bi on Solution white paper

bi on Solution white paper

Billon Solution Overview Despite concerted efforts for years, cash has not yet been eliminated. Mostly because not everyone has a bank account and debit card - an estimated 2.5 billion adults are unbanked or under-banked globally 1, and even in the U.S., an estimated 27.7% 2 of households fall into these categories. And even if a person has a debit card, cash is still used for payment - in Europe alone, cash based transactions still represent over 60% of all transaction volume and value. Pre-paid cards seem to be a potential solution, and Mastercard estimates this as an $822 bn opportunity globally by 2017 3. Pre-paid mobile wallets are also a growing solution, enabled by 1.75 bn smartphones exist worldwide. However, most pre-paid wallets or cards require (a) on-line, and (b) central authorization. So to be truly efficient, a solution is needed which provides digital wallets or pre-paid cards which work off-line, and which eliminates central authorization costs. And let s face it, it needs to be real cash, not a crypto-currency. Introducing Billon Billon digitalizes paper cash into electronic block-chain files that can be moved instantly and for free between any users who have a Billon application 4. This takes the classic mobile pre-paid wallet and allows it to make distributed peer-to-peer payments either between individuals or at a touch, a user is transformed into a merchant issuing an invoice. Using Billon, you can send payments to anyone in the world, in any currency, in seconds, for free. Billon allows instant cross-currency payments as well: you can send one currency (dollars, euros, 1 McKinsey and Financial Access Initiative, Half the World is Unbanked, October 2009 2 2013 FDIC National Survey of Underbanked and Unbanked Households, October 2014 3 2012 Pre-paid Market Sizing Study Commissioned by Mastercard 4 Note: at the moment, only digital wallets have been implemented, but pre-paid cards and NFC devices can be adapted for use as well 2/5

pounds, etc.) and the recipient receives another (yen, yuan, rupees, etc.). Billon also makes micropayments cost-effective even payments less than a penny opening the Internet to business models that would previously have been impossible. Most importantly, Billon is safe. Transactions are cryptographically secure, algorithmically verified, and are always authorized (and only by) payee and payer. And Billon is anonymous, similar to cash. Users set up their own user names. Billon is unlike anything that previously existed. It makes sending money easy, and creates new possibilities for payments. How it works Here are the primary components that make Billon run: 1. E-money issuer this can be a bank or an authorized e-money issuer (we chose banks for the 1st implementation, but we don t need a bank). 2. Unique cryptology system. Triple key security is placed on each currency file, including a key from the user. 3. Distributed peer-to-peer payment technology, that enables to pay via digital cash directly between users without intermediaries, servers or even Internet. It is free to everyone and lets anyone send payments in any currency to anyone in the world. 4. POS & ATM connectivity. ATM withdrawals and POS payments are facilitated similarly with a software scheme installed at ATMs and POS terminals. But you can also enter a destination bank account number, and the issuing bank is instructed to move the cash to the destination account using ACH systems. 3/5

1 Bank holds currency in pooled account 2 User downloads encrypted currency files (triple security keys) PC / MAC Tablet User downloads app, then coins User defines PINs, passwords and limits System refreshes coins from time-to-time (to reduce file history) Phone Coins are safeguarded in the user s cloud, i.e., small individual pools of coins deter hacking attempts 3 Coins circulate. Instant payment via NFC, bluetooth, bump, etc. Each transaction adds history & additional keys 4 Merchant or person can transfer (redeem) to any bank or withdraw at ATM Payments are peer-to-peer to: Merchants Users But... that`s not all Billon includes a: 1. Complete payment system, including: a. Physical POS solutions utilizing any infrastructure where the native app can be installed b. On-line merchant acceptance 2. Forex feature to make cross-currency payments easy - you can pay using whatever currency you want and the recipient receives whatever currency he or she wants. 3. Open infrastructure to allow developers to access Billon s API s to create own applications on top of Billon. With the API developers can build not only variable payment solutions but also use extended Billon features like Open-ID. 4/5

Immediate Use Cases Billon provides a number of solutions to real-life business problems. 1. Micro-lending delivers loans directly via a mobile website or in the mobile app 2. Online Gaming Micro-payments instant purchase of virtual goods in browser-based and app-based games all one-click instant payment and with final settlement 3. E-commerce shopping in all environments: web, email, facebook, twitter delivery and invoice data passed from buyer to shop with one-click 4. Temp Worker Payments distributing salary to temporary worker, and those taking small payments, such as online employees of research agencies or people paid to do small on-line tasks Regulation Compliant Best of all, Billon technology complies with e-money regulations. Billon s partners include banks holding licenses as e-money issuers. Billon technology includes triggers which prompt for KYC action when anonymous users reach the EUR 2,500 threshold for the Eurozone, and such triggers can be set at any level for other markets. 5/5