AitikPay - WhitePaper
Disclaimer
This document is a technical whitepaper setting out the current and future developments of the AtikPay. This paper is for information purposes only and is not a statement of future intent. Unless expressly specified otherwise, the products and innovations set out in this paper are currently under development and are not currently in deployment. AtikPay makes no warranties or representations as to the successful development or implementation of such technologies and innovations, or achievement of any other activities noted in the paper, and disclaims any warranties implied by law or otherwise, to the extent permitted by law. No person is entitled to rely on the contents of this paper or any inferences drawn from it, including in relation to any interactions with AtikPay or the technologies mentioned in this paper. AtikPay disclaims all liability for any loss or damage of whatsoever kind (whether foreseeable or not) which may arise from any person acting on any information and opinions relating to AtikPay, the AtikPay or the AtikPay Ecosystem contained in this paper or any information which is made available in connection with any further enquiries, notwithstanding any negligence, default or lack of care.
The information contained in this publication is derived from data obtained from sources believed by AtikPay to be reliable and is given in good faith, but no warranties or guarantees, representations are made by AtikPay with regard to the accuracy, completeness or suitability of the information presented. It should not be relied upon, and shall not confer rights or remedies upon, you or any of your employees, creditors, holders of securities or other equity holders or any other person.
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Executive Summary
Merchants and customer are struggling with currently exist insufficient functional and costly payment gateways which does not fulfill requirement of global commerce. With payment methods like Internet banking, Debit card, credit card people started to accept alternative and fastest payment method which is nothing but blockchain technologies. Now days people started using tokens traded on blockchain to transfer fund and pay for numerous services. However, this mechanism is still not safe because of anonymous behavior of blockchain which invites fraud activities.
AtikPay coming with advance payment gateway which will support transaction settlement for fiat as well as crypto currencies. Advantage of using AtikPays are merchant as well as customer can select own method of choice for payment gateway and if both methods does not match AtikPay will take care of conversion without charging extra fees unlike current payment gateway which collect exchange conversion fee for international transactions.
The AtikPay is intended to be a comprehensive solution which offers robust payment mechanism far more efficient, fastest, creditable flexible, cost effective and secure than currently exist payment solutions. Unlike currently exist payment provider in which both merchant as well as buyer must accept same method of payment AtikPay will use atomic swap between multiple blockchains if both parties select different payment mechanism. We believe the protocol will have the potential to increase transaction efficiency, security and minimizing multiple intermediator companies which charge excess fees.
The protocol is designed as proprietary project build around a customizable chain of smart contracts that govern transaction behavior. It can be set for use as a processing single transaction, multiple transactions in one go or using combined methods. Businesses will be able to use the protocols payment mechanism as is or create new one which fit their business needs. We believe the solutions offered by the ATIKPAY Protocol will create new business opportunities for existing as well as new external companies to build their product on top of the ATIKPAY protocols. Such services may include but not limited to ecommerce websites, wallets provider, banks, international fund transfer services, crypto currencies exchanges and others.
It is our intention that ATIKPAY protocol be prompted through partnerships with businesses that have significant turnovers, by encouraging them to adopt the ATIKPAY solution from onset. We hope the protocol will plug into industries with more than 5 million daily customers spanning numerous markets.
Motivation
Existing payment method for online as well as offline purchases has been payment cards (credit cards, debit cards and prepaid cards), mobile wallets and internet banking. Major problem with this all methods are their mechanism is designed in such way that payment processing will take minimum three days for settlement of completion of transaction which is very time consuming. Also, this transaction processing involves multiple parties for payment settlements which increase processing fees. Existing card processing systems are capable to process maximum 25000 transactions per second which will be insufficient in near term due to growing ecommerce business. Additional to above drawbacks payment will be only processed in the form of fiat currencies and if both parties use different fiat currencies then additional exchange changes will be collected from merchant which increase overall transaction fees.
The structure of existing payment system is very complex and it consist of multiple participant: Credit Card Providers (Master Card, Visa & Amex), issuing banks, acquiring banks, payment processing company and payment gateway. The market is oligopolistic and the incumbent players each control their networks, dictating the rules and the costs. This centralistic structure leads to inefficiencies. The merchants that depend on card acceptance must comply with an endless list of terms and conditions dictated by the service provider. Moreover, this payment processing companies charges 2% to 10% charges for processing transactions which is very high.
Bitcoin has been introduced as an electronic cash in 2009 which was the first step toward modern online payment solution. Bitcoin was originally designed to address trust, security and transaction speed issue with traditional payment processing. Unfortunately, bitcoin is still unable to provide flexible processing solutions for most of the current billing methodologies. None of the cryptocurrencies that were introduced in past few years able to provide comprehensive single payment solutions that allow crypto holder and fiat holder to process payment.
Payment Cards
There are several kinds of payment cards provider like Visa, MasterCard, Amex. They provide different kind of cards includes credit cards, debit cards, prepaid cards and virtual cards. Payment gateway and digital wallets like Google Tez, Apple Wallet, PayPal also provide services for payment.
As per 2016 data payment card accommodate over 77% of global commerce which is equal to 257 billion transactions. Visa standalone generated 54% transactions.
Payment Card EcoSystem
Every transaction generated by swapping card or using for online transaction goes through below third-party stakeholders and each of them charge transaction processing fees.
Card Networks: This act as a midway point for facilitates transactions between user and acquiring entity. They also set interchange fees and ensure compliance followed which are set.
Acquiring Bank: Provide services to merchant with access of system require to accept payment
Issuing Bank: may either hold the deposits or extend the credit associated with the account that the card tied with.
Processors: Backoffice support for processing secure transfer of data
Payment Gateway: Work in the same way, acting as payment terminals and front-end processors. Services such as Stripe serve as a portal connecting e-Commerce merchants and acquirers.
MSPs: (Merchant Service Providers) and ISOs are intermediaries that sell payment processing services to merchants, on behalf of acquirers and processors.
As single transaction processed by multiple stakeholder’s transaction takes minimum 2 days for settlement and processing charges get increased. To overcome this problem, we have started to work on development of fastest cost-effective payment gateway which will support fiat as well as crypto currencies.
Problems
An estimated transaction of $22 trillion take place between consumers and merchants per year. Local and national currencies are used to pay for everything from your cup of tea every morning to your weekly groceries. Now days ecommerce websites changing trend of traditional purchasing method and growing fast. These ecommerce websites accept payment in different mode including Credit Cards, Debit Cards, Internet Banking and mobile wallets. Few ecommerce websites started accepting crypto currencies as payment of method. But they accept majorly bitcoin, Ethereum and lite coin. However, there are more than 2000 crypto currencies available currently. Also, there are limitation of all above mentioned payment methods.
Merchant Issues | Buyer Issues |
| 1. Refund takes long time. Sometimes approx. 15 working days |
| 2. Many times user faces double spending issue where first transaction display as fail by payment gateway but money get deducted from account |
| 3. Some merchant add additional transaction processing fees in total fees |
| 4. Not all type of payment gateway supports all type of cards (Amex is still not supported by many payment gateway) |
| 5. Still many users are not familiar with using crypto currencies as payment method |
Solutions
Currently none of the major payment processors have attempted to integrate cryptocurrency into their current payment systems. However, AtikPay believes that integration of traditional payment gateway system along with cryptocurrency would offer a wonderful opportunity to both consumer and merchants.
Thus, AtikPay intends to work with each country’s own governing body to obtain the necessary licensing in each specific country or region.
AtikPay will allow both merchant as well as buyer to select own method of choice for payment. Let’s consider that vendor accept bitcoin as payment method but buyers want to pay using Ripple then payment gateway will allow buyers to select method of payment which Ripple in this case and will display price in Ripple. Once buyer will pay amount in Ripple AtikPay Engine will perform atomic swap between Ripple and Bitcoin blockchain and payment will be deposited in merchant’s bitcoin address.
There are three types of transactions which will be processed by AtikPay Engine. Those are
Crypto to Crypto: In this type of transaction both buyer and merchant will select crypto currencies as payment method. If both agrees to pay with same crypto currency then payment will be processed directly with nominal charges. But in case if both parties select different crypto currencies, then atomic swap between 2 different blockchains will be performed with the help of side blockchain and contract addresses by ATIKPAY Engine.
Crypto to Fiat & Vice Versa: In this type of transaction any one party from buyer or merchant will select crypto as payment method and one party will select fiat currency. For converting crypto currencies to fiat and vice versa ATIKPAY Engine will process transaction with help of public exchange API. ATIKPAY Engine will connect with multiple exchanges to get best deal and as per that it will place order for buying and selling. However, price will be always calculated with respect to the rate of dollar for avoiding any volatility issues with price fluctuation of crypto market.
Fiat to Fiat: In this method payment will be procced by ATIKPAY Engine using xVia product provided by Ripple blockchain which allows international payment transfer within 6 seconds.
Our Platform
AtikPay will be fully integrated platform which covers many aspects that are related to the payment industry.
Our Payment gateway will provide interface like PayUMoney which allow both merchant as well as buyer to select own method of payment processing. Both parties can select default method however buyer will receive options to select different method for payment in case he wishes to go with other methods.
Advantages of AtikPay
AtikPay will support more than 200 crypto currencies which are available for trading via public exchange API’s. AtikPay will always be evaluating which cryptocurrencies should be added to our platform, and we will listen to the feedback from both consumers and merchants regarding the cryptocurrencies that are most popularly asked for which we may not have listed at that time.
AtikPay Engine will be enabled to make atomic swapping between major blockchains including but not limited to Bitcoin, Ethereum, Lite Coin, Ripple, Cardano, XVG.
AtikPay will work with all types of websites and mobile applications
Merchants will have a choice to either automatically convert the cryptocurrency into fiat or keep the cryptocurrency, which they can either convert later-on or spend as cryptocurrency
AtikPay will connect Credit, Debit cards, different cryptocurrencies and Bank accounts into one account interface, thus allowing the account holder to transfer money to other AtikPay account holders
Due to using xVia product AtikPay will be able to process international fiat transactions also within minutes
AtikPay will come with integrated payment dispute handling mechanism which will protect buyer from after purchase fraud