts on the blockchain are pretty new and have opened the door for this global opportunity. Anyone from anywhere can finance the invoices of businesses using international credit ratings on PayPie’s marketplace. When we presented the PayPie at the Accountex USA event early this month we could see that hundreds of minds were being blown away by the disruptive structure of the platform.
How big is the market opportunity?
Fire the bank
Though I can’t comment on the specifics, let me share some pertinent information on a few regional markets. In the USA and Canada, we get almost 0% return for any deposits in the bank. This is a screenshot of Bank of America’s website showing a pathetic 0.01% return over 12 months.
But if you, as a business, go to the same bank for credit, they would charge you anywhere between 6% to 14%. We will bring exactly this kind of business to PayPie so that you can help fund other businesses while being rewarded for your efforts, essentially replacing banks for that matter. Conventional invoice factoring companies in developed countries charge around 2.5-4% for a 30 day credit and sometimes the origination fee can make the entire process inviable.
But this situation can be even worse in many other parts of the world. In Brazil, for instance, the ongoing rate can be anywhere between 8% to 12% per month. Same can be said about India, Philippines and most of the countries worldwide. We will strive to become a platform of the choice for businesses from these countries because we will able to facilitate cheaper loans by connecting with token holders who have poor yield in their own countries. PayPie will handle KYC and regulatory issues and will ensure you finance businesses with empirical evidence of stellar financial health. I keep hearing from experts from all around the world that there is no better way to make informed decisions and to identify great investment opportunities. I completely agree.
Invoice financing is a 3 trillion market today and we believe that massive wealth will be created globally when smart contracts cut the middleman off the picture. The benefits will be shared by all, from big financial institutions to micro investors, from credit card companies to rating agencies, all will make better and smarter decisions based on live and truly accurate financial data for the very first time thanks to the power of blockchain and PayPie.
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