Thanks to blockchain technology, Yosemite X, Palo Alto-based fintech company’s has just released a Yosemite Card, where merchants will be charged 0.1 percent of every $10,000 in transaction volume, with a cap of 0.3 percent.
“We wanted to utilize blockchain technology to create a seamless transaction between parties and eliminate the middleman,” Mr. Jin said.
Existing blockchain technologies didn’t meet Yosemite X’s scalability needs so they created their own semi-public blockchain with a potential capability of millions of transactions per second (TPS). Existing card companies TPS top out at a much lower total.
The Yosemite Card eliminates the intermediaries such as payment company, credit card company and card network and settles payment between retailer and customer via a blockchain transaction ledger. Payment is collected in digital fiat tokens equal to the charge amount and converted back at the other end.
“Facilitators charge fees of two to five percent,” Mr. Jin said. “Yosemite Card is able to bypass that requirement so we can offer a significantly lower transaction fee.”
When blockchain technology debuted it was basic in its capability but as it developed, so did its potential to change the industry landscape, Mr. Jin said.
“It connects users so they can interact directly with each other and not have to go through a centralized entity such as Visa or MasterCard. The possibilities of what it could create are endless.”
Yosemite X will take their time with rolling out Yosemite Card, Mr.Jin said. They will concentrate around UC Berkeley and other college towns where there is a concentration of merchants employing it. Those merchants will attract students who will in turn attract more merchants.