Swipe lends its license and technology for business to use Swipe’s card issuing service. The clients can either opt for:
- Standard Service
- Premium Service
As an SXP holder how will we benefit from this?
If you see based on the type of the service opted the clients have to pay 1% or 2.5% on each card transaction. The clients can either pass this charge to their users or bear the cost for themselves.
Swipe will receive that amount per transaction , paid in SXP. Now, the clients have to either hold good amounts of SXP or buy it from the market to pay Swipe these processing fees.
I am sure this processing fee also includes visa/master charges or some other network charges. But that is not the point. The point is, there will be constant buy pressure from the client’s side to pay the fee in SXP.
The other end of the announcement is equally important. @Joselito has announced that the SXP received from clients for the processing fee will not be sold and kept in Swipe’s balance sheet for a long period of time. As done by BNB.
This will create constant deflation for SXP. As clients will buy SXP to pay for the processing fee and give it back to Swipe, which the company will hold.
I think this model is as important as the SwipeSwipe & Swipe NFT burn model. The B2B vertical of Swipe is huge and rapidly expanding. Having a deflationary model from the B2B side will certainly contribute to SXP value proposition and utility.