Crypto payments merchant, Flexa, has created provision for other applications to process transactions in cryptocurrency. Flexa’s own SPEDN app has been processing cryptocurrency since May and it will now give other applications provision to do the same.
Applications which want to use the payment platform will have to place a stake against Flexa’s Flexacoin (FXC). This will enable the apps to provide secure payments to merchants without the dangers that come with malicious reversal of transactions. Once Flexa has transferred the funds, there is no chance that the transfer can be reversed.
Flexa ultimately aims to make crypto transactions much easier across the board and have digital assets become part of the global economy. The company plans to make its business model available to all its possible clients and enable these customers to start making use of crypto assets.
The crypto firm held a private sale of its FXC tokens in April and they accumulated $14.1 million from the token sale. The availability of staking services means other applications are able to offer crypto payment services to their clients. One of the initial use cases that can be developed is the provision of wallet services. Applications that already have crypto services for their clients will be permitted to stake FXC and use it to make direct payments to merchants.
Besides applications providing the funds to be used for staking, users of the given application can put up their own holdings as part of the stake that is placed against FXC. A pooled stake spreads the fees charged by Flexa for using their payment platform.
Flexa has clarified that they are not a platform which just provides a service and charges its users for the service. The fees charges on Flexa will be returned to those who would have placed their holdings for the stake. When users make a contribution to a stake, they will get a portion of the fees back which is proportional to the stake placed initially.
Purposes of staking
Staking provides collateral which a merchant can use as security against reversed funds. A payment made using Flexa needs to reach a merchant as soon as possible but this isn’t always possible because blocks take time to complete transactions. To avoid the delay, Flexa makes an immediate settlement of the amount needed by the recipient.
The entity or group that wants to make a payment provides a stake equal to the amount they want to pay. If a payment isn’t delivered, the smart contract detects that it hasn’t reached the recipient and takes the required amount from the collateral placed as a stake against FXC.