Blockchain enabling Retail POS payments for web 3

One of the biggest challenges facing the mainstream adoption of cryptocurrencies is the ability to pay Merchants using digital assets. Frii Pay’s mission is to directly connect the XRPL to the existing 50+ million retail smart POS devices across the globe – enabling Merchants and Consumers access to web 3 products, services and experiences at point of sale.

A New Web 3.0 Payment Network

We are setting standards for future commerce based on best practices established over the last 20 years, building a framework for Web 3.0 payments, to support and protect consumers, merchants and providers

• Special Merchant Accounts for Web 3.0 – On-chain wallets with custom features for retail payments
• Daily settlements – Automated off-ramping of takings into merchant FIAT account
• Chargeback Arbitration – Ensuring Consumer rights protection through peer review processes
• AML & Fraud Monitoring – KYC & real-time analytics that watch for and flag questionable behaviour

Blockchain technology, in particular the XRP Ledger, makes the secure exchange of assets cheaper, faster and more transparent than traditional i.e. Web 2 payments. Whilst identity verification is an important factor for regulation, blockchains are providing intelligent ways to authenticate without unnecessarily exposing personal Consumer data.

Furthermore, due to its transparency and interoperability, the use of Blockchain enables more enriched experiences for the Consumer. Where Web 2 transaction data is isolated, Web 3 technologies can leverage wide data sets without compromising the Consumer’s security or identity.

How it works?

The Frii Pay platform provides an end to end web 3 payment solution, leveraging a range of technologies and partners.

The solution combines a Merchant POS terminal application, a Consumer Crypto wallet and a specialised Merchant Crypto Account to settle the final payment in FIAT.

To satisfy regulators. Frii requires Consumer accounts to be KYC’d and an enhanced KYC is required for Merchants, in order to be boarded to the platform.

The Frii POS terminal application is built on Android OS and can be deployed on a vast majority of smart POS devices around the world via a simple OTA download.
The application is designed to integrate with hardware to provide features such as receipt printing, magstripe and contactless card reading and QR/Barcode scanning.

The UI enables Merchants to accept payment by Cryptocurrency or traditional payment means through the same checkout flow. The Merchant simply enters the amount to be taken in their local currency and by selecting Frii Pay rather than Pay by Card, the terminal presents a QR code payment request generated from the XRP Ledger.

Consumers can then scan this QR to sign the transaction using their Xaman (previously Xumm) wallet (A Consumer-focussed Frii Wallet app is in development). The wallet UI presents the Consumer with the identity of the Merchant and requested amount and uses the XRPL Dex and pathfinding to present options to fulfil the payment with any tradable currency that they hold in their wallet.

Once signed, the funds are deposited into the Merchant’s Gatehub Crypto account held on the XRP Ledger and confirmation receipts are provided to both the Consumer and Merchant. At the end of the day, qualifying funds are off-ramped to the Merchants FIAT account automatically.

Whilst the current solution has been built on the XRPL for speed, reliability and security, interoperability with other chains is equally possible either directly or through bridges with the XRP ledger such as the EMV sidechain.

Frii Pay has four main objectives:

• Create a single POS terminal application that allows Merchants to use their existing POS hardware to directly connect to all Web 2 and Web 3 payment networks.
• Connect the first Blockchain XRPL to the Frii POS application and pave the way for interoperability with other chains to widen accessibility for Consumers and Services.
• To replicate the standards and framework Visa / MasterCard uses for Web2 and provide them to Web3.
• To use Web3 technology to enhance everyday payments by turning transactions into interactions.

Whats the business case?

An increasing number of Consumers are now holding cryptocurrencies and looking for everyday use cases, Governments around the world are gearing up to introduce digital versions of their own currencies which will require acceptance at retail, and over 1.7 billion people worldwide lack financial services and are ready to leapfrog traditional and expensive web 2 solutions.

As mentioned, blockchain technology provides a secure and cost effective alternative to current infrastructure and there is a critical need for a universal solution.

Success metrics:
The successful deployment of a new payment infrastructure is first about how accessible it is to Merchants and Consumers. Since we are not limited by bespoke hardware, Frii Pay can be used by over 50 Million POS terminals and any consumer with a smartphone can use it, currently 6.94 billion people.

Beyond this, the next measure would be the availability of the service by the number of merchants on-boarded. This will be largely governed by regional regulations and active demand for the solution.
Once a critical mass is on-boarded we would then be looking at how many people actually use it and how many and how much in payments it processes.

The project is in pilot stage and being used in different trials as Frii Pay grows

This Use Case was submitted to CBRC in December 2023 and Verified by Antony

The CBRC Score of 84 has been awarded: “Making payments in a physical world is complex with retailers and payment providers spending $millions on POS (point of sale) payment solutions, add to that the Digital channels, the mobile channels and the social media channels…then add in web 3 – you have a very complex payment ecosystem with many, many players. If you then add the different currencies (Fiat and Digital) and your combinations of payment pairs is incalculable. Frii Pay is looking to solve this complexity with Blockchain enabled payments and a variety of payments types in and out. One view of the truth is critical for this project and the transactions being payments, security and certainty is a must”

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