Bitwage is part of the Orange Fab-San Francisco Season 5. Jonathan Chester, the Founder and Chairman, explains what Bitwage’s business is all about.
JC : Bitwage is an international payroll solution for paying freelancers, contractors and remote workers. Our solution combines mobile and Cloud technologies with blockchain* technology in order to create a powerful new system that is *modernizing the payment experience while dramatically increasing payment speeds.
How does it work?
JC : We are leveraging the blockchain technology. This is a new financial technology that has the opportunity to be as revolutionary as the Internet.
Bitwage is primarily a new database mechanism, which creates a high level of trust between entities, which did not exist before. This makes it ideal for financial applications, which previously had a large number of issues with trust, and required “middle men” to build trust. This was the time-consuming and expensive aspect of the money transfer process that was previously used. Furthermore, it did not really make sense for the transfer of small amounts of money, for instance.
Our solution targets “mid-sized” institutions, i.e. companies employing between 2 and 100 employees. Bitwage currently has users in over 90 countries.
What is the “wow factor” offered by Bitwage?
JC : Blockchain is the leading protocol. It is public. Anyone can use it. We created relationships between approved financial institutions, and have designed our own messaging layer in order to streamline the process for sending payments between each institution, but with a lower level of investment, while offering a much higher transfer speed. A process that took seven days is now turning into a one-day process.
What is your business model?
JC : We currently generate our income from the spread on the transaction; however, in the future, we will be charging based on a SaaS model for features like higher-transaction volumes, higher insurance coverage, better customer support, and access to functionalities.
Last but not least?
JC : We are modernizing the payroll experience. We are taking it to a new level. This is really about speed.
We are working with the connectors and the decision makers. This is what companies really want.