Facilitating cryptocurrency subscription payments for enterprise
Over the last few months, global interbank, B2B, and B2C payments have seen significant changes:
JP Morgan’s Interbank Information Network (IIN), a blockchain-powered network facilitating data sharing and cross-border payments, has 314 members to date, including Societe General, Royal Bank of Canada, and Deutsche Bank.
Beyond major online merchants, large corporations, such as PwC, have begun to accept cryptocurrency payments from clients and taxpayers.
Existing crypto payment solution providers are expanding their ranges of supported cryptocurrencies
Major technology companies such as Apple have expressed excitement about developing payment solutions that support cryptocurrency.
These changes go hand-in-hand with the substantial growth in digital commerce. In 2019, e-commerce generated $3.53 trillion in sales, up from $2.92 trillion in 2018. Within 3 years, these figures are expected to rise by 61% to $5.69 trillion. As more and more transactions move online, digital marketplaces continue to grow, and payment methods continue to advance.
Enterprises seeking to stay ahead of the curve are implementing crypto payment solutions for cheaper, faster, and more secure transactions, an expanded range of client payment options, and more efficient revenue management.
What is cryptocurrency?
Cryptocurrency is a form of digital currency that is created, maintained, and secured with cryptography on a blockchain. Cryptocurrency enables transactions to be more transparent and reduces the possibility of fraud because blockchains are extremely difficult to hack or manipulate. Blockchains are decentralized, meaning that customers and merchants can transfer value between one another without going through banks or financial institutions which often extract high fees and exert limitations. With these features, cryptocurrency has the potential to create a more advanced and globalized economy— reducing frictions in cross-border payments, enabling new mechanisms such as micropayments, and combatting financial inequality by granting those unable to open and maintain bank accounts, access to rapid and secure financial services.
Smart contract audit and Ethereum security firm, MythX, sought to implement a cryptocurrency payment solution in order to offer its users an easy on-chain payment alternative to fiat options, and also to encourage usage of the Ethereum network. MythX opted to use DAI, a stable coin with a value pegged to the US dollar.
How will the implementation of cryptocurrency payment solutions impact the accessibility of MythX’s products and the growth of its customer base?
MythX engaged ConsenSys Codefi Payments product, Daisy, to implement a cryptocurrency subscription payment solution for its MythX Pro product, targeting developers. MythX strategically chose to integrate a smart contract powered subscription system and support DAI payments to demonstrate its alignment with its target audience working on Ethereum 2.0
Diagram 1: MythX Product Plans
Daisy, a Codefi Payments product, enables anyone to accept cryptocurrency payments for purchases, subscriptions, usage fees, and other payments. It supports DAI, ETH, USDC, and dozens more cryptocurrencies. It empowers users to manage revenue all in one place.
THE CODEFI SOLUTION
Daisy offers its clients one central dashboard to manage payments, products, and customers. It creates invitation pages wherein clients are able to customize payment plans for individual products. Upon completion of payment plan specifications, Daisy generates a link that can be embedded on a client’s website or sent directly to an end-user. It also enables merchants to create more custom payment experiences through the use of its Daisy widget (an installed module) or by leveraging Daisy’s API.
For the MythX Pro monthly subscription, the Daisy payment plan configuration required the following information:
2. Chosen network on which to publish product i.e. Ethereum mainnet or Rinkeby test network
3. Product price(s) and subscription model(s)
Each product can have several plans linked to it with a range of different prices for different market segments, promotions, and special circumstances
Each pricing model requires further information, including model name, description, trial period duration (if any), and exclusivity settings
Diagram 2: Product Pricing Plan Customization for MythX Pro
4. Beneficiary crypto wallet address i.e. Where will payments be sent?
5. Product admin or edit permissions i.e. Who is allowed to edit this product and its pricing?
6. Product description (optional)
Upon completion, MythX was asked to review its payment plan details on a summary screen before publication. The publication process creates a smart contract programmed with the customization details. Once published, Daisy immediately generated links to landing pages for each pricing model, where users may start the payment flow. The payment links can easily be integrated into the MythX website, and can also be used by MythX’s sales team to send to clients.
On the MythX website, users may review the three product plans (Free, Pro, and Enterprise), click the call-to-action, and go directly into the payment flow
For direct sales, the streamlined payment plan specification process empowers the MythX sales team to send VIP clients bespoke offerings and special promotions on its products
Daisy’s cryptocurrency payment solution does not involve the challenge that burdens many existing crypto payment solution providers:
Typical crypto payment services require end-users to download their app and use their (often obscure) token
Other services require clients to employ their own developers to integrate their products and payment plans into the payment software
Daisy is unique because it does not require a separate app download, distinct token usage, or high-level of technical execution. It supports any ERC20 token and facilitates access via MetaMask, a tool with which the crypto community is very familiar. Daisy’s generated payment links reduce friction in systems integration and barriers to usage for end customers.
MythX launched its Pro product in September 2019 accepting all subscription payments in DAI through its collaboration with Codefi Payments product, Daisy. It also utilizes Daisy for enterprise products which require custom subscription plans, in addition to more traditional invoicing options. MythX’s full subscription process is published on the Ethereum mainnet. As Daisy evolves, MythX will consider further collaboration.
MythX is Daisy’s first integration partner. The successful integration of its cryptocurrency subscription payment service and its smooth performance thus far has been extremely valuable to validate the Daisy product.
Crypto products and services will naturally be able to utilize crypto payment solutions. Many companies will want consumers to have the option to easily make purchases with their digital assets or tokens, making crypto payment solutions more appealing. Looking forward, as larger institutions shift toward using digital assets, they will need crypto native solutions such as Codefi Payments product, Daisy.