CRENCY
Crency is designed to equip credit-based mainstream payment devices with P2P payment service without a hassle of burdening investment. Crency, which is based on a patent filed technology, is an innovative solution to create compatibility between isolated payment devices and help them go mobile.
About PAXMONE
Paxmone Inc. invents and provides innovations which assist financial consumers to enjoy easy and convenient financial services and further supports those who have limited access to financial services. Paxmone runs its business in the principles of fairness and integrity.
PaxMone was born on a day in early 2006 when Sung-nam Hong and Eun-bok Lee teamed up to explore a new type of e-commerce business which provides an online marketplace designated for service transactions between individuals.
Recognizing the enormous power of the social networking environment in which individuals are encouraged to enjoy commercial transactions between each other, the two partners learned that a new payment system, which should be reliable and convenient, needed to be developed in order to effectively promote Person to Person transactions.
In fact, credit-based payment devices such as credit card could hardly be used for transactions between individuals (non-merchants). For example, if you hire a boy in your neighborhood for lawn-mowing, you cannot pay him with your credit card. You have to pay him in cash only.
“What if we can pay the lawn-mowing boy with credit card?”
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“It would boost up transactions!” Hong and Lee thought. And, the idea of allowing credit cards to be used for P2P transactions started to stimulate their imagination: What if we can pay rents with credit card, what if we can send money to my parents with credit card, what if we can pay a babysitter with credit card, etc…
Truly, in our daily lives, there are numerous occasions or transactions in which you have to use cash only for payments. If you can use credit cards instead of cash, it may change the world as much as credit card did over the last decades.
When coming to this thought, Hong and Lee began to dedicate their time and energy to developing a new payment business and, 16 months later (in Nov. 2007), they got a patent for a new payment method. Based on the patent, they spent another year developing a payment business model called “Crency”.
In July 2008, with Jong-oh Kim and Hyung-suk Suh joining the two partners, Paxmone was established as a new start-up. Since then, Paxmone has focused on articulating the Crency model with a goal of making it a viable business opportunity for potential partners, including credit card companies and mobile phone service providers.
“Crency Aims to Be a World’s Payment Platform”
To be a widely accepted payment platform, Crency is designed to accommodate the following three critical requirements:
- Can be easily adapted to the mainstream financial (payment) system
- Can be compatible between different payment devices
- Can be operated at reasonable cost
Crency is not a stand-alone payment service. It is supposed to be embedded into existing credit-based payment systems operated by financial institutions, mobile phone service providers (for micro-payment), or IPTV businesses. Furthermore, Crency accommodates transactions between payment devices such as a credit card and a mobile phone, which makes it truly differentiated and best fit for the open economy.
The Problem and Solution
The Consumer Problems
Although many new or alternative payment methods have emerged with the enormous growth of P2P transactions over the recent decades, still majority of individuals are loyal users of mainstream payment devices (e.g. credit card) and the mainstream devices hardly allow easy way of doing P2P payment.
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In addition, there is another critical problem that has yet to be resolved: “No compatibility between different payment devices.” In order to effectively support the rapidly growing demand for P2P transactions, people need to be able to use P2P payment service no matter what payment devices they would like to use.
Values cannot be transferred between different payment devices and even services (Credit card to mobile phone, or PayPal to Google Checkout). Moreover, given that everything converges into a mobile phone, a future of mainstream payment platform should be able to allow existing payment devices to go mobile without a burden of significant investment.
Indeed, many credit card companies and mobile phone service providers already have started to unveil new concepts such as contactless credit card. However, this kind of approach usually requires the business to take huge amount of development cost. Realistically, only a small number of financial conglomerates can afford such an investment in the short term.
In addition, the contactless technology has yet to address the compatibility issue successfully. The technology only requires consumers to carry an additional payment device on their mobile phones and more seriously does not accommodate P2P payment.
Our Solution
Simply, the solution should be an answer to the three challenges:
- To allow mainstream payment devices to easily accommodate P2P payment function
- To allow different payment devices to connect to each other
- To allow existing payment devices to go mobile with light investment
The solution we offer is Crency. Crency is a patent-filed (in South Korea and Singapore) or pending (in countries including the U.S., Japan and China) payment technology. Crency enables value transitions between different and isolated payment devices. With Crency, you can pay a flea market seller for an LP record with your mobile phone which is linked to your credit card account.
How It Works
Crency is a synthetic word of “Credit” and “Currency”. The name itself explains where it is meant for. Crency enables people to use their credits for P2P payment, which results in the circulation of credits.
For instance, if you sell your used laptop to a friend of yours at US$500, your friend can pay it with his credit card (it is impossible for now unless you are an authenticated merchant). You may receive the payment with your credit card (or a different type of payment vehicle you prefer) and the payment (US$ 500) adds up to your line of credit. You can also use the earned credit (US$500) to make a purchase or just leave it for settling your monthly credit card bill.
No matter what payment vehicle you use, in the world of Crency, it would not limit your transaction as long as your credit is available on your payment devices. All types of payment vehicles available now and in the future will be working with each other since Crency manages only “transaction data” not the flow of money.
Consumer Benefits
Crency works as embedded into your credit card or other credit-based payment account. Thus, your credit card account will have a number of pluses (credits earned) and minuses (credits spent) in a certain period (e.g. a month) and the account is settled at the end of the period. This unique Crency system, beyond the benefit that you do not have to use your cash for P2P payment, allows you to enjoy some extra merits compared to conventional alternative payment services:
No need to charge your account
You just use from your credit granted by your credit card company without a hassle of signing up for a P2P payment service account and charging the account from your bank account, cheque or credit card.
Lower fees or nominal charges
This is because you do not have to go through interchange processes to charge your accounts or withdraw money, so only a few business players are involved in the process.
Safe transaction
You have a chance to fix your transaction before your account is settled in the event of a fraudulent sale or an incomplete transaction.
Enormous Possibilities to Expand into New Business Models
The safe and convenient transaction environment which Crency creates lays enormous opportunities for new business by boosting up Person to Person transactions and other types of financial activities conducted in the human society.
If you imagine that you can pay your rent with your credit card, you can raise micro fund from your high school alumni with their credit cards for a homecoming day event, and you can donate small amounts of money to a community program while you are watching on your IP TV, you would get a strong sense of how Crency can change the way you live.
Crency Solution
Crency is a unique P2P payment solution designed for any business which operates a billing system in which consumers are allowed to make purchase now and pay later – such as credit card bill, phone bill, and IPTV (Cable) bill. If you wish to set up your own P2P payment system as an additional lucrative source of business, the Crency solution will enable you to achieve it with reasonable development cost and in a fast manner.
The Crency solution is provided in a form of middleware designed to be plugged into our partners’ existing systems. The middleware processes payment transactions by exchanging financial messages with a partner’s processing system of which core functions typically include user authorization and billing. As Crency is an embedded solution, not a stand-alone P2P payment model, our partners are able to operate their own P2P payment service for their customers and to have the freedom to create their own user interfaces.
The Crency solution’s major features are as follows:
Mobile Phone Number Account
Crency uses mobile phone numbers for account IDs. It is much simpler and easier, especially in this mobile age, than using conventional types of user ID, email address or account numbers. In order to make payment, what you only need to know is a mobile phone number of the payee.
Send Credit
Users may send credits directly from their accounts (e.g. credit card) and the sent credits are addressed to mobile phone numbers of payees. Payees may immediately use the credits earned from payers. Users will receive bills which contain the balance of all P2P transactions (sent or earned) and purchases the users conducted over a certain period (usually a month).
Request Credit
Some users may request credits from others for delayed payments. This request may be done by sending a reminder message to a payer’s mobile phone. These messages are tracked and stored in the Crency solution.
Escrow
Crency provides an escrow function which is optimized for credit transaction. The escrow helps prevent risks from transactions occurring between users who are distant from each other or have little relationship.
Refund
In association with the escrow function, credit refund is available to payees.
History Log
Users may check the history of all P2P transactions occurred in their accounts anytime they want.
Transaction Limit
Setting a credit limit for P2P transactions may be activated in order to control an individual user’s financial risk. Limits can be separately set for sending and earning.
Payment Data Transfer
Crency manages data transfer and routing process between different partners.
Our Business
Paxmone is seeking to work with businesses in the following categories for primary business partnerships:
Credit Card Business
Card Issuers and Processing Companies
Mobile Phone Service Providers
For partners, Paxmone will provide a P2P middleware designed to be plugged into processing systems that the partners already operate.
The middleware is developed to allow a partner’s existing payment system to adopt P2P payment function with minimal modifications to its existing system and further to have a partner’s P2P service compatible with another partner’s system.
We are sorry. Demo will be available soon. If you want information of the Crency solution, please send an e-mail to contact@paxmone.com.
Our Team
Sung-Nam Hong
Mr. Hong is a visionary entrepreneur who has dedicated his career to inventing and developing innovation-driven businesses. In 1999, he established an e-business consulting firm called eComMarketing which offered its clients business management and customer service strategies. In the meantime, as a passionate investor, he invested in and incubated a number of prospective start-up companies in technology-enabled new business areas such as e-commerce service, e-payment, and IT solution. He decided to restructure his consultancy into a new venture, Paxmone, with a vision to introduce an innovation to the financial sector.
Eun-Bok Lee
Mr. Lee, who joined the team in 2007, is the inventor of Paxmone’s Crency technology. Before joining Paxmone, he worked with Udnet, heading the development of a P2P marketplace business. While he was piloting the new business for P2P service transactions, he realized that cash-based payment seriously hindered the growth of the service marketplace. This inspired him to invent Crency technology. His previous employers include LG CNS and GM Daewoo Motors. He holds a Master’s Degree in Mechanical Engineering from Korea Advanced Institute of Science and Technology (KAIST).
Jong-Oh Kim
Mr. Kim formerly served Burson-Marsteller as a senior communications counselor before joining Paxmone in 2008. During his 10 years of service at B-M, he helped many of international companies to successfully deal with communications and regulatory issues. He also worked with JT International Korea as a corporate affairs director whose main responsibility was to manage stakeholder relationships and regulatory issues.
Patent Information
Patent Granted / Pending Technology
Patent Granted List
Patent No: US 8,600,846 B2
(Dec. 3, 2013)
Priority Data: Apr. 25, 2007 (KR) 10-2007-0040415
Title: System And Method For Financial Transaction
Patent No: 特許 第5319661號
(July 19, 2013)
Title: 金融取引方法
(System And Method For Financial Transaction)
Patent No: P-No. 156316
(Mar. 31, 2010)
Priority Data: Apr. 25, 2007 (KR) 10-2007-0040415
Title: System And Method For Financial Transaction
View all patentsShow fewer
(Oct. 14, 2013)
Priority Data: Apr. 25, 2007 (KR) 10-2007-0040415
Title: System And Method For Financial Transaction
(Filing Date: Apr. 25, 2007)
Patent No: 10-0078944
(Nov. 16, 2007)
Title: System And Method For Financial Transaction
Pending List
Title: System And Method For Financial Transaction
Title: System And Method For Financial Transaction
Contact Us
Paxmone Inc.
www.paxmone.com
Address:
#1206, Partners Tower II, Digital-ro 32ga-gil 16, Guro-gu, Seoul, Korea
Phone: +82-2-3443-8001
Email: contact@paxmone.com
If you are interested in business opportunities with Paxmone, please send an email to contact@paxmone.com.