PayID aims to unify bank, bitcoin and mobile payments
A coalition lead by cryptocurrency company Ripple on Friday announced the launch of PayID, the world’s first open-source online payment system that allows users to transfer and receive cash across different platforms with one payment ID.
Users create a single ID, like “user$domain.com,” to receive money from banks, mobile transfer apps and even a bitcoin wallet, the company said, in order to simplify money transaction processes online.
While many options already exist for transferring money online, services remain heavily fractured and complicated. Banks typically require an account number, routing number and a complicated Swift code to transfer money overseas. For mobile cash transferring applications, transactions across different apps are not allowed. For example, only Paypal users can receive cash sent through Paypal, and those with Toss or Kakao Pay accounts cannot.
The underlying code for PayID is open source, allowing other payment services like Paypal, Toss or Venmo to integrate its code into their platforms.
Forty companies announced plans to participate under the Open Payment Coalition, which consists of multiple blockchain projects, payment gateways such as Flutterwave and the Indonesian fintech company Gojek. Combined, the partner companies account for about 100 million users.
Ripple said it provides an end-to-end travel rule compliance system that also satisfies both the requirements by the U.S. Financial Crimes Enforcement Network and the Financial Action Task Force. The travel rule is a strict new regulation that requires firms dealing with cryptocurrency transactions above a certain value to confirm the remitter's identity.
Korea’s largest cryptocurrency exchange, Coinone, will be the first Korean company to partner with the payment solution.
“PayID is expected not only to simplify the experience of money transfer but also to bring innovation to our daily financial lives in the long term. We will do our best to support its successful landing as a partner,” Coinone CEO Kevin Cha said.
BY KANG JAE-EUN [email@example.com]