Proposal “payment-processor“ (Closed)Back

Title:Dash to Fiat Payment Processor
Owner:DartPayments
Monthly amount: 400 DASH (364000 USD)
Completed payments: 1 totaling in 400 DASH (2 month remaining)
Payment start/end: 2016-03-07 / 2016-06-21 (added on 2016-02-23)
Final voting deadline: in passed
Votes: 839 Yes / 1187 No / 0 Abstain
External information: www.dashwhale.org/p/payment-processor

Proposal description

UPDATE:

Keep updated on our progress at our blog or on Twitter

Intro

To drive adoption of Dash one of the important pieces of infrastructure required is a high quality Dash exclusive payment gateway with instant fiat conversion. Bitpay and Coinbase have been instrumental in encouraging merchants to add Bitcoin as a payment option on their sites.

We are proposing to create a high quality Dash to fiat payment processor. The only currency we will accept is Dash.

A short presentation to complement the text below is available here. The DashTalk thread can be found here.

Demo

Visit our website at dartpayments.comwhere you can sign up to our mailing list or click through to our demo site.Dashstickers.xyz is an early working demo of our processing and conversion software. You can purchase two Dash vinyl stickers for only $2.

Be aware though this is early software and that you can get in touch with us at contact@dartpayments.com.

Amount requested vs. costs

We propose to request 400 DASH from in each of the next 3 budget cycles. This will provide us with capital to develop a beta version of our software for select merchants to implement on their sites. Costs are very much an open ended question, we'll build as much as we can with the funds received. We expect to contribute additional funds from our own pockets on top of the DASH we receive from the budget.

Note: Amount was chosen when there was still 455 Dash available in the next budget (currently 400 left).

Equity to Dash Foundation

As this is a for profit business we accept that we should give something back to the Dash community (in addition to building important infrastructure to drive mainstream Dash adoption) in return for funding. For every month of funding we receive we’ll be offering 5% of the business to the Dash foundation (total of 15% should we receive funding for all 3 months).

It has been suggested that we give the equity and associated (future) dividends straight back to the network. At this stage we see no technical or legal framework for doing so. We will encourage the Dash foundation to gift the equity to the network if it becomes technologically and legally feasible at some point in the future.

Pre-proposal consultation

Prior to submitting this proposal to the network we engaged in discussion on DahTalk.org with members of the community to help understand any concerns they have and potential ideas that could be incorporated into the proposal or product.

Dash business development head Daniel Diaz (DashTalk username ‘Minotaur’) commented:

“I think this is a good project, it is well aligned with our overall goals of facilitating access to the Dash economy and more importantly it would very quickly lead to Dart payments cold calling and selling merchants on accepting Dash. I think we should support initiatives like this that are directed at bringing new businesses into the Dash economy in a very direct way with the possibility of having short term results. This is outward facing and should result in growth, for the modest amount of 1200 DASH over 3 months, I think is something we should all support."

How the system works

After a merchant integrates Dart Payments into their site customers will see a "Pay with Dash" button in the checkout. When clicked information about the transaction is sent from the merchant to our database and a payment window/popup appears. Once we receive payment of the Dash to our wallet we send confirmation back to the merchant that it has been
paid.

On the back end we instantly convert the Dash into fiat currency (using BTC as an intermediary until there is a DASH to fiat exchange with enough volume). Daily deposits of fiat will be made to the merchant’s bank
account.

Revenue

We expect to charge a flat 1% fee to all merchants. We will likely offer the first $X of transactions fee free to encourage merchants to sign up. There is also the possibility of tweaking our conversion system to make gains on exchange rate movements.  

Who are we?

Long time cryptocurrency enthusiasts with a keen interest in Dash since early 2014. 

Henry McKay - Commerce student at Monash University in Melbourne Australia. Currently working in Christchurch, New Zealand over the summer. Finance lead for rLoop (SpaceX Hyperloop Pod Competition entrant).

Angus McKay - Recently Completed a diploma of web development. Currently working on various personal projects.

There’s not much available online about us, and we value our privacy (like many Dash users). A couple of trusted community members have verified that we are long time Dash users.

Show full description ...

Discussion: Should we fund this proposal?

Submit comment
 
0 points,1 year ago
Congratulations Henry MacKay of team rLoop!
https://www.reddit.com/r/videos/comments/49gbf5/an_underdog_group_of_redditors_is_now_the_only/
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0 points,1 year ago
Thanks, the Indigogo campaign going pretty well so far.
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0 points,1 year ago
I was surprised that my son knows of the rloop project. I shouldn't be, but what a small world, eh?
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0 points,1 year ago
So you're also part of that team? Congratulations.
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0 points,1 year ago
Relative to the guys working on the technical side my role is fairly minor. With the money coming from the Indigogo campaign I should have a bit more to do soon, but not so much that it'll get in the way of this project.
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0 points,1 year ago
I just found this blog on opening a bank account in the USA as a foreigner. Maybe it's helpful? http://bkpk.me/how-to-open-a-us-bank-account-as-a-tourist/
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0 points,1 year ago
Thanks. There are a few paths we're currently exploring.
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1 point,1 year ago
congratz, looks like your budget proposal passed after all (12%) and will be paid out with next superblock 7th march 2016
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1 point,1 year ago
http://dashvotetracker.com/
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1 point,1 year ago
http://forklog.net/lead-developer-of-dash-believes-users-will-have-to-seek-a-bitcoin-alternative/

[quote]Another important implication of the meeting, Duffield believes, is realization of importance and necessity of creating fiat gateways for Dash. Availability of specific gateways will facilitate usage of the cryptocurrency for people, he supposes.[/quote]

I'm not telling anyone how to vote as i believe thats everyone's personal responsebility but i do want to emphasize this is an important topic and voting on this proposal is important.

There is still some four weeks to go before voting time expires, so pls vote in that time frame.
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0 points,1 year ago
Hi This is Ed Moncada a board member of the Dash foundation.

This proposal has in no way shown what I feel is the minimum of what we expect from any business we are considering funding. There is no seasoned management, no documentation as to what they plan to build or how they will execute, and have a very unrealistic idea as to what it will take to get this project off the ground. Given that, I highly advise all masternodes to vote NO on this project.
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0 points,1 year ago
strange that we have board members of the Dash Foundation fully for this proposal and board members
against it.
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1 point,1 year ago
How are you guys voting for this? Do you even know who these people are? Its going to be embarrassing as fuck if we get scammed.
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0 points,1 year ago
If you take a look at the bottom of the proposal you'll see some info. We are committed to being honest and transparent, and are looking forward to sharing our progress with the community.
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-1 point,1 year ago
Hi, do you have any experience running a (presumably international) payment processor? Converting cryptocurrencies to fiat and then sending bank transfers sounds easy, until you have to do it in the real world.
Is your business licensed and/or registered with the local financial services regulator? Do you have a banking partner already, and are they aware that you're a cryptocurrency payment processor?
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1 point,1 year ago
Thanks for the questions.

We do not have any specific experience operating a payment processor, but do have an in depth understanding of the challenges facing businesses in the cryptocurrency space.

We're not licensed with any regulatory authority at present, but will be taking adequate steps to comply with legal requirements. Banking is probably the most difficult part of the whole process. At this stage we believe it is a bit premature to be approaching banks.
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0 points,1 year ago
I recommend applying for an account at https://cryptocapital.co when you're ready.
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0 points,1 year ago
Thanks. We'll take a look at their services.
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1 point,1 year ago
This is one of the most important integrations to make Dash easy to sell and buy. I agree with the concept of a Dash-centric exchange. However, there are two concerns I have.

1. Are you qualified lawyers or have you experience in dealing with lawyers? An exchange like this will need to adhere to various local and international laws.
2. Are you security experts or do you plan to hire security experts? Exchanges are always targets for hackers. The last thing Dash needs is the headline 'Dash exchange is hacked and users lose millions'.

It sounds like you guys have great intentions. Can you confirm that you have plenty of industry experience with the full development life cycle? Please provide examples of your work.
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0 points,1 year ago
We're not an exchange as such, but rather a payment processor. Our service will simply sell Dash for fiat on already established exchanges with their own legal setups. We will still have to comply with some AML/KYC laws, but we will only be dealing with businesses not individual persons.

Security is important, and is certainly something we will be paying a lot of attention to. Due to the fact that we will be converting to fiat immediately after receiving Dash and transferring fiat to merchant bank accounts daily there will be almost no Dash held by us, and fiat will be in exchange and bank accounts for a limited time.
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0 points,1 year ago
I decided to review the "Dash v13 ­ Evolution ­ Design Overview" at https://www.dash.org/binaries/evo/DashPaper-v13-v1.pdf to see if "Dash to Fiat Conversion" was contemplated there as I suspected, and indeed on Page 12 there is the following paragraph:

"5.1 Fiat Conversion
Dash Evolution will also give users the ability to convert to and from fiat using using converters.
These are special users that provide another service for the network and are paid a percentage
of the transaction to process it. Converters will be rated by users who do business with them,
and this reputation will be crucial in helping other users decide which converters are most
reliable and trustworthy. The result will be a safe and global fiat conversion network."

So, this proposal is somehow duplicating efforts with Evolution's roadmap
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2 points,1 year ago
Dash 2016 Roadmap

https://dashtalk.org/threads/dash-2016-roadmap.8068/

[quote]
3.Business Development â—¦Improve fiat access to Dash tokens:â—¾Develop high-quality partners for exchange services, market making, and brokerage to improve market liquidity and access
â—¾Alternatively, start our own exchange services if proper partners are not found[/quote]
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2 points,1 year ago
We're looking to support all of the innovative features of Dash including Evolution. I've been in contact with Daniel Diaz and he's confident that at Dash to Fiat payment processor fits in well with the business development roadmap.
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0 points,1 year ago
Budget proposal amount : 400 Dash
"Will not be paid with next budget. This proposal exceeds the remaining unallocated budget of 399 DASH!"

Looks like you have two options :

1 : proceed and have it paid by the superblocks in april and may 2016 (total 800 Dash) and then create another budget proposal for the missing 400 Dash in june 2016

2 : ask us to downvote this one and create a new one with the correct budget amount (399 / 398 Dash) for three months.
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0 points,1 year ago
To avoid confusion we're going with 1.
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0 points,1 year ago
good, will give you guys some time to gather support as well.
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0 points,1 year ago
Also, isn't there a possibility that there will be more funds available due to fees not being included in the estimated available? Hopefully this will go through NP
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0 points,1 year ago
Possibly. I'm not sure how DashWhale is calculating the amount available in the budget.
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0 points,1 year ago
Yes. We've just past 10%, but more yes votes would certainly help.
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0 points,1 year ago
Is it a good idea for DASH to fund private businesses based on a promise of future returns?
IMHO : No
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1 point,1 year ago
Our main offer here is that by creating a first class dash to fiat payment gateway we will increase the utility of Dash, and therefore increase the price (which will benefit al holders).
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0 points,1 year ago
I have no idea if they can do this so easily, but the need is great, so if this works, even if it is private, as I now see it needs to be (being that you have to interface with the banking system) Frankly, Coinbase made Bitcoin usable, period. If these guys can actually make this work, it'd be quite a breakthrough. I wonder if I can find the beginnings of Coinbase in articles to see how big they were in the beginning and what kind of plan/execution they had :)
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1 point,1 year ago
These things where much easier to start-up several years ago before regulations. At least in the USA. Now you have to have all of the KYC rules and NY bitlicense forced upon crypto which requires substantial upfront capital investments.
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0 points,1 year ago
True, but that's why these guys only want to interface with established businesses (presumably with business licenses etc...) which minimizes and simplifies things.
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3 points,1 year ago
Voted yes as i think its important for Dash to have an exclusive Dash to Fiat payment processor
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0 points,1 year ago
Isn't this type of e-commerce functionality part of Dash Evolution's roadmap ?
I will not vote on this issue until I know for sure this is not duplicating efforts with Evolution development.
Somebody please explain.
Thanks
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1 point,1 year ago
Evolution does not include conversion of Dash to fiat. Many merchants do not want to hold Dash due to price volatility.

We will be including Evolution support in the Dart Payments gateway once Evolution is more developed.
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3 points,1 year ago
Taking the initiative to draw businesses into the Dash ecosystem should be an important part of our long term strategy. You are making this effort, and have a good plan. I'm supporting this.
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0 points,1 year ago
I mean it would obviously be a better and less 'risky" investment than some other things I will not name here. I say why the hell not, they did their homework and this could be the beginning of a flood of business ideas coming forth in this fashion.
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