Latest / The Paul Barron Crypto Show / Kid Solves $1 Trillion Problem with XRP?🔥Point-of-Sale Fees🔥

Transcript

Kid Solves $1 Trillion Problem with XRP?🔥Point-of-Sale Fees🔥 · The Paul Barron Crypto Show

• 0:05
  Speaker 1: Has XRP solved a trillion dollar problem in the retail market.
• 0:10
  Speaker 1: Today we're going to find out. My name is Paul Barrow,
• 0:12
  Speaker 1: Welcome back into tech path. Let me get started. We're
• 0:14
  Speaker 1: going to be doing a deep dive here on how
• 0:16
  Speaker 1: point of sale works across the globe. Everybody uses this
• 0:19
  Speaker 1: on a daily basis. You're gonna want to listen to
• 0:22
  Speaker 1: this one. I do want to thank our sponsor, and
• 0:23
  Speaker 1: that is Uphold. This is a great place to get
• 0:25
  Speaker 1: started on your crypto journey. And the cool thing about
• 0:27
  Speaker 1: Uphole is that you can do this very simply, very
• 0:30
  Speaker 1: easy to sign up, and they have a ton of
• 0:33
  Speaker 1: crypto projects that come online and they give you almost
• 0:36
  Speaker 1: like a little bit of an early teaser on these projects,
• 0:39
  Speaker 1: and that is a benefit in the market. So I
• 0:42
  Speaker 1: have to do is join Uphold. Use our link down below.
• 0:45
  Speaker 1: You're gonna get some special offers to get started. So
• 0:47
  Speaker 1: that's a good one to check out. All right, Let's
• 0:49
  Speaker 1: go over to a couple of things I want to
• 0:51
  Speaker 1: talk on today. Average credit card processing fees right now
• 0:54
  Speaker 1: in cost and just in twenty twenty four, But when
• 0:57
  Speaker 1: you look at this, there's a lot of ways that
• 1:00
  Speaker 1: credit card fees are initiated. And I've been in retail
• 1:03
  Speaker 1: for a long time and have worked in the restaurant
• 1:06
  Speaker 1: space in technology side, so we've been analyzing this for
• 1:10
  Speaker 1: a long time of really understanding where these fees come from.
• 1:13
  Speaker 1: Swipe fees surged on us family, So these are fees
• 1:16
  Speaker 1: that a family will pay when a retailer won't or
• 1:20
  Speaker 1: can't pay them, so they get transcended over to a
• 1:23
  Speaker 1: retail consumer. Then you get into the actual credit card
• 1:27
  Speaker 1: company fees, which is right now in twenty twenty three
• 1:29
  Speaker 1: about one hundred and thirty five billion just in the
• 1:32
  Speaker 1: United States. That's not in conjunction with the fees that
• 1:36
  Speaker 1: are paid over on the retail site. So as you
• 1:37
  Speaker 1: can see a lot of fees coming in on this,
• 1:40
  Speaker 1: I want to play a clip for you. This shows
• 1:41
  Speaker 1: the lineage of point of sale that I've been investigating
• 1:45
  Speaker 1: for decades. Literally have been looking this for a long time.
• 1:49
  Speaker 1: Let's go to that clip. You got to go through
• 1:52
  Speaker 1: these things like this and hopefully it's tying directly into
• 1:56
  Speaker 1: your point of sale system. That's the big challenge of
• 1:59
  Speaker 1: the industry. It's one that it really hurts. Right now,
• 2:01
  Speaker 1: you've got an under ten dollars item. Even under a
• 2:03
  Speaker 1: dollar item, that's when fees really start to pile up.
• 2:06
  Speaker 1: So strip fees pretty simple, one dollar fifty two cents
• 2:09
  Speaker 1: of a dollar because of the transaction fee, then the
• 2:12
  Speaker 1: percentage that they take. So explain to me on the
• 2:16
  Speaker 1: pos side, just because there's let's say, quote middlemen, that's
• 2:19
  Speaker 1: not necessarily bad if we could do it at a
• 2:21
  Speaker 1: rate that's you know, ten percent or less. And that's
• 2:24
  Speaker 1: what we're really going towards. We are charging kind of
• 2:28
  Speaker 1: comparable fees and I would say even lower. Where does
• 2:33
  Speaker 1: Sunday make money right now? To launch?
• 2:35
  Speaker 2: We're offering it for free. We built pricing based on
• 2:38
  Speaker 2: what most restaurants are paying as a pain of processing fee.
• 2:42
  Speaker 1: Well, we're looking at differently.
• 2:43
  Speaker 2: We are not calculating on their you know, order volume,
• 2:46
  Speaker 2: but really on the number of orders they.
• 2:49
  Speaker 1: Do forty orders a day. Well, in that case, you're
• 2:52
  Speaker 1: going to be at sixty nine dollars. You guys, you've
• 2:55
  Speaker 1: probably unvers did something that was kind of unique in
• 2:58
  Speaker 1: the sense of developing your own point of sale.
• 3:01
  Speaker 3: It's the key to bird Call was to build proprietary
• 3:03
  Speaker 3: technology just for a bird Call that was focused on
• 3:06
  Speaker 3: solving par problems and not the problems of the industry.
• 3:09
  Speaker 1: All right, So as you can see, this has been
• 3:11
  Speaker 1: a long lineage of companies that are attacking this space,
• 3:14
  Speaker 1: and rightly so. I mean, you're talking about almost thirty
• 3:17
  Speaker 1: five trillion dollars a year that go through the retail
• 3:21
  Speaker 1: sales system. This is in all countries, and the big
• 3:25
  Speaker 1: boys get a slice of that. And when you look
• 3:27
  Speaker 1: at the crypto side of thing, which is really the
• 3:30
  Speaker 1: kind of the holy grail of what payments might look like.
• 3:32
  Speaker 1: These are the five best crypto point of sales that
• 3:35
  Speaker 1: are out there. Some of these we've talked to before.
• 3:37
  Speaker 1: We've had BitPay on. You've got coin gate in there,
• 3:39
  Speaker 1: coin crypto or coin or go crypto, and then now payments,
• 3:43
  Speaker 1: all of these with various fees that come across to this.
• 3:46
  Speaker 1: You even go into some of these projects that even
• 3:49
  Speaker 1: start to stack fees. So this is where you have
• 3:51
  Speaker 1: a transaction fee, but then a fixed fee. So that
• 3:54
  Speaker 1: doesn't really work for you know, high volume transactions like
• 3:57
  Speaker 1: a Starbucks or somewhere like that. Even a small, well,
• 4:00
  Speaker 1: you know, ticket item like maybe you know a part
• 4:02
  Speaker 1: of a McDonald's order, something about nature. You've got that
• 4:05
  Speaker 1: and then of course, you've got to look at some
• 4:07
  Speaker 1: of the emerging tech that it's happening here in crypto
• 4:10
  Speaker 1: today there's block pos the lowest fees in the markets,
• 4:13
  Speaker 1: even though they don't identify what those are. But when
• 4:15
  Speaker 1: you start to drill down a little bit, you start
• 4:17
  Speaker 1: to see where some of these fees go into, including
• 4:21
  Speaker 1: that you have to hold some of the bepay token
• 4:23
  Speaker 1: and still have a point and a half that you're
• 4:26
  Speaker 1: playing on deposit fees, then withdrawal fees. You get the point. Guys,
• 4:30
  Speaker 1: we're talking about a lot of money that is going
• 4:33
  Speaker 1: through a system that is still legacy overall. And the
• 4:37
  Speaker 1: thing I think that's really going to change it was
• 4:39
  Speaker 1: that I thought Crypto this is the solution that's going
• 4:42
  Speaker 1: to happen. We thought it would be Solana. I felt
• 4:45
  Speaker 1: like Solana was going to be the winner here. They
• 4:47
  Speaker 1: of course partner with Visa and have really tied into it.
• 4:51
  Speaker 1: They've kind of become a little bit more of a
• 4:53
  Speaker 1: Solana pay connection here you've got Salona Pay and Shopify connecting.
• 4:58
  Speaker 1: So again I love these statements near zero fees. What
• 5:01
  Speaker 1: this simply means is it's one to three percent when
• 5:05
  Speaker 1: you're doing multimillions of dollars a year in sales, which
• 5:08
  Speaker 1: most retail even just a small restaurant's doing a million
• 5:11
  Speaker 1: dollars a year. You get some restaurants or some retail
• 5:14
  Speaker 1: companies that are doing in excess of five million to
• 5:17
  Speaker 1: ten million dollars per location. Imagine what those fees are
• 5:21
  Speaker 1: against you. And at some point the consumer pays the
• 5:24
  Speaker 1: toll because prices will go up to offset that, even
• 5:27
  Speaker 1: if it's just a one or one and a half
• 5:28
  Speaker 1: percent price increase on menu items or retail items, all
• 5:32
  Speaker 1: of that is eventually absorbed into the system. Further into this,
• 5:36
  Speaker 1: you look at things like what Avalanche is doing, which
• 5:39
  Speaker 1: I am a big proponent on getting some kind of
• 5:42
  Speaker 1: crypto involved in credit card placement because I think this
• 5:45
  Speaker 1: is still a scenario that needs to probably go out
• 5:49
  Speaker 1: over time, and I think there will be kind of
• 5:51
  Speaker 1: not a transition period that is going to happen for
• 5:53
  Speaker 1: crypto to take this on. But here you have to
• 5:55
  Speaker 1: watch out for these things right here, and that is Visa.
• 5:58
  Speaker 1: If Visa is tied to it, most likely there's going
• 6:01
  Speaker 1: to be some fees somewhere that is essentially supporting that
• 6:04
  Speaker 1: network and that payment network. All right, so the only
• 6:07
  Speaker 1: thing that really exists in crypto out there is when
• 6:09
  Speaker 1: you think about decentralized payment is really the Bitcoin network
• 6:13
  Speaker 1: and the thing and problem with this that you run into.
• 6:16
  Speaker 1: Of course, you get into things around lightning, but you
• 6:18
  Speaker 1: also get into speed issues. If you understand that, we've
• 6:21
  Speaker 1: seen this on many videos out there of trying to
• 6:23
  Speaker 1: use bitcoin as a payment architecture. Bitcoin lightning bug is
• 6:27
  Speaker 1: now allowing remote theft of bitcoin and this is all
• 6:30
  Speaker 1: coming in via nodes. These are the problems that crypto
• 6:35
  Speaker 1: is dealing with, and I think the opportunity is pretty significant.
• 6:39
  Speaker 1: Polka Dot has gone this direction. This is one of
• 6:42
  Speaker 1: the worst projects out there in terms of a payment platform.
• 6:47
  Speaker 1: Let's play that real quick so you can kind of
• 6:48
  Speaker 1: see some of the things that I'm talking about.
• 6:50
  Speaker 3: Cela are funds loaded on the Polka Dot app.
• 6:54
  Speaker 1: Let's see how this goes.
• 6:56
  Speaker 3: Two Proni pizzas all send for it and how much
• 7:00
  Speaker 3: you say it was again seventeen forty four.
• 7:03
  Speaker 1: Seventeen forty four.
• 7:09
  Speaker 3: Already as a gift card. Yeah, sorry, I think we're good, maybe.
• 7:47
  Speaker 1: Awesome? Thank you you too. Okay, so you guys get
• 7:53
  Speaker 1: the deal. I like the ones steals, the pizza. This
• 7:57
  Speaker 1: is the problem, guys. This is the challenge that has
• 8:00
  Speaker 1: and it's one that is why the system is almost uncrackable.
• 8:04
  Speaker 1: You look at stable coins, this is going to happen.
• 8:06
  Speaker 1: We're going to see more and more stable and look
• 8:08
  Speaker 1: at the growth on just stable coins in general. Imagine
• 8:10
  Speaker 1: having stable coins in your wallet, being able to use
• 8:13
  Speaker 1: it as cash, and then having to be able to
• 8:15
  Speaker 1: transact on a blockchain system that's tied into this. This
• 8:19
  Speaker 1: is where Visa, MasterCard, Americ Express, all these companies are
• 8:22
  Speaker 1: frothing at the bid because they're going to get a
• 8:25
  Speaker 1: chance to take a part of that and transcend into
• 8:29
  Speaker 1: the next payment ecosystem that's out there, and that's going
• 8:32
  Speaker 1: to be the digital payment, which is going to come
• 8:34
  Speaker 1: on the blockchain at some point. With all that you had,
• 8:38
  Speaker 1: XRP and Ripple XRPL did a big packathon and this
• 8:43
  Speaker 1: was over there. Really it boiled down to a handful
• 8:45
  Speaker 1: of people that were trying to solve some of these problems.
• 8:49
  Speaker 1: And one of the guys that was going into it
• 8:51
  Speaker 1: was a young engineer. And these are the kind of people,
• 8:54
  Speaker 1: believe it or not, that write all the code for
• 8:56
  Speaker 1: most of the stuff. You're using out there in retail today.
• 9:00
  Speaker 1: Play a clip for you because this starts to open
• 9:02
  Speaker 1: up something that may be cracking the code for retail sales.
• 9:06
  Speaker 1: Take a look.
• 9:08
  Speaker 2: It's an XP wallets, same as Apple wallet, Google wallet,
• 9:11
  Speaker 2: but instead of these MasterCards, we are straight on the
• 9:14
  Speaker 2: XPO network. So let's do two cents this one continue
• 9:18
  Speaker 2: to payment, waiting payment with just tap, straight away process
• 9:22
  Speaker 2: in transaction, it's gone to the test net and as
• 9:27
  Speaker 2: seems it goes on chain, we'll get a little success
• 9:29
  Speaker 2: message done we tap here you can see it verified
• 9:34
  Speaker 2: on chain. Two cents.
• 9:36
  Speaker 1: Wow, that's that's crazy, all right. So as you can
• 9:40
  Speaker 1: see very small fractional transaction or micro transactions, this is
• 9:44
  Speaker 1: good for retail. It's especially good for the restaurant space.
• 9:48
  Speaker 1: Then you also look at the speed, not lightning compared
• 9:52
  Speaker 1: I think to maybe today's traditional rails. But likelihood is
• 9:56
  Speaker 1: that we'll see more advancement. Again, this is a very
• 9:59
  Speaker 1: early test night kind of model on how retail sales
• 10:02
  Speaker 1: can totally circumvent the model that's going out there today.
• 10:06
  Speaker 1: That could be a pretty significant way going forward. Here's
• 10:11
  Speaker 1: their website. This is Zeno de Finance. It's on a
• 10:14
  Speaker 1: wait list right now, but it's going to be interesting
• 10:16
  Speaker 1: to see if these guys can actually go to a
• 10:19
  Speaker 1: zero fee crypto payment with that. That would be a
• 10:24
  Speaker 1: major shift in the future of retail sales, and a
• 10:27
  Speaker 1: major shift because it's going to save a lot of
• 10:28
  Speaker 1: people a lot of money. That a white paper. Within
• 10:30
  Speaker 1: the white paper there's a lot of points that he
• 10:33
  Speaker 1: hits on here that I think are interesting multi currency.
• 10:36
  Speaker 1: This is rl USD at launch plus XRP and also
• 10:40
  Speaker 1: XRPL based token, so this could be memes, other things
• 10:43
  Speaker 1: that would automatically transact and be able to give you
• 10:47
  Speaker 1: rl USD or possibly in the future other stable coins
• 10:51
  Speaker 1: directly to that retailer. Further into the white paper right here,
• 10:55
  Speaker 1: high throughput fifteen hundred cps, low transaction costs fractions of
• 11:00
  Speaker 1: a cent, big deal. And then you go into scenarios
• 11:04
  Speaker 1: going forward. It enables merchants to cover the XRP gas
• 11:07
  Speaker 1: So imagine if a merchant said, we're going to give
• 11:09
  Speaker 1: you free gas fees if you're paying with crypto, We're
• 11:13
  Speaker 1: going to do some kind of bonus that's going to
• 11:14
  Speaker 1: give you additional benefits at our retail. All those kind
• 11:17
  Speaker 1: of things can happen, all right, so you ask, well,
• 11:20
  Speaker 1: if there's no fees, then how would Zeno or any
• 11:24
  Speaker 1: company that's trying to do this make money. Well, the
• 11:26
  Speaker 1: key is right here. It's in app conversions of the
• 11:28
  Speaker 1: rl USD to the XRP token. And it's just like
• 11:31
  Speaker 1: this when you look at because this isn't really being
• 11:34
  Speaker 1: done today because we're operating on the US dollar system.
• 11:36
  Speaker 1: But when you get into in app conversions, that spread
• 11:40
  Speaker 1: alone can generate a certain amount of fee based on
• 11:43
  Speaker 1: market conditions. So that's the opportunity I think that's going
• 11:46
  Speaker 1: to open up here. They're also going to look at
• 11:48
  Speaker 1: a program this is number seven I think, yeah, tokenized
• 11:50
  Speaker 1: consumer incentives. So this is a pay to earn cash back.
• 11:52
  Speaker 1: So this would be paying you the customer, the retailer,
• 11:56
  Speaker 1: or the retail consumer to use the system. So this
• 12:00
  Speaker 1: is where you could get into adoption. An adoption curve
• 12:03
  Speaker 1: will be significant. Now, the argument that I will have,
• 12:05
  Speaker 1: and I've had with my own research team on this
• 12:08
  Speaker 1: very topic, is that you've got such a behemoth of
• 12:11
  Speaker 1: a market out there. To get adoption, you're going to
• 12:14
  Speaker 1: have to have a pretty significant hit in the marketplace,
• 12:18
  Speaker 1: or a major retailer that says I want to do
• 12:20
  Speaker 1: it for zero fees. Those are the factors that I
• 12:22
  Speaker 1: think will play into this. So they're going to get
• 12:24
  Speaker 1: ready to go at the APEX event happening up here
• 12:27
  Speaker 1: in June. This is going to do live demos this
• 12:29
  Speaker 1: I think it's Singapore, but this is going to get
• 12:31
  Speaker 1: feedback on this, and most likely we'll see a slew
• 12:35
  Speaker 1: of innovation coming into this tech, which means we're probably
• 12:40
  Speaker 1: going to see a lot more tech starting to transition,
• 12:42
  Speaker 1: maybe even on other chains as well. Further, I want
• 12:45
  Speaker 1: to kind of just devalidate this because many people will say, well,
• 12:48
  Speaker 1: Paul Nothings, you can't be as fast as Visa. Well,
• 12:51
  Speaker 1: right now, Visa process is around seventeen hundred transactions per second,
• 12:54
  Speaker 1: so that's reasonable and when you look at that in
• 12:57
  Speaker 1: comparison to what we're seeing on blockchain, yeah, it's a aile.
• 13:00
  Speaker 1: You've got it. Other things that you look at are
• 13:03
  Speaker 1: the hardware platforms that are out there. This is JP
• 13:05
  Speaker 1: Morgan and their own POS platform, and this is interesting
• 13:09
  Speaker 1: because they're starting to transition in the equipment to retailers
• 13:15
  Speaker 1: for the fees, because that's really where the money is going.
• 13:18
  Speaker 1: It's kind of think of it like an HP printer.
• 13:19
  Speaker 1: You buy the printer for almost nothing, but you pay
• 13:22
  Speaker 1: forever on those damn cartridges. That's the kind of thing
• 13:25
  Speaker 1: that's happening on these fees. So all of this is
• 13:28
  Speaker 1: brewing up into what I think is going to be
• 13:31
  Speaker 1: a huge opportunity for crypto. One other note is Ethereum.
• 13:35
  Speaker 1: And if you saw in that beginning of that clip,
• 13:38
  Speaker 1: I had interviewed a CEO of a company that was
• 13:41
  Speaker 1: building their own point of sale. They had a good idea,
• 13:43
  Speaker 1: and the idea of running your own point of sale
• 13:46
  Speaker 1: system and your own node is a good idea if
• 13:49
  Speaker 1: you have a system to do it. Metallic and Ethereum
• 13:53
  Speaker 1: might have that. Now this could be the future because
• 13:55
  Speaker 1: this is a decentralized Ethereum light node. Think of this
• 13:58
  Speaker 1: as a light client trying to get to the point
• 14:01
  Speaker 1: where you could run one of these on your phone.
• 14:03
  Speaker 1: If that gets to reality, then again we are talking
• 14:07
  Speaker 1: about a disruption level event in retail sales, which is
• 14:11
  Speaker 1: about a trillion dollars in fees a year, affecting almost
• 14:16
  Speaker 1: today almost thirty five trillion in overall revenue. So you
• 14:20
  Speaker 1: can kind of see how big of a market this
• 14:23
  Speaker 1: is and why it matters so much, and it doesn't
• 14:26
  Speaker 1: stop there. You've got these smaller pos This is the
• 14:29
  Speaker 1: DJ one again. This is the potential where you can
• 14:32
  Speaker 1: have a whole pos En node in your palm of
• 14:35
  Speaker 1: your hand. Imagine if you're a retailer you could do that.
• 14:37
  Speaker 1: That would be unbelievable. Going forward, you got to take
• 14:40
  Speaker 1: a look at gas fees. They continue to decline. Ethereum
• 14:43
  Speaker 1: has kind of put a mantra into lower fees to
• 14:46
  Speaker 1: be able to get more transactions on ether. That will
• 14:49
  Speaker 1: be a benefit as well. Last point here is if
• 14:52
  Speaker 1: you just look at layer twos, this is just showing
• 14:55
  Speaker 1: the capacity of what these things can do in terms
• 14:58
  Speaker 1: of their tps. And I'll zoom in that right there.
• 15:01
  Speaker 1: These are crazy numbers. So the point is the capacity
• 15:04
  Speaker 1: is there. We're starting to see breakthroughs in what's going
• 15:08
  Speaker 1: on on XRPL. I like this idea of what this
• 15:12
  Speaker 1: young engineer has been able to do, and if they're
• 15:15
  Speaker 1: capable of getting through to a true zero fees system
• 15:20
  Speaker 1: for point of sale, it won't be long before retailers
• 15:23
  Speaker 1: are starting to jump onto this. So watch this one
• 15:26
  Speaker 1: very closely, guys. XRP could be right at the epicenter
• 15:30
  Speaker 1: of a new payment system starting to sweep the lands
• 15:32
  Speaker 1: in point of sale. Remember when credit card systems first
• 15:35
  Speaker 1: came up, or Apple Pay and things like that. I
• 15:37
  Speaker 1: want you to think of it in the same way.
• 15:39
  Speaker 1: If you're not subscribe, make sure and do that. Get
• 15:41
  Speaker 1: in on the Diamond Circle. It's a great place to
• 15:42
  Speaker 1: get additional content. And follow me on x at Paul Baron.
• 15:47
  Speaker 1: We'll catch you next time right here on tech Path