Stacks Partners With South Korea’s Ecommerce Protocol Paycoin to support transactions with its currency STX.
This integration means that merchants who welcome Paycoin will soon accept STX and Bitcoin as payment methods, the Pile foundation, which builds apps on top of the Bitcoin blockchain, announced. Companies that accept Paycoin, such as Domino’s Pizza, KFC, and 7-Eleven, will allow customers to transact in these cryptocurrencies.
There are 1 million users of the Paycoin app and 70,000 companies that accept this cryptocurrency.
Users can own STX and collect Bitcoin returns in the app, Stacks said in its statement. This encourages users to transact in STX in order to get digital currency rewards for continuing to spend in the app.
The partnership of Paycoin and STX will allow businesses and consumers to use cryptocurrency every day, according to the Paycoin Blog. All transactions will take place in the Paycoin app. This compartmentalized process allows for greater ease of digital currency transactions, which for some has hampered participation in blockchain technologies.
Paycoin is a blockchain payment project whose goal is to achieve high-efficiency transactions for businesses and consumers. It is a subsidiary of Danal FinTech, a South Korean company specializing in mobile commerce solutions.
According to Mitchell Cuevas, head of growth at the Stacks Foundation, the integration will inspire business owners to accept Paycoin because it will reduce “friction with the preloaded wallet”. He claims there is a “gravity to holding money in one place to participate in rising assets,” such as bitcoin returns on STX holdings.
Compared to the South Korean stablecoin Terra, which has a proven track record in the country, STX and Paycoin are much more volatile. According to Cuevas, their respective uses depend “on the level at which the user is risk averse.”
“Korea is one of the most regulated crypto markets,” he said, and substantial confidence in the coins is essential for successful integration.
“What’s important in these markets is utility, the things you can spend [STX] on, not just a black box that’s in a wallet, ”he said.