New York-based Flexa was founded in 2018 by Tyler Spalding, Trevor Filter, Daniel McCabe, and Zachary Kilgore. The startup aimed to restructure the transaction system and make it more user-friendly efficient and fast. They also wanted to replace the existent payment system with a more innovative and secure payment system.
Along with the highly experienced team in consumer payments, they raised heavy funds as much as $14.1 million and launched their first application SPEDN in May 2019 to facilitate the customers to pay by cryptocurrencies to the retailers. It studied the loopholes in the existent payment system and reinvented it completely with the adoption of crypto-based payments.
The facility had been started by the consensus of Coindesk for secure and fast payments at major retail outlets in the US. This app is compatible with top digital currencies including the Ethereum, Bitcoin, Bitcoin cash and Gemini cryptocurrencies.
SPEDN is a custodial cryptocurrency wallet built on the open Flexa network and can be downloaded from the app store. It has been integrated with payment authorization codes that use the barcoding system at the point -of- sale with the member retailers.
How does it function?
It makes it convenient for both the parties to pay and receive the payments. The payment retailers don’t have to install any special hardware to accept the crypto payments. Simply when a customer proceeds the transaction, SPEDN generates a barcode, which can be scanned by the cashier. The payment receiver just has to configure the scanner to read the SPEDN code. If for some reason, the crypto payment is not received, the customer can pay by cash as well.
Flexa has some very high profile retail customers liker whole foods, Regal cinemas, Bed Bath and Beyond, Nordstrom, The Crate and Barrel, Baskin Robbins, GameStop, to name the few.
Within a year, SPEDN has developed a wide network of 30, 475 retailers via Flexa network who are readily opting for the cryptocurrency-based payment.
As the payments are made directly by the consumers to the network, it reduces transactional costs and the risk of frauds as well. At the retailer’s end, payments through the cryptocurrencies are automatically turned into fiat currency US dollars. While proceeding the payments, the system balances between the fiat currency and the cryptocurrency through the neutral collateral token Flexacoin.
Flexacoin is an ERC- 20 token on the Ethereum blockchain, which functions as a means for liquidity processing the real-time transaction.
Flexacoin acts as an intermediary between the retailer and the network. When the transaction proceeds further, it gets finalized on the blockchain. The retailers are not affected by the volatility of the cryptos as they get the fiat payments operated by the Flexacoin liquid collateral.