Plutus: A new way to pay for Bitcoin contactlessly

     A new Bitcoin app has joined the crypto space, and people are very excited about the concept. We all want a world where we can use Bitcoin, but there aren’t enough merchants that accept it. A new service called Plutus hopes to solve this problem by offering a digital currency platform that uses contactless technology through their wallets. The Plutus team says the service is easy to implement:

     “Just load a small amount of money onto your phone and when you get to the store you’ll be able to spend it effortlessly.”

     The product is in beta and people can sign up to join our beta team right now. A Plutus assistant said the service is expected to be launched in the first quarter of 2016. The system works as follows: Bitcoin is deposited into the Plutus wallet; traders on the platform's DEX network accept digital currencies, which are allowed to be used at any Tap & Pay merchant; merchants receive fiat currency directly from the host trader's virtual card. Like other Bitcoin services, the system acts as an intermediary, but uses an additional contactless payment option for settlement.

     Other wallet services such as Mycelium have already implemented contactless payments. Circle has enabled near-field communication (NFC) technology for their customers on the Android platform. As early as November 2014, BitPay also released a merchant application that uses NFC payments. The main difference between Circle and Plutus, which use NFC payments, is that it uses a decentralized exchange for transactions. A Plutus spokesperson said: "Plutus reduces counterparty risk, provides liquidity, and has many other benefits. We want to ensure that users do not have to rely on us as a middleman."

     Many people have been eagerly waiting for an app to bring Tap & Pay technology to the Bitcoin space. The Plutus team believes that just because merchants are not accepting the technology fast enough, it doesn't mean that users should suffer. They said: "The problem now is that Bitcoin suffers from the chicken and egg problem. If there are not enough merchants, then Bitcoin will have a hard time becoming mainstream. But without mainstream use, merchants will not have enough motivation to accept it." The Plutus team said they want to change this problem and decided to solve it by integrating their technology.

     Tonight, Bitcoinist spoke directly to representatives from the Plutus team, who told us:

     “It’s still a noteworthy celebration in the Bitcoin community that merchants are starting to accept the digital currency. It’s a pretty difficult achievement, which is why we decided to create something unique - Plutus. An NFC-enabled virtual debit card, funded by a decentralized network of traders, where you can exchange your Bitcoins. You simply deposit money and spend effortlessly when you get to the store.”

     Complete "circumvention" solves this problem, they find the obstacle and create a way around it. They use the existing infrastructure to let Bitcoin users know many places that offer Tap & Pay solutions. As of this year, many merchant card machines have been replaced by contact chip verification systems. With a lot of research in this direction, Plutus believes that it is only a matter of time before we become a completely cashless society.

     Plutus developers are now testing the product in its infancy, hoping to get feedback on how the system works. Those planning to test the product should be aware that the Alpha product is not completely stable and should be handled with caution. The Plutus team says on the sign-up site that "progress to become a founding member". As more people comment on the product through the forums, they will get a large wave of testers to test the service. One thing is certain, people want to spend their Bitcoin.