There was further clarification for LeoMerchant on the most recent Leo AMA. During that program, 
So far, we are seeing some of the infrastructure being developed on LeoDex. This is the pillar upon which a massive system could be built. It is something that is bigger than anything proposed so far relating to Hive.
What is the big deal?
We are dealing with potentially a real world payment system. This means that getting merchants from all over the world that could utilize this payment system. It will be more than just online stuff like digital downloads and subscriptions. We are talkiing about everyday items.
LeoMetchant is going to tie in mobile payments. This will allow retail establishments to accept payment in most any cryptocurrecny yet get payment in whatever the merchant desires.
For example, if someone wanted to pay in ETH, that would be possible. It could then be done using a QR code, with the merchant receiving what it desires (say USDT). Both parties could transact how they wanted.
Evidently there are some conversations with local retailers around Khal. One is a gas stations that already stated it wants payouts in USDC (Arb). This is possible through the use of LeoDex. That means people could pay for whatever the store offered, such as gas or beverages, and utilize crypto as payment.
This obivously expands the potential TAM available to Leo. None of these people have to know about InLeo or have an account. It is simply a payment mechanism, simply to Square or any other payment application.
What is the potential for Leo?
This could have a lot of upside. As always, building is important. The ability to process transactions is enormous business. We know what PayPal, Visa, Mastercard, and Square can generate. Like always, captured even the smallest of slivers of this market could be rather impressive.
Here is where the LEO tokenomics enter. Due to the fact that Leo has transaction fees tied to the Dex, each payment will amount to a small cut for Leo. This is used to buy LEO (along with Cacao) and place it into the permanent liquidity pool.
Imagine what this might look like with a few thousand transactions going daily. Then have some fund and 10x that amount.
The key is to test the point-of-sale service and then offer it. This is something that, once established, can simply be offered out online. Merchants can opt to sign up simply by going to the wesbite. At first it requires promotion but, after a while, retialers start to learn about it.
Another aspect to this is liquidity. One of the advantages to a lot of transactions is the liquidity that is flowing through the system. This causes arbirtage opportunities as the different pools get misaligned. Here is where more activity results as the arbitrage bots jump in to close the gap.
We will have to see where this goes but there is a lot of nice potential. Having a POS (point-of-sale) application will help to set Leo apart.
