Clicks and Bricks Terra
‘Clicks and Bricks’ Strategy to Boost Korean Users to Terra’s Blockchain
October 30, 2019
Clicks and Bricks Terra
‘Clicks and Bricks’ Strategy to Boost Korean Users to Terra’s Blockchain
October 30, 2019

A South Korean Mobile Payments DApp is rolling out a back-to-basics “clicks and bricks” growth strategy to boost retail adoption.

Terra Blockchain’s CHAI DApp is focusing on where customers actually transact to buy stuff, rather than an advertising blitz or sending an army of bots to make their case on social media.

Daniel Shin, the Co-founder, and CEO of TMON said that customers are drawn to a network of popular online merchants accepting CHAI, including one of Korea’s largest e-commerce sites TMON, which Shin founded and chairs, along with Sinsang Market, an online craft market;  and Bugs, a music streaming service.

The app claims some 500,000 registered users, with two-thirds returning monthly and repeat customers averaging $19 spent per visit. Since launching in June 2019, CHAI has posted daily figures averaging 40,000 users.

Shin said:

“It’s not like we’ve captured these users who tried it once, though it was nifty and went back to their existing products.”

Daniel Shin

However, online is set to become in-real-life, when CU, the Korean convenience store, begins accepting CHAI payment at all its 14,000 locations in December.

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Designing better payments

It has been said that according to the Terra white paper, Terra’s payment rail is built on two separate cryptos: the terra stablecoin for moving funds across the network and a token, Luna, held by miners entitling them to small transaction fees – between 0.1 and 1 percent.

Shin said:

“Terra and CHAI were meticulously designed from day one to drive mass adoption and deliver the right kind of value, to be able to drive millions of customers to use it.”

Daniel Shin

However, the stablecoin needed to outmaneuver leading digital payment rails in Korea such as Kakao and Samsung Pay.

Koreans may be embracing digital payments more than others yet a report from The Asian Development Bank Institute still indicates 70 percent of mobile point-of-sale payments are still linked to credit cards.

As Koreans are embracing digital payments reports that in the first half of 2018, 70 percent of mobile point-of-sale payments were still linked to credit cards.

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For Terra, Shin says that the advantage lies in credit card fees which charge vendors as much as 3 percent per transaction. By routing those payments through the Terra blockchain, Terra has lowered merchant fees to 1 percent or less, saving vendors an aggregate $810,000 in its first four months.

 Shin also said:

“Our value proposition is exactly what these merchants are looking for.”

Daniel Shin

Thus, Terra received $32 million in funding in Summer 2018.

Source: coindesk.com


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Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.