Plutus, a London-based startup, is developing a mobile app that will permit users to buy goods with bitcoin at any store in the world that accepts NFC-based contactless payments
Users send bitcoins to an address displayed on the “Tap & Pay” app and get the equivalent in fiat on a prepaid virtual debit card that can be used to make NFC payments. The Plutus app also rewards users with a proprietary virtual currency, called Plutons, for using the app.
Danial Daychopan, Plutus CEO & Co-Founder, commented:
The intent of the app is to be practical. Plutus plugs into existing infrastructure to allow contactless payments which reward you on the the blockchain. It’s simply a stepping stone towards adoption and a practical use-case that many have been asking for.
The app utilizes smart contracts generated on the Ethereum blockchain platform to effect payment, and rewards users with Plutons, a digital currency issued on the same blockchain.
The company highlights five steps how to make payments through the app:
- You send bitcoins to an address displayed on the Plutus app.
- The bitcoins are forwarded automatically to verified traders on the decentralized exchange in exchange for an offer in USD, EUR, etc.
- The smart contact (DEX) running on the Ethereum platform recognizes that the traders have received your bitcoins, and their equivalent fiat deposit is released to your Plutus debit card balance automatically.
- You can now use your Plutus balance to pay at any NFC terminal in the world.
- The merchant always receives payment in their preferred currency through the global debit card network.
The app essentially uses Plutons as a rebate for using the Plutus app, which also can be converted to spend at any NFC-enabled store in the same way as bitcoins.
The startup says Plutons have zero fees and free conversion to fiat.
With a launch planned for 2016, Plutus believes that the app will permit any NFC terminal globally to be used as a bitcoin payment terminal.
Plutus was founded by a team with experience in banking, financial markets and blockchain technology. The management conducted a case study on expanding the use of bitcoin through the global NFC infrastructure, which concluded that in 2016 there will globally be more than a billion NFC enabled handsets, 166 million NFC users, and 43 million base of NFC points of sale.