Swipe B2B business model & SXP utility

Card Issuing

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.

Doctor,
Do you know if Binance or FTX is currently paying the 1% fee for all the card usage?

I couldn’t find any verification or clarity so far after 30 mins of googling around.

They (Swipe’s “clients”) could very well cover the fees on the back-end to encourage adoption at the start.

But the Swipe team receives 76 million SXP throughout multiple years, that’ll cover plenty of tx fees, as I’m expecting that the business to business remains business to business. I’m personally not expecting any “temporary buy-backs” any time soon.

DoctorDefi: Do you know how the 40% SXP token reserve is released into circulation with the latest whitepaper?