PumaPay intends to migrate from the Ethereum blockchain for the more scalable Binance Smart Chain (BNC). Announcing the upcoming launch of its V3.0, the comprehensive payment provider, intends to bridge the two networks.
Speaking during the announcement, PumaPay CEO Yoav Dror said,
“We are excited for the new V3.0 vision, our move to Binance Smart Chain, and the latest upgrades that we can offer to merchants who use our payment solution.”
Benefits of Binance smart Chain
The migration of PumaPay from the Ethereum network to BNC is a first of its kind. It will provide token diversity to PumaPay customers. They can now select a settlement currency to suit any billing model they encounter. The migration will also provide liquidity pools that will facilitate swaps between PumaPay’s native token, PMA, and other cryptocurrencies.
In addition, the new arrangement will see token transaction processing fees transferred to executors, thereby fostering decentralization. The merchants will be responsible for running executor nodes, thereby saving on network fees while also earning from processing tractions for other merchants. Above all, PumaPay V3.0 will initiate measures that will spur community participation in promoting the project.
Why the migration?
Ethereum has long been an industry-leading blockchain for developers to launch their fintech but due to scalability issues, it is now getting competition from other blockchains. Notably, networks such as Cardano, EOS, Polkadot, and Ton are proving to be formidable competitors for Ethereum. Their value propositions prove to be well-grounded if they can only attract a substantial user base.
Also, Ethereum’s slow block processing rate and mounting gas fees have made it unsuitable, especially for PumaPay’s operating model. That is why the payment solutions provider opted to use the BSC network to achieve its prior goal of decentralization, providing payment flexibility, and offering liquidity.
“With our new liquidity pools, bridge, and decentralization model, we believe PumaPay is creating, as the first crypto payment solution on BSC, a model system for others to follow should they opt to shift from Ethereum to Binance,” said Dror.
Unlike other P2P systems of crypto payments that use the push protocol, PumaPay uses the PullPayment Protocol that allows merchants to initiate recurring billing. Actually, it is currently the only payment solution on BSC that offers this solution.
Ultimately, PumaPay envisages that the new platform on Binance will offer opportunities to customers and users on the Binance Smart Chain, in addition to faster transaction speeds and cheaper gas fees.