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Pisto Net design.txt
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Pisto.Net
Empowering Merchants and remittances without the need of reliable Internet.
* Introduction:
Bitcoins per nature requires access to internet as it needs to register the
transactions in the blockchain.
7 out of 10 people in Rural areas in El Salvador do not have Internet,
as the service is not reliable or they are not subscribed to a
data plan.
Store owners can have Wifi and afford a data plan but are unlikely to share it
with the customers.
PISTO.NET is designed to enable people in rural areas to take advantage of bitcoin payments
even if they don't have reliable internet, improving the business of local merchants and
presenting a new option for sending remittances from USA.
The proposed solution involves a hibrid payment system using virtual prepaid accounts hosted
in the Open Bank Project, The accounts are similar to Gift Cards. The merchants issues the
prepaid accounts at the point of sale and gives them to customers as part of promotions,
special offers, or just selling them. The accounts can be printed in thermal paper,
preprinted as business cards, or sent via SMS. The customers save the accounts in the phone and
share them with family and friends. They can load them with Bitcoins, and use them to pay only
at the store that issued the accounts. The Accounts are denominated in USD to avoid
price volatility, but technically can be in bitcoins.
The system includes two Android App, one is the merchant app (PISTO.POS) that issues and redeem the prepaid
accounts, and the second is the Customer App (Pisto.APP). The system also includes a back end
app that runds BTCPAY for accepting bitcoins and updating the account balances.
USE CASES:
* Issuing prepaid accounts
The system is hosted in Open Bank System, a new bank named PISTO.NET is created
and holds the funds of the accounts. When a merchant issues a prepaid account, it makes a load and
transfer funds from the merchant account to the prepaid account, receiving the payment from the
customer if they buy the prepaid card, or when their relatives reload the card using Bitcoins.
* Sharing prepaid accounts
The system is designed to enable sharing the prepaid account with family and friends, for example
the parents working in the city can share a copy of the preaid account to their kids or care takers,
and they can use as payment at the merchant locations. The parent can reload the account remotely
even if the kids have no internet.
* Remittances
The system is designed to enable sharing the prepaid account with relative in USA. Relatives can load
funds using Bitcoins, and the funds are credited in the customer's prepaid accout and deposited in the merchant's
account. The merchant in El Salvador has the option
to convert to USD using the existing channels.
* Redeeming prepaid accounts
Customers use the prepaid account at payment by presenting the card in a QR-code format,
since the card is stored in the phone in graphic format, it does not need to have internet available,
and since it can only be used at the merchant location and for a limited amount, the risk of fraud is low.
Merchant enter the amount to pay in their phone and scans the QR-code, it connects to the server
and ask to redeem the payment. The communication between the Merchant and the Open Bank Project system
can be done via internet or via encrypted text message and a gateway.
The funds are moved from the card account to the merchant account, and the sistem issues a receipt.
Optionally the system can send a text message to the customer and merchant as confirmation of the payment.
* Checking Balance
Customers can check the balance from the mobile app or asking the merchant to scan the QR-code and
sending a balance check command.
* Reloading the Prepaid Account.
Customers can reload their account using cash bitcoin or bank cards at the merchant location
or using Bitcoin from the customer mobile app.
* Reloading with Bitcoins.
Customers use the mobile app to select the prepaid account they want to load and the amount. The system will
open an Bitcoin Invoice and process the payment (Implemented using BTCPAY) and the funds are deposited in the
merchant account. The system receives a notification to transfer funds from the merchant's reference account
to the customer prepaid account.
* Trasaction Reports.
The POS terminal generates reports offline (at the terminal) or can request to obtain reports from the
server
* Featured Businesses
The Customer App (Pisto.App) has a list of featured merchant locations such as groceries stores, fast food, gas
station, farmacies and other coorporate locations.
* Local Businesses
The Customer App (Pisto.App) has an option to scan and save the prepaid account of local businesses,
and enables to check balance, reload, share.