Topic: Facilitating transactions between fiat payment networks (Read 153 times)

You're not understanding. Let me try again.

John and Sally live 1,000 miles apart.

John wants to pay Sally $20 U.S. dollars.

Sally wants to receive $20 U.S. dollars from John.

John uses PayPal.

Sally uses Apple Pay.

Do you see the problem?

But Sally doesn't have a bitcoin address, she doesn't understand bitcoin, and she doesn't want to. She uses Apple Pay to send and receive money.

How does John, who uses PayPal, transact with Sally?

Today, they cannot transact without 1) establishing trust and 2) learning and obtaining new applications.

I want John and Sally to be able to transact without worrying about which payment app the other is using.  John simply says to Sally "I'm @JohnX123, send me $125.56".  Sally adds that contact to whatever apps she's already familiar with and uses that app to send John the correct amount, in dollars.

Behind the scenes the nodes for PayPal and Apple negotiate an appropriate BTC amount and execute the instantaneous Lightning transfer of Bitcoin and exchange back to fiat.

But for the end-user there's nothing new to learn, nothing to install, nothing to convert, no wiring money, no worries about whether you're using the same app, no exchanging bitcoin for dollars, no exposure to BTC price risk.  Just get their ID/name and click Send using the app you already know.

Doing this on-chain would be too expensive in time and money. If John wants to send Sally $5 he doesn't want to pay $1 in fees and he wants to know instantaneously that the transfer was completed, not ten minutes later. Thus, Lightning on the back-end.

Does that make sense?

What you are saying makes no sense.

If a person doesn't have paypal, doesnt use btc, has no interest in it, why would Sally want to receive btc?

If Sally wants to receive btc, the first thing she has to do is to google it and download a wallet or choose a custodial service like PayPal. There is no other way. There is no new tech that can solve that.

You are basically asking how to receive a wire without a bank account.

I don't know anything about Apple pay, but she will have to do something with fiat, no bitcoin involved.


You can make bitcoin transaction with less than 0.10 usd, but 1usd is quite usual.

You have to understand thay bitcoin is a permitionless,  trustless, pseudo anonymous, global payment system. You could be sending millions of dollars  from Japan to NYC in less than third minutes, without any custodial service and basically for free.

You wanyt to use all that to send 5 usd to a person  who doesn't even want to create a wallet. And you think it is expensive? It is not.
Bjtcoin was not meant just to buy coffee, you can use visa for that. It was created to transfer ryour life savings when you are running away from war. Or to buy a bus ticket from Syria to turkey.

Just give a few bucks in cash to Sally and tell her to Google about bitcoin.

It is completely possible. John just need to asks for Sally's bitcoin address. John will withdrawal his Bitcoin from his paypal account to Sally's address.
Sally will then make a wire to John bank account (as sally can't send money to a paypal account without having one).

There is no need for lightning or any of that. Bitcoin network was designed to handle this type of transaction.

Lightning is useful for scalability.

Let's suppose Netflix is going to charge 0.000001 BTC for every 1 hour you watch a series.
Lightning can handle those payments. Imagine making a bitcoin transaction every hour, too much money would be wasted in fees. Lighthing is useful for that kind of stuff.

It doesn't need to be in Lightning Network, neither offchain (however it could be).

It is basically a centralized exchange service. In this case, Paxos is the Paypal Partner, and will handle everything crypto related.



Paxos has an exchange which paypal will probably use and will be integrated in the plataform https://www.paxos.com/crypto-brokerage/

I think it will work like this, in paypal:

- Paypal user deposited 400 USD to his paypal account.
- Paypal user bought 0.01 BTC inside Paypal: This is when Paxos comes in, and will be responsible to exchange fiat x btc.
- Same user withdrawal his btc to his wallet, on chain transaction.



All this will happen inside Paypal infrastructure, where all users give their documents (KYC).

You will share your email/paypal username with your friend who has the mobile device and everything will be handled by paypal/paxos, inside their centralized plataform.

Given the news recently about Paypal's upcoming deployment of capability to transfer BTC to external wallets, Apple's advertisement of an open  biz dev position related to alternative payments, Venmo's entrance into BTC, etc, I'm wondering what technology needs to be developed to facilitate easy transfer between these payment systems via BTC? Obviously the transactions would occur off-chain (Lightning), but the primary issue seems to be contact/identity management. Do DIDs fit the bill here assuming the payment network integrate those identities into their apps? Consider the use-case where two mobile device users want to transmit money from one to another across disparate payment networks. How do they add each other's contact/identity info?