Merchandising by Exchange as a Payment Method

I. Objective

This RFC describes a novel payment method that effectively eliminates the need for any standardized medium that acts as a store of value. Elimination of this international standard is particularly useful for removing friction and latency associated with online payments.

II. Proposal

While institutional and technological advancements have revolutionized the way we transact, they have failed to remain backward compatible with primitive modes of value transfer within hyperlocal communities. Historically, these methods were deprecated due to the complementary demand problem but modern payment orchestration platforms can solve this through a network topology that simulates closed-loop commerce.

The payment method is presented as a wallet during the checkout. The user selects the method and uploads a merchandise artifact. Upon submission of the item, Hyperswitch servers dynamically scan a social graph connecting all live merchant accounts to create double coincidence of wants on demand.

Since physical items are non fungible in nature, Hyperswitch’s fraud engine authenticates the payment request before invoking the merchant graph for a match. Finally, the smart router determines the optimal delivery path and uses the merchant’s logistics rails for settlement.

III. Open Questions

What kind of fallback and retry mechanisms can be incorporated? What is the feasibility for recurring payments, payouts and refunds? Can the transaction units be tokenized?

IV. Additional Context

The wallet in this case takes a more tangible form factor as opposed to traditional e-wallets. They are basically warehouses for the physical transaction units. Note that this method eliminates the need for PCI compliance altogether, thereby creating a truly open payments ecosystem. At its core, the payment flow fosters the fundamental human tendency to form patterns of interdependent sharing of resources.