Flexa claims to be the “fastest, most fraud-proof payment network in the world” and is made of three components: When used with Flexa, Amp is particularly efficient at solving issues plaguing most merchants. Amp can collateralize any digital asset, whereas the Lightning Network mainly serves to solve scalability issues for Bitcoin. This is also where it differs from Bitcoin’s Lightning Network as a payment solution. How Does Amp Work?Īmp’s use case is unique because it can be used as collateral for any digital or physical product. The Flexa Network uses AMP to make quick, irreversible and secure payments for a wide variety of currencies and assets. AMP is a digital token that can be used as collateral for any type of value transfer. This creates the potential for centralized organizations and banks to block card payments, or in extreme cases even confiscate a user’s money. Ethereum currently also faces issues with scaling and high gas fees, so it’s just as impractical - at least for now.Ĭrypto cards are also built on top of the same 1970s legacy systems most use Visa or Mastercard systems. Price volatilitymeans that a transaction’s value could change significantly within this long transaction time frame. Bitcoin’s current average transaction timeof 10 minutes per transaction is impractical for merchants. What Is Amp?Ĭonsidering the hassles involved in these transactions, why don’t we abandon fiatand just use crypto? Well, new problems could arise. Back-end payment processing has changed little from then to now. The majority of transactions today occur on a payment system that was created in 1979. These costs are especially severe for small businesses that don’t have systems in place to detect fraud or security breaches.Ĭard transactions involve numerous back-end processes. In 2020, card fraud accounted for $32 billion of losses, while card chargebacks cost merchants 1.94% of all transactions. By accepting traditional card payments, merchants sacrifice roughly 3-4% of each transaction to fees.Ĭard fraud and chargebacks also result in unexpected expenses. This leads to greater processing costs, and in turn, higher fees.
In reality, a complex back-end system is processing up to ten steps (see diagram below). However, popular payment systems such as Visa and Mastercard come with high costs for merchants, who must deal with transaction costs, chargebacks, and card fraud.Īfter a card is swiped, the transaction may appear to be simple and instant. How does AMP solve Problems with Traditional Paymentsĭigital transactions have long been used in global commerce.
AMP trades at $0.042 with a capped supplyof around 99 billion tokens for a currently circulating market cap of $2.6 billion. Launched in November 2020, Amp (AMP, previously known as Flexacoin) is an ERC-20 collateral token that facilitates instant and verifiable assurances for value transfers and real-world applications. What is AMP: Collateral for Instant and Fraud-Proof Payments
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