If a company like Stripe can have a market valuation of $95 million then I see no reason why other Crypto projects offering a payment process won't achieve this and far more in the future. Looking for real every day use case is paramount for a tokens success as the days of having a token with no use cases are numbered.
We always here that Crypto is a disruptive technology and the one place where it is going to disrupt is through payments. Over the next few years this will become even more clear as this part of the industry is going to be under severe pressure. Removing the middlemen is where this is heading for now and knowing who those middle men are and who they service is an interesting research which I undertook this week. The Enterprise tokens that are launching will be used to facilitate the transactions being firstly converted into crypto and exchanged back into dollars or whatever currency the Enterprise requires.
I am not looking at PayPal as that is mainly used by individuals and not companies. Maybe some companies, but not the large ones and why Stripe stands out more than the others. They are the more likely target over the next few years and they should start to lose market share as they come under attack.
If we just take a look at Stripe who I have never heard of before they are one of the payment process gate keepers. They have a market share of 17.07% available in over 45 countries with a company value of $95 Billion. How they make their money is by charging companies a 2.9% flat rate plus a $0.30c additional fee for using their processing systems. This we must remember is over and above the payment charges that the likes of Visa and Mastercard charge.
Earlier I misread how the likes of Coti were going to challenge the payment processors and always thought Visa and MasterCard were the targets, but they aren't really as they provide credit. They will be affected, but not as much as the real payment processors. Over 3 million websites use Stripe as their payment processor supporting 32 different payment methods.
I have been trying to research who the Enterprise clients could be which Coti have onboarded which we will know shortly. All we know is the first one to be launched processes millions of transactions daily. Stripe is involved in many household name companies providing a payment service which Coti will now offer in a secure loop being controlled by the company involved. This will save them a fortune in fees as the 2.9% will disappear plus a large portion of the 30c will also remain in their pockets.
The top 15 companies using Stripe as their payment processing partner are as follows.
This is from my previous post during the week which explains how this will actually work.
This internal payment system will accept other crypto tokens which will all funnel through the treasury converting to Coti then purchasing the Enterprise token. The bridge is being launched next week to help facilitate the other tokens coming from other chains. This method will save time for the client whilst reducing his payment costs which is the aim of why this is happening. This is a closed loop eco system to facilitate the payments along with a custodian wallet.
I am not saying the Enterprise Token being launched shortly are for one of these companies which I think it could be, but they will take notice and will be heading that way in the future controlling their own payment processing system. This makes so much financial sense as saving the 2.9% plus the 30c is massive when you are dealing with millions of transactions daily. A company would be foolish not to change knowing how much money is at stake which they are handing over to a middleman for providing a service that can be done using a blockchain and a payment processing system for literally a few cents. There has to be a cost for providing the service even if the transaction via crypto was free.
How it could work is the customer pays using a card to purchase an item online or instore which would then convert that FIAT into the Enterprise token purchasing the item. That would then get converted back into Coti and back into FIAT using the payment processing system removing the expenses they currently pay. This would make sense and where the disruption comes in for the likes of Stripe and the others as they cannot compete against these prices.