London-based micropayment platform pingNpay to debut in 2022

By Gaia Lamperti

Blockchain-based micropayment network pingNpay announced it move out of stealth mode and that its global payment network will be operational in 2022.

pingNPay seeks to create a new category of high frequency, low-value payments, as part of a shift toward Web 3.0. The network will focus on “high frequency” payments below $20 per transaction targeting the UK in its initial phase by using a digital coin “backed by the pound” and with its total fees on transactions not exceeding 1%, the company states.

Fees will be paid in real-time at the point of transaction and distributed among the software provider of wallets, which also offer custody of wallets/funds, and pingNpay as the network provider which facilitates the operation of the underlying transaction. The micropayment service will support both offline as well as online transfers and be convenient for smaller transactions.

Eventually, pingNPay plans to create stablecoins, backed entirely by fiat, for each country where it will provide services, so that consumers and merchants will see payments and balances in their local currency.

Some industry experts believe that stablecoins are more akin to a new set of payment rails with unique characteristics. Meanwhile, certain public officials think that more regulation of stablecoins is needed as usage increases. Yet, the company says it will publish proof of reserves to meet any regulatory requirements.

pingNPay was founded by Richard Bell and Jeremy Light, two former executives at Ripple, the Silicon Valley company building a global cross-border payments network using blockchain technology.

“In a world where micropayments are becoming common place, retailers are still finding monetising digital grazing a challenge, and many potential services they could offer have yet to see the light of day,” explained Richard Bell, Founder of pingNPay. “No one has yet to crack the sub-$20 digital payment market. The major card networks can process tens of thousands of payments per second, but even so, the cheapest debit card payments cost retailers at least 20p per payment, which represents 20% of a £1 payment. pingNpay solves this problem and will unleash a new wave of e-commerce innovation for consumers and the next stage of the internet’s evolution, Web 3.0.”

Bell previously worked at Visa, Santander and Vodafone, while Light led Accenture’s payment consulting business in Europe, advising some of the biggest banks and processors in the sector.

The company chose to launch in the UK “because of the country’s strong FinTech ecosystem and forward-thinking regulatory environment,” it stated in an announcement. The UK online subscriptions have created a market opportunity, as it is fast growing with around £11 billion anticipated to be held in digital wallets forecast to account for online spending by 2026.