Prontapay aims to use blockchain to change and revolutionize the invoice payment space for the better. It is important to first take note of the traditional business invoice system.
“Our vision is to be the world’s first blockchain invoice solution to truly cross over into the mainstream system & help businesses of all sizes get paid more efficiently, on time and create a more stable fast and secure invoice ecosystem” (Prontapay Whitepaper, p. 2).
PRE - ICO Basics:
Token Name - PRO
Type - ERC20 Token (Built on Ethereum platform)
Presale Bonus As Follows:
As of 4/23/18 - 100% (+5% when buying > 10 ETH)
Tokens Sold -
First 0-5,000,000 Tokens Sold - 100% Bonus
(1 ETH = 7,000 PRO)
5,000,001-25,000,000 Tokens Sold - 40% Bonus
(1 ETH = 4900 PRO)
25,000,001-50,000,000 Tokens Sold - 25% Bonus
(1 ETH = 4375 PRO)
50,000,001-75,000,000 Tokens Sold - 10% Bonus
(1 ETH = 3850 PRO)
End of Presale - 6/14/18
ICO Price - 1 PRO = 0.000286 ETH
(Assuming ETH price of roughly 1 ETH = $635 USD on 4/23/18, at the time of writing this article, would mean that 1 PRO = about $0.18)
Start - 7/1/18
End - 8/1/18
PRO Token Basics:
Total Token Supply - 250,000,000 PRO Tokens
Tokens for Sale During Pre-ICO and Main ICO - 30% (75,000,000 PRO Tokens)
Reserve Tokens Retained by Prontapay - 30% (75,000,000 PRO Tokens)
Tokens for Management and Employees - 18% (45,000,000 PRO Tokens)
Bonuses - 10% (25,000,000 PRO Tokens)
Bounties and Referral Programs - 9% (22,500,000 PRO Tokens)
Air Drop and Promotional - 3% (7,500,000 PRO Tokens)
(Above information from https://www.prontapay.io/?utm_source=icobench)
Prontapay Explainer Video
Introducing Prontapay, the worlds first Smart Legal Invoice platform built on block chain technology to help SMEs get paid on time, save money on tranaction ...
The Traditional Invoice System:
An Invoice is defined by Merriam-Webster.com as “an itemized list of goods shipped usually specifying the price and the terms of sale” and “a consignment of merchandise” (Merriam-Webster.com).
To be put very simply, when a person/business takes part in receiving a good or service from a third party, an invoice would be involved to officially verify the amount of compensation owed or paid for said goods/services, and what specific goods or services were involved.
For example, say Company A (a prominent car company) orders 1000 sets of wiper blades from Company B (a windshield wiper manufacturer). Company B would send Company A an invoice, along with the order, to verify the quantity and selection of goods purchased. This invoice must usually be cross referenced over several departments to check for its validity and accuracy. If everything is correct, the invoice is approved.
There are however, several inefficiencies associated with the current traditional system, as stated by Prontapay in their white paper. These difficulties range from anything from extra payment cost from payment providers, to payments taking longer than expected or agreed on.
Prontapay states that “29 percent of small businesses that don’t insist on upfront payments say reducing the time taken to get paid will enable them to run the business more effectively” (Prontapay Whitepaper, p. 5). Prontapay also states that, at times, when there is no legal agreement signed between the involved parties, that promptness is unimportant. The customer may even attempt to escape payment altogether.
“The average small business is owed more than £108,000 in unpaid invoices, an increase of 8 percent since the last Business in Britain report in January 2017, with almost a third of firms (29 percent) citing late payments as the biggest cause of cashflow problems” (Prontapay Whitepaper, p. 7).
The Prontapay (PRO) Invoice Solution:
Prontapay looks to use their innovative blockchain solution to solve many of the aforementioned problems. The Prontapay system is built on the Ethereum network, with smart contracts being a pillar to their system. “We will then utilize the blockchain to validate the transaction and facilitate instant automatic payment on the invoice due date using Ether (ETH)” (Prontapay Whitepaper, p 8).
Prontapay will have a mobile and desktop interface where companies will have the ability to create and send legal invoices made with smart contracts. This differs from the traditional system, in that smart contracts give many bonuses. Smart contracts have the ability to be dated and sent quickly with a request for payment. According to Prontapay, once the receiving party signs the smart contract, it would then act as a binding agreement for the sale. Payment would have an agreed upon due date within the smart contract. By signing the smart contract, the customer would be agreeing to his or her Ethereum balance being automatically debited the agreed upon amount, when the aforementioned due date arrives.
This innovative solution appears to have many benefits when compared to the traditional system.
Potential Inefficiencies of Traditional Invoicing:
- Slow payment (customer may be slow to pay)
- Slow receipt of payment clearance (Payment takes time to clear with involved banks, etc.)
- Potentially higher third party payment platform fees (credit cards, banks, etc).
- Length of time for traditional contracts/invoices to be faxed/email, signed, and returned.
Potential Benefits to Prontapay’s Blockchain Solution:
- Proposed payment guarantee (Payment should be automatically transferred on the exact date specified in the smart contract)
- Payment speed (cryptocurrency offers the benefit of direct transfer of value from one party to another, without need for third parties or excess time to wait for said parties during working hours)
- Transparency (blockchain offers transparency for users to publicly see/prove that transactions were sent, while still remaining anonymous to the public)
- Lower transaction fees, comparative to traditional systems (“Every transaction that uses Prontapay incurs a 1% transaction fee, which is far cheaper than competitor rates. For instance, PayPal and other credit card facilities charge 2.9% and above. Prontapay’s solution is up to 66% cheaper than the alternatives” (Prontapay Whitepaper, p 8)).
- Speed of authentication (signing a smart contract can offer a secure signature while not having to actually physically sign the agreement, which can take extra time to complete in the process)
- Payment security from the a blockchain solution
Blockchain has the potential improve many different aspects of the traditional system. Prontapay looks be that solution in the area of invoicing.
*Article written based on my interpretation of the data.
Invoice. (n.d.). Retrieved April 23, 2018, from https://www.merriam-webster.com/dictionary/invoice
*This is a sponsored content post. All opinions expressed in this post are based on my personal view and should not be considered financial advice for anyone to buy or sell anything. Always conduct your own independent research before making decisions for your portfolio.
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