6DOT50, a South African-based startup, is set to enable crypto-holders pay for goods and services with its Digital Rand Money Vouchers.
Speaking on the development, Warren Venter, CEO, 6DOT50, said, “Our recent crypto release, enabling cryptocurrency holders to access products and services from our merchant network using their crypto value, has started to pick up momentum.
More than 93 percent of cryptocurrency enthusiasts have indicated that they would use their cryptocurrency to make payments. We are excited to make this a reality in South Africa.”
6DOT50 was founded in 2019 and funded via a combination of debt funding and equity.
In May 2020, its first product offering was launched amidst the level five lockdown in South Africa due to the inability of local employers to pay their cash-based employees at the time.
That event did not only drive the development of the business, it also introduced 6DOT50’s Digital Rand Money Vouchers.
The platform provides an easy onramp to its cash-based customers for them to enjoy safe and convenient digital payments and hold a digital store of value.
It also offers crypto traders an easy offramp thereby making crypto acceptable across its merchant network just like bank card payments.
Its free-to-user model ensures that whenever members use their account value to access products or services, 6DOT50 pays the merchant the amount minus the fee negotiated with the merchant. It monetizes through settlement fees negotiated with its merchant network.
6DOT50 has more than 40,000 online retailers and stores across South Africa, and offers a free transactional account to all users.
Its merchants include Checkers, Zapper-enabled merchant, Shoprite, etc.
The platform accepts Ethereum, Bitcoin, Litecoin, Dash and Bitcoin Cash as payment for purchasing its Digital Rands.
The Digital Rands can be used to pay for goods and services, and it takes less than five minutes to purchase the Digital Rands.
Speaking on the setup of the 6DOT50 model, Venter said, “6DOT50 operates a digital money voucher-based, banking grade, a transactional platform designed as an alternative way for people to store money, instantly send and receive money and pay for goods and services without the need to own a bank account.”
The important aspect of the 6DOT50 model is that it does not require KYC because it is not a deposit-taking institution, and it is not regulated by any finance or banking legislation.
The platform allows users to send and receive funds, pay for goods and services, and store money alternatively with its Digital Money Vouchers without having to own a bank account.
Users only need to open a free 6DOT50 transactional account with a South African mobile phone number.
Since crypto solves the problem of high-fee imposition and difficult documentation requirements that people face in the hands of conventional banking systems, the platform will ensure that those people are not excluded from the digital economy and that they can transact seamlessly without outrageous fees and cumbersome registration processes.
The platform acknowledges the gap between the world of real production industries, fiat and cryptocurrency, hence its aim to bridge the gap between these worlds by enabling the conversion of fiat and cryptocurrencies to a digital representation that makes cash and crypto payments acceptable, just like bank cards, across its merchant network.
The company also has plans to introduce its Digital Dollar Vouchers later this year and seeks to scale beyond South Africa.
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