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.
“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.
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.
“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
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.
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.