Outlining Thor’s Payment Solution

by

Reggie Clodfelter

Director of Communications at Thor

San Francisco, April 4, 2018—Thor is excited to implement a payment processing platform that will greatly improve on the current system for both independent contractors and the On-Demand companies that employ them.

By leveraging the NEO blockchain, we are creating an end-to-end payment processing solution that will disrupt current payment infrastructure by offering the same services cheaper, faster, and more securely. This is possible by reducing the role of third party verification providers that currently dominate the industry.

These features will be discussed in even greater detail in our technical white paper which will also outline the Contractor Portal and Employer Dashboard.

Problems With Current Payment Paradigm:

A typical On-Demand company relies on payment facilitator gateways to handle their customer credit and debit card processing as well as Automated Clearing House (ACH) payment for their contractors. Currently, that process typically costs an On-Demand company 2.9% + $0.30 per customer transaction as well as 0.80% (max $5) for each ACH payment for contractors.

This process can be improved for both contractors and On-Demand companies in the following ways:

On-Demand companies:

  • An end-to-end payment processing solution (from customer to On-Demand company to contractor) that is cheaper, quicker, and with less fees
  • Faster access to processed revenue

Contractors:

  • Quicker access to earned income
  • Payouts with lower administrative costs

Thor’s Proposed Payment Solution:

Credit/Debit card payment processing API

Recognizing that Thor’s payment protocol will still need to handle traditional credit and debit card payments, we will build out a payment processing layer by working directly with credit processors and becoming a payment facilitator gateway. In doing so, we will reduce the cost and fees associated with credit and debit card payment processing for On-Demand companies.

Thor Tokens payment processing API

The biggest advantages of utilizing blockchain technology are transparency, speed, and security. Being on the NEO blockchain, we do not have to rely on a third party to verify a transaction payment. Each Thor Token payment can be finalized when the current block is confirmed, generally within 30 seconds. This quick transaction turnaround allows On-Demand companies and contractors to access their payout a lot faster than a traditional credit and debit card payment, which generally requires a minimum of 24 hours for the funds to settle and can take much longer before a contractor has access to those funds.

Given each Thor Token transaction is published on the distributed NEO ledger, all transactions are transparent and there is a very low security risk from fraudulent payments that can incur a significant cost on chargebacks for On-Demand companies.

In addition to facilitating payments in Fiat currency, Thor will build a payment processing API layer for On-Demand companies to allow their customers to pay for their services using Thor Tokens. By supporting Thor Token payments, Thor can reduce the fees required in each customer payment to $0 and increase the revenue for On-Demand companies as well as the payout for the contractor.

Employer Wallet

Each On-Demand company will have a wallet on the Thor payment platform. This will be a secure virtual account that facilitates ACH bank transfers to the company’s business account and has an attached debit card. Each On-Demand company can determine the Fiat/Thor Token revenue ratio for their Thor platform wallet. We will provide incentives for On-Demand companies to keep Thor Tokens and use them to purchase enterprise services on the Thor platform such as advertising and exposure.

Contractor Wallet

Each contractor will also have a wallet on the Thor payment platform. This will be a virtual account with a corresponding debit card and the ability to transfer funds to a third party bank account. Each contractor can determine the Fiat/Thor Token payout ratio for their Thor platform wallet. We will provide incentives for contractors to keep Thor Tokens and spend them on discounted Contractor Portal benefits.

Internal assets pool balancing algorithm

Since Thor will need to maintain a healthy balance between Fiat and Thor Tokens, Thor’s payment platform will implement an internal assets balancing algorithm that tracks and rebalances the Fiat to Thor ratio in the company’s holdings. In scenarios in which Thor’s Fiat pool is lower than desired levels, the algorithm will automatically sell Thor Tokens on the open market (from either centralized or decentralized exchanges) to increase Thor’s Fiat holdings. When the opposite occurs, this algorithm will buy Thor Tokens in the open market to replenish the Thor Token pool.

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