A long time ago...

Do you remember manual credit card readers? The swift click'd clack as your details were embossed on carbon paper? Back then the merchant would take your details to the bank and request some amount of money from your bank account. They would pull money from your credit card account.

A clever idea, for it's time. Because a credit card was used the merchant was almost guaranteed payment - your financial sufficiency was backed by the credit company. You didn't need to carry large amounts of cash.

The merchant would talk to his bank, who'd talk to your credit card company, who'd talk to your bank. Eventually the needed money would be sent from your credit card account to the merchants bank account via a national settlement service.

Current electronic payment systems use essentially the same process, except that computers rather than people talk to each other. They're obsolete. We can do much better.

Instant Payments

When you hand money to a merchant they can see, instantly, that they have your money. Credit card payments take time to process. They don't know if they'll be paid and you don't know when they'll take your money. There is no need for this.

Because of the number of people involved, credit card payments were slow. Even now, when computers have replaced people for settlement of payments, credit card payments are slower than cash. This is due to the use of out of date technology and processes.

Yura uses modern IT to make electronic payments happen virtually instantly. If text messages and emails can be sent and received in real time, the same technology can certainly be used to send confirmation of a payment.

Just like cash, with Yura when someone pays you, you'll receive confirmation in less than a second.

Cheaper Payments

When you hand cash to a merchant it costs you and them virtually nothing. When you pay with a credit card it sometimes costs you money, but it always costs the merchant money. These fees should be much much smaller than they currently are. One component of these fees, interchange fees, have been the subject of extensive review by the RBA, essentially because they are stubbornly too high.

By designing a payment system from scratch it is possible to avoid requirements that were only needed decades ago. This allows Yura to charge at least 50% of current transaction fees. Often Yura will offer a much larger saving.

Extremely small fees, combined with efficient methods of payment allow Yura to open new markets. Imagine being able to pay $0.10 to read an article online instead of paying a large subscription or being assaulted with adverts.

Push Payments

When paying with cash you give the money to the merchant. When you pay with a credit card you give the merchant permission to remove money from your account. With cash you push payment to the merchant. With a credit card the merchant pulls payment from your account.

The pull payment nature of all electronic payments, not just credit cards, makes them vulnerable to fraud. They reduce your ability to control your spending. They also require time to process simply because the merchant needs to contact your bank and request payment.

There is no reason to use pull payments anymore. Almost all people have sufficient computing power carried on them to transfer money from one account to another.

Yura rejects pull payments and uses a push payment model for payments. Yura is inherently more secure.