Although the ubiquitous nature of credit and debit card usage throughout the world has revolutionized financial transactions, the glaring reality for many small business owners is that a select few payment processors who dominate the industry have a stranglehold on the flow of money. Many large merchant account providers will refuse to process transactions for high-risk businesses, which limits the options that are available to hard-to-place merchants. High-risk markets include a huge amount of businesses, totaling to around $500 billion in transactions annually. With so few processors to choose from, merchants can find themselves simply signing up with the first provider that will accept them instead of shopping around and looking for reputable, experienced processors that specialize in high-risk merchant accounts. This leads to headaches down the road, as high-risk merchants are especially vulnerable to chargebacks, fundholds, excessively high rates, or placement on the TMF/MATCH list.
No industry has witnessed the power of the payment processing industry greater than the cannabis industry. The cannabis industry, which has led to $655 million in tax revenue in the past year, has exploded in recent year with state wide legalization in several states including Oregon, California, and Washington. However, the cannabis industry still faces a massive hurdle due to the fact that most payment processing companies will not integrate their services due to federal restrictions on cannabis. Consequently, companies in the cannabis space are forced to carry most of their revenue in cash, which leads to theft and other dangerous crimes. The cannabis industry highlights the growing problem of payment processors snubbing high risk merchants that don’t fit their respective risk profiles, leaving many small business owners out of options.A solution has begun to materialize out of the murky status of the
A solution has begun to materialize out of the murky status of the high risk merchant processing issue: Blockchain technology. Several companies in the payment processing space have started to experiment by leveraging the seamless, borderless, and cheap transaction fee capabilities of Blockchain protocols like Ethereum. Leading the charge is a new service, Render Payment, who strives to disrupt the high risk merchant processing industry with their proprietary solutions.
The Render Payment Solution offers merchants a stable, reduced cost, low charge back methodology of exchanging goods and services while the consumer utilizes traditional means of payment such as debit and credit cards. What makes their service unique as compared to other cryptocurrency based solutions is that both the merchant and the end user don’t have to maintain cryptocurrency wallets of their own unless they want to. The cryptocurrency exchange process is done behind the scenes using smart contract technology so the buyer and seller can facilitate their transactions in a way in which they are familiar and confident. One of the great challenges in trusted computing is providing the proof that the consumer is who they say they are without fear of the dissemination of their personal information. The purpose of the launch of the Render Payment RPM Token is to put the hundreds of millions of dollars of research to work by leveraging Blockchain technology to secure online financial transactions free from third party influences, charges, and expenses.
The ability for Blockchain technology to help businesses in the high risk merchant processing industry break the chain from the traditional payment processing industry carries massive potential. Currently, $500 billion a year in transactions fall under the “high risk” category. By giving companies in this space the ability to connect with their customers and gain easy access to revenue, companies like Render Payment are creating solutions that alleviate the crisis that many small businesses in the world currently face.
If you’d like to contribute to the Render Payment ICO, please visit: https://renderpayment.com/