PayPie is a blockchain accounting platform that brings trust and transparency to the financial markets through its single ledger platform.
Paypie will gather and provide real-time financial data to achieve 100% accuracy on credit risk assessment. This will allow lenders, investors, banks and other financial institutions to safely and securely help SMEs (small to medium businesses) grow their companies quickly and much more efficiently than the double entry accounting system currently being used — a system which is difficult to regulate and easily tampered with.
This article provides an explanation of how the whole PayPie ecosystem works in layman terms in order to help the average investor understand what the platform is trying to achieve without getting too technical.
How Does PayPie Work?
Let’s start with the single ledger blockchain. After all, the single ledger is what brings everything together, from the SMEs to the investors and you’ll see how it all ties in.
Here’s how it goes:
Company A is registered on PayPie’s platform and they’ve integrated all their company’s credentials on the single ledger blockchain using either SlickPie, QuickBooks or any other accounting software linked to or partnered with PayPie.
They can now use the single ledger’s triple entry accounting system to transact with other companies.
So, let’s say Company A just sent an invoice to be paid to Company B on the single ledger. Company B is now going to pay their invoice. As soon as that transaction is sent, it is hashed and time-stamped using PayPie’s single ledger technology. Each transaction is assigned a unique fingerprint, allowing both parties to see it and it is published on the blockchain.
This shows both parties’ transactions as verified and complete which allows both businesses, as well as auditors, accountants etc. to keep track of business financials. This includes sales invoices, vendor bills, expenses, debt etc.
This can help prevent unethical practices from companies which misrepresent earnings and change balance sheets to show favorable performance towards their company.
PayPie has the potential to disrupt the accounting industry in amazing ways by saving accountants, auditors and companies so much time, effort and money. This is because everything is recorded on the blockchain and ready for them to see and utilize anytime and for any purpose deemed necessary, whether it be for tax season right down verification for audits.
Companies spend tens of thousands of dollars on salaries to organize and retain information like this. This can now be nicely organized and presented on the blockchain, and it can be viewed and utilized in literally minutes.
It’ll always be there, easy to find and tamper-proof!
PayPie’s Credit Risk Assessment
PayPie’s credit risk algorithm will score each company based on its financial and transactional history in the platform.
Their credit risk algorithm will pull all of the data discussed above, plus over 150 other data points such as assets, liabilities, capital, earnings, gross sales (to name a few). It will then create a credit rating on the company and display it using beautiful charts, numbers and ratios.
The credit information will be presented in a way that is straightforward and easy to read for all interested parties such as future potential lenders and token holders as well (we’ll get into token usage later).
Here’s what else is amazing and revolutionary about the credit risk algorithm that’s going to separate PayPie from the competition: they will pull data from the single ledger blockchain in almost real time.
This means that their financial data and credit score is up-to-date to the day of analysis. This is a very big deal as almost all credit risk assessments are done quarterly at best and even sometimes up to a year behind.
The amount of damage that can be caused to a company’s financials in one year is huge and can significantly increase the risk of a potential lender’s investment as they do not have access to current and up-to-date info.
The accuracy of PayPie’s single ledger, being tamper-proof combined with real time credit assessment, dramatically lowers risk for investors.
Anyone in the lending business knows exactly what kind of value and insurance this technology can add as it can vastly increase the success rate on your investment.
Invoice Factoring for SMEs
We’ve discussed the single ledger and how its triple entry system makes transactions and data tamper-proof and talked about how the credit risk algorithm pulls data from the single ledger’s precise and up-to-date data in order to create real-time credit scores.
Naturally, invoice factoring comes next.
With all the functions of the PayPie’s single ledger and credit risk algorithm in place, it allows SMEs to take advantage of their data. SMEs can use it to post invoices asking investors to fund at a percentage.
This can help SMEs stay cash flow positive. It can also help a growing SME scale up without worrying about net 30/60/90 terms choking them out of growth opportunities due to lack of liquid funds.
Simply put, oftentimes customers sign a contract saying they don’t have to pay their invoices for 30-120 days depending on the agreement. This can cause a company to fail due to a lack of cash flow which is unable to carry a company for up to 120 days.
If a company shows they’re credible, with a good transactional track record through the platform, they won’t have any issues getting financing because of their good credit standing.
Invoice Factoring for Investors and PayPie Utility Token Holders
As for the token utility on the platform, essentially token holders are the ones working on the back-end of the platform.
Here’s how it works, in brief:
- Investors will sign up with PayPie
- You can now deposit your tokens to navigate the platform
- All data pulled from the single ledger and credit risk assessment is available to you
- You can find posted invoices, and begin using PayPie’s software to do your own assessment on a company looking for invoice factoring.
PPP tokens can be used to purchase credit risk analysis on a company (pretty much like running a car fax on a car you’re interested in buying) that you feel is a good candidate for your investment.
Here’s an example.
Let’s say a full credit risk analysis on Company A is $10, and PPP is worth $10 per token. You will use 1 PPP token to receive an up-to-date and easy-to-analyze company overview with credit risk assessment, allowing you to make a clear decision on what terms you’d like to bid on the invoice you’re interested in factoring.
Here’s what happens next after you’ve won your bid.
Let’s say the invoice you bid on was worth $10,000 at 3% interest and it’s a net 30 (30 day) loan. Once again, let’s assume a PPP token is worth $10. You will have to stake 1,000 PPP tokens on the platform, which then in turn makes you the lender.
Company A has now received their loan from the tokens you have staked on the platform, and you will be paid back in 30 days + 3% interest in PPP tokens.
1000 PPP tokens + 3%ppp = 30ppp tokens. At $10 each, this is a $300 value returned in PPP tokens, plus your initial 1,000 PPP returned for a total of 1,030 PPP.
You are now free to keep your PPP and keep using the utility of the platform or sell them to another interested investor at its current value to redeem your $300.
There is, however, a small fee that the PayPie does take. As the fee amount is not yet known, it has been left out to simplify the equation. My guess is that the fee will be 0.5%, or even less.
The fees associated with using the platform will be more than fair for the value and reassurance you get from the accuracy of their software.
Using PayPie can save a lot of money in the long run due to not having to hire someone to run the financials on a company. Moreover, this kind information is usually only available to large investors and banking corporations, and the average investor will have a difficult time obtaining it in an up-to-date and timely manner.
In conclusion, the PPP token will be the bread and butter for navigating the platform. Its utility will allow the platform to run smooth and seamlessly between the SMEs and investors.
The PieCoin will be the platform’s stablecoin. It will be pegged 1:1 with a stable currency and used internally for certain settlements
There isn’t a whole lot of information on PieCoin’s economics, partially due to the fact that it likely holds proprietary value to the ecosystem which may be part of the patent application process PayPie has applied for.
The PPP token is completely separate from the PieCoin (something that people often get confused about).
As an example, think of Ethereum — ETH is the PPP token (utility to navigate the blockchain) and Gas is the PieCoin (used to settle contracts). This is the best analogy on the PieCoin I can share at this time, through the research I’ve done.
Why PayPie is a Project That Shouldn’t Be Overlooked
PayPie is an extremely ambitious project making exceptionally good progress in the crypto space. The team has delivered on exactly what it has set out to do — from alpha release, to beta, then SlickPie amalgamating their already 16,000+ clients to PayPie.
They’ve also secured partnerships with Debitum and QuickBooks who have over 2+ million SMEs already on board using the QuickBooks platform.
Once the single ledger integration happens, that’s a whole lot of exposure for this project to thrive and make massive moves in the industry of accounting on the blockchain. They have the potential to completely disrupt the 600-year old double entry accounting system that’s proven time and time again to be flawed.
In just 1 year, PayPie has already put a massive dent in disrupting a 600+ year flawed system!
The platform can helping SMEs scale up business through invoice factoring, not only with near 100% accuracy and in real time but also at a finance rate much easier to sustain than banks and other similar lending institutions.
Can you imagine a time where an individual or company will be able to have a full company analysis including credit risk assessment, apply for a loan or invoice to be factored, and be approved AND receive their funds within the same day?
PayPie is set to revolutionize the finance industry. Time is money and providing that liquidity for a business almost instantly and significantly increase a business’s success rate.
The PPP token provides great utility on the platform, allowing users to navigate and access an abundance of information.
With the token’s ability to organically grow through supply and demand, PayPie has no need to price speculate or make any promissory claims to guarantee token price to appreciate in value for investors.
The invoice factoring industry is a $3+ trillion market, and there will be a total of 165 million tokens to feed into this market.
Do you remember the days of only a limited amount of PlayStation 4s available or Tickle-Me Elmos? Let’s even use Bitcoin, as an example. what happened to the price of all those things I just listed when the supply didn’t meet demand?
Listing on major exchanges will be introduced once PayPie shows utility, passes Canadian regulation and is deemed a utility token. PayPie has been working side by side with Canadian regulators and thus far hasn’t reached any stifling situations. They have been making constant progress to legitimately get approved as a utility.
Until then, exchanges cannot be discussed but projections from the team indicate that by mid to end of Q1 2019, they will have a much clearer idea of where they stand with regulations and being listed a more liquid centralized exchange.
Meanwhile, interested investors can use decentralized platforms such as EtherDelta, ForkDelta, and IDEX to name a few, to trade PPP tokens. Personally other than lack of liquidity (which would be solved if more people get familiarized with these platforms and use them), I think they are great platforms to use once you get a grasp on how to use them.
PayPie Token Overview
- Ticker: PPP
- Circulating supply 82,500,000
- Total Supply: 165,000,000
- 27,500,000 are for team advisors, bounties etc.
- 55 million tokens kept as reserve to develop partnerships and future acquisitions
To learn more about PayPie, join the PayPie Telegram or email PayPie at [email protected]
Contributed by Christian Conte
Christian Conte has invested in blockchain and blockchain-related products since 2013. He aspires to be a full-time analyst, assessing business models and their integration with blockchain technology and helping recognize utility and functionality within the crypto ecosystem.
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