Yesterday I talked about how PSC will allow us to differentiate between parties buying and parties consuming a service. The second driver behind the introduction of PSC which I will talk about today is that PSC will allow us to create a more efficient marketplace.
Driver 2: creating a more efficient marketplace
PSC will allow our platform to manage microprojects and micropayments so parties can conduct business without paying high transaction and payment fees. Micropayments for smaller requests, standard services and value-added services will have reduced transaction costs and our current minimum fee will be removed.
This changes our business model. To date we have charged a fair fee – between 12% to 20% depending on the service type – in addition to the transaction price negotiated between experts and clients. With the introduction of PSC our service fee will be reduced – 8% set as maximum, going as low as 0% in some cases – and our minimum fee rule no longer applies. Experts can now receive PSC in payment for their services which can be converted into USD, Euros or another currency. Peerwith offers full buyback on the coin against a 12% fee and minimum withdrawal.
Examples: PSC transactions
Clients can purchase PSC on the Peerwith marketplace as part of a payment step or as a separate transaction. The minimum purchase amount is 20 PSC which is equal to 20 USD. This will replace our current minimum fee. If a client engages in a connection for less than 20 PSC the remaining budget will be stored in their wallet for use in another service request. As a note, in the new setup a service fee of 0% – 8% will apply for all quotes prepared by experts in response to a client request, the amount dependent on the category and type of service.
Discounts, refunds and/or coins “received” through other channels or partners can all go into a client’s wallet and will be available to spend on future service requests. Once a client accepts a quote and makes a connection they can easily pay using funds in their wallet. If there are insufficient funds, the option to buy coins appears. We will continue to use Paypal for payment purposes, at least for now.
Funds “sit” in the Peerwith ecosystem until a client accepts delivery. At that time, coins transfer into an experts wallet. We will continue to offer a full money back guarantee. In such cases coins will transfer back to a client’s wallet (“refund”).
The pay-out process for experts (or clients) will change as there is no longer an automated pay-out process. Experts receive payment in PSC, which end up in their wallet. Experts decide when they are ready to receive pay-outs and then “sell” back their coins (again, a minimum amount of PSC 20) to Peerwith, for a 12% transaction fee.
So the 12% service fee moves to the end of the process, only when a coin “leaves” the ecosystem. Experts may decide to leave coins in the ecosystem a bit longer, which is a perfect opportunity to support the platform as a business.