Fluidity Launches Cashback on Crypto Payment App Request FinanceExternal - Press Release
By: Chainwire •External PR
Adelaide, Australia, 22nd March, 2023, Chainwire
About the program
The cashback program lets businesses reward customers who pay in crypto. Merchants also stand to earn cashback rewards when they accept crypto payments. Each time a payment is made in the app, both sender and recipient stand to earn stablecoins. The rewards will be randomly distributed into their wallets after each payment.
For instance, a smart contract audit firm, and their client can both earn cashback rewards when their audit client pays their invoice in Request Finance – using a Fluidity-wrapped stablecoin. Depending on the volume of payments being made throughout the entire program, cashback rewards can range from a few cents, to as much as hundreds of dollars per transaction.
The cashback rewards are currently paid out in stablecoins. However, Fluidity Money has plans to expand its offering to other loyalty programs, which could see other types of rewards like non-fungible tokens (NFTs) being disbursed in the future.
Depending on what the NFTs represent, it could allow crypto payment apps like Request Finance to offer rewards ranging from tickets to token-gated experiences, merchant credits like air miles, digital collectibles, and more.
“Request Finance helps thousands of enterprise teams and DAOs use stablecoins easily. We wanted to work with them to introduce this cashback program as a fun way of rewarding people for using stablecoins for payments”, said Shahmeer Chaudhry, CEO at Fluidity Money.
“Cashback and loyalty reward programs have proven incredibly effective at driving the adoption of Web2 digital payments. Google Pay’s 2019 #StampwaliDiwali campaign in India, and the 2022 Huat Pals campaign in Singapore are great examples of this. We believe that a similar strategy can help to drive the adoption of crypto payments”, said Vijay Garg, Founder at MapleBlock Capital.
Not your usual crypto cashback
Cashback rewards are not new in crypto. However, many of these cashback programs are often tied to credit cards, which typically finance loyalty reward programs through high interchange fees which merchants pass on to consumers, and extortionate overdraft interest rates ranging from about 15% to 27%. In addition, the seemingly attractive crypto cashback rates advertised on these cards are often due to the fact that the rewards are paid out in highly volatile tokens.
In contrast, Fluidity Money provides crypto payment apps like Request Finance, a novel way of financing rewards that pays out in stablecoins, and does not impose high fees on merchants, or egregious interest rates on consumers.
How it works
Fluidity Money’s wrapped stablecoins, or “Fluid Assets”, can be obtained by depositing stablecoins like USDC, and USDT into the Fluidity Webapp. Wrapping the stablecoins via Fluidity Money, is key to how the cashback rewards are generated. To mint a Fluidity stablecoin, an equivalent amount of that specific stablecoin like USDC or USDT, must be deposited into a smart contract, audited by Bramah Systems.
The deposited stablecoins are then lent out to other DeFi protocols such as Compound. Eighty percent of the yield generated is used to finance the cashback rewards. As more people use Fluidity Money’s wrapped stablecoins, the larger the cashback payouts will be.
About Fluidity Money
Fluidity Money is creating the blockchain incentive layer by rewarding people for using their crypto through a novel yield-generating mechanism. Fluid Assets are pegged 1:1 to traditional stablecoins and can be embedded into any platform, protocol or system, enabling all forms of value transfer to be incentivized. Yield can only be generated through transactions, meaning users can only earn rewards when they spend their digital assets.
About Request Finance
Request Finance is a suite of financial apps that helps businesses manage nearly $290 million cryptocurrency invoices, payroll, and expenses that boasts more than 81,000 community members across its social media platforms. Using its app, businesses can send invoices, make and receive payments in a range of cryptocurrencies. The app is already widely used by hundreds of Web3 businesses, including AAVE, The Sandbox and Maker.