This post explains how TRIO offers an advantage over alternative money transfer methods for remittances and payments.
Traditional Money Transfers
Digital Remittances: This refers to the electronic transfer of money, typically between countries. Migrant workers often utilize this method to send funds back to their home nations. It provides a convenient, fast, and secure alternative to traditional options like wire transfers.
P2P Payments: Sending money to someone for goods or services, often done through trusted intermediaries like PayPal, Zelle, or AirBnB. Such services are limited because they are Closed-Loop networks, meaning payment parties, the Payer and the Payee, must be on the same platform.
The Problem with Traditional and Emerging Methods
High fees: Traditional remittance and payment services can charge high fees, sometimes exceeding 15%.
Limited reach: Closed-loop P2P payment services only work between users on the same platform.
Security concerns: Emerging Crypto transfers can be vulnerable to hacking and illegal activity.
Introducing TRIO Conditional P2P Payments and Remittances.
TRIO offers a secure and cost-effective way to send and receive money.
Open-Loop and Closed-Loop accounts: The TRIO self-custodial wallet provides Open-Loop accounts for engaging with external users and Closed-Loop accounts for internal transactions within the TRIO ecosystem. Open-loop accounts are established by importing third-party accounts from a Hot or Cold wallet. Closed-loop accounts are generated instantly using the user's seed phrase and his Cloud-based Identity.
Secure payments or remittances: Money is locked in a TRIO token until the Payer (the Buyer) confirms he/she received the goods or services or the Payee (the Recipient) of the remittances so desires.
Competitive fees: TRIO charges a 3% fee for remittances and payments, which is lower than many traditional services.
Here's a breakdown of how the TRIO Open-Loop wallet works:
1. The TRIO sender swaps their ETH for TRIO tokens, paying a 1.5% fee. Then he sends it to the recipient's wallet address.
2. The TRIO tokens are securely locked in the recipient's wallet address until the sender confirms he received the goods or services or the remittance recipient decides to cash in. Irrespective of the recipient's wallet type.
3. Then, the recipient can convert the received TRIO tokens back to ETH, paying a 1.5% fee, after completing KYC (Know Your Customer) verification. Thus the recipient becomes the user of the TRIO Ecosystem.
Benefits of TRIO:
Security: Money is secure in the recipient's wallet until he chooses to cash in.
Cost-effectiveness: TRIO's fees are competitive compared to traditional money transfer services.
Flexibility: TRIO offers both open-loop and closed-loop wallets for different use cases:
Following the establishment of Trust between the Payer and the Payee, the latter joins the TRIO Ecosystem and both parties may continue their relationships:
1. Remittances can proceed via the Recipient's TRIO Wallet Imported Account, or both parties might choose to utilize their Created Accounts within a Closed-Loop Network.
2. Payments may be continued using a Closed-Loop TRIO network.
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