Stack Adding Crypto Payments to Digital Wallet with STK Token
Stack is powering users to pay with cryptocurrency at any point-of-sale system through its smart digital wallet.
The Toronto-based fintech company has partnered with STK Global Payments to support the exchange of STK tokens—a blockchain-based currency—through Stack’s mobile payment options. Stack said the move makes them the first fintech company to enable instant and contactless mobile cryptocurrency transactions.
“We’re working towards a universally accessible alternative to traditional banking that allows you to store your money safely, access it instantly and transact with it anywhere, in any currency, including cryptocurrency,” said Stack CEO Miro Pavletic in a release. “The STK token will simplify the blockchain process so that you can use cryptocurrency as easily as you would a debit card or cash.”
Stack is a personal finance platform that allow users to manage their money from a smartphone app—without the banking fees. Currently in private beta, Stack is expecting to launch nationally by the end of the year, followed by a U.S. expansion in early 2018. In September, Stack announced a partnership with Mastercard that added a mobile tap-to-pay option to the digital wallet app.
STK’s blockchain payment solution can be implemented globally, but Stack will be the first company to harness the technology. Stack published a white paper explaining the behind-the-scenes technology and their decision to add crypto payments.
With the addition of cryptocurrency payments, Stack app users will be able to use STK tokens for transactions at both brick-and-mortar and online stores–no traditional currency exchange required. Stack said they partnered with existing payment networks that will allow the cryptocurrency wallet to be used at 39 million merchants worldwide.
“STK aims to break down the cryptocurrency usability barrier and make crypto as familiar to use as traditional payments, all with no fees and no confirmation delays,” said Ethan Wilding, co-founder of Ledger Labs. Wilding is also a founding team member of the Ethereum blockchain.
“To do this they are leading the way by implementing a cutting-edge Ethereum blockchain technique called State Channels; this technique will become the standard for many types of cryptocurrency payments,” he added.
The company is currently working with token-payment prototype and said they’re on target to launch the cryptocurrency solution by the end of 2018.
STK is launching a token generation event on October 25, making the STK token available for purchase online until November 3. Each token will be sold for $0.20 USD, and Stack is offering 550,000,000 STK tokens for sale. Money generated from the token generation event will be directed towards the integration of STK with STACK, the operation of crypto to local currency exchange, and developing solutions for both iOS and Android devices.
While Canada will be the first country to tap into Stack’s crypto wallet, the company said strict regulations from the Ontario Securities Commission prohibit the token generation event from being open to Canadians. Waterloo-based Kik ran into the same issue last month when the company launched the initial coin offering for Kin, an Ethereum-based token.