Crunchfish’s patent pending frictionless mobile payments while offline is built around an offline balance that is stored locally in the mobile payment app. Crunchfish now enables the offline balance, here referred to as digital cash, to be used as the default means of payment across all real-time mobile payments. Using this new standard, the confirmation of online bank account balance, which today is standard for every real-time payment, would only be necessary if the payer has insufficient digital cash.
With this approach, online signalling is significantly reduced. When real-time mobile payments are able to primarily be verified locally, there is no need for online authorisation at the moment of payment, assuming there is enough digital cash available. Thus, the transaction time is also sped up due to it being verified locally, without the need to be online. The separation between locally authorised offline transaction and the subsequent online settlement allows for the payer to remain anonymous even with digital payments, mimicking traditional cash transactions and allowing for better privacy protection for consumers.
As the use of cash decreases in our societies, central banks in Sweden and other countries are exploring options to complement traditional cash by digital e-currencies, such as the Swedish e-krona. There are two complementary methods being explored, the first is a ledger-based e-currency, where every transaction is recorded in a centrally held accounting system based on the blockchain and, the second, a value-based e-currency. Traditional cash is a value-based payment method, and in order for e-currency to meet the same standards it would need to support two key criteria, the ability for the payer to remain anonymous and offline functionality. Crunchfish’s patent-pending offline frictionless mobile payments with digital cash meets both of these criteria and is therefore a potential means for facilitating the creation of value-based digital currencies, like the e-krona.
In the not-so-distant future, mobile phones will be our personal ATMs, through which we can withdraw digital cash whenever we have an online connection. There will be no more need to find a physical ATM; with Crunchfish’s technology, that same withdrawal ability will simply reside in your pocket. Crunchfish also has a patent-pending for automatic withdrawals or deposits of digital cash, enabling the user to always have the amount of digital cash they require. Each time the user is online, the digital cash is automatically moved to or from the user’s bank account to match the amount the user wishes to always have access to in their mobile payments app.
For more information, please contact:
Joachim Samuelsson, Chairman and Head of IP, Crunchfish
+46 708 46 47 88
Joakim Nydemark, CEO Crunchfish
+46 706 35 16 09
Link to original press release in Swedish: https://www.crunchfish.com/investors/pressmeddelanden/crunchfish-mojliggor-digitala-kontanter-som-default-betalmedel-vid-mobil-realtidsbetalning/