The current payments market is highly fragmented and complex. Many intermediaries exist, taking high fees and creating unnecessary friction at the expense of the consumers, merchants and market participants. With the total non-cash payments transaction value projected to be at $70TN* by 2025, the payments market is awaiting disruption.
We are moving to a digital world. Digital adoption, together with Alternative Payment Methods have seen explosive growth. With the development of Blockchain and Smart Contract technology, the stage is set to bring together a harmonious and frictionless ecosystem for the payments market, and drive financial inclusion.
* Electronic transactions consist of online and offline payments by credit card, debit card, pre-paid card, eWallets and mobile payments, etc.
Consumers will be able to use a large range of payment methods globally, because merchants who participate in the HAZZA network will be able to accept more payment methods online and offline.
This will make it easier than ever for consumers to access and use their money wherever they are and with the payment method they prefer.
Merchants who want to accept non-cash payments will no longer have to engage in a slow and expensive process of seeking and contracting with various intermediaries who charge fees on every transaction and only provide access to a limited range of payment methods.
Merchants will gain fast and simple access to all payment methods on the HAZZA network, while saving cost and realizing increased revenues from broader payment method access.
Hazza’s omni-channel technology will also make it easy for any merchant to accept both online and offline payments, supporting ‘O2O’ strategies.
HAZZA network will make use of the robust Global Payment System of Octo3 Limited, a leading provider of payment infrastructure technology
The HAZZA network will be built using blockchain technology
The typical payment processing integration model is very linear and dependent on the payment network company. Due to this linear model, the integration is very costly and time lengthy. HAZZA network’s Open API model takes a different approach; the payment channel integrates itself to the HAZZA network using the public API, removing the bottleneck.
Smart contracts will be used to facilitate aspects such as KYC, commercial terms, participant registry, and publishing of services. Due to the nature of this evolving technology, merchants and payments participants will see significant time savings and minimized acquisition costs.
The Foundation will evaluate the new blockchain technology readiness and leverage it for core processing when ready. This includes evaluation of off-chain state channel technologies, such as Lightning Network and RAIDEN.
The HAZZA token will be the digital currency that will underpin the HAZZA network. It will be issued on Ethereum and be ERC-20 compliant.
The token enables participants to access the HAZZA network and its services, govern the technological development of the network via the not-for-profit foundation, and utilize future token functionalities.
HAZZA Token is an Ethereum-based token that implements the ERC20 token standard.
The envisioned utility of the HAZZA tokens are the following:
ACCESS TO THE HAZZA NETWORKThe core usage of the HAZZA token is to access the HAZZA network once operational. Participants must exchange a certain amount of HAZZA tokens to access the HAZZA network. GOVERNANCE OF THE HAZZA NETWORK
GOVERNANCE OF THE HAZZA NETWORKIt is intended that HAZZA Token holders who are participants in the HAZZA network would participate in the governance of the HAZZA network by submitting and voting on proposals or decisions such as adding new features to the HAZZA network, and by selecting representatives to attend the Foundation’s annual general meeting with the Foundation’s Board of Directors.
Based on our experience, the current payments model is a fragmented and complicated ecosystem.
This creates problems for:
The existing, proven Octo3 payments solution will be migrated to an open access solution, utilizing blockchain technology, to fulfill our vision of democratizing the payments industry.
The following principles will be in mind during the development:
DECENTRALIZING PARTICIPATIONThe HAZZA network is designed to be open to any participants through the use of Open APIs
ELIMINATING INEFFICIENCIESSeamless integration is enabled through the use of Open API, which reduce time taken to join, together with the use of smart contracts
DRIVING INNOVATION AND NEW ECONOMIESSParticipants should be able to contribute new innovative solutions in order to shape the HAZZA network and develop it in a way that could benefit all participants
ENABLING FINANCIAL INCLUSIONCurrently, the unbanked population has limited access to non-cash payment methods due to limitations in banking infrastructure and high barriers to entry for credit facilities. By using the APIs connected to the HAZZA network, new solutions for the unbanked could be included in the payment ecosystem.
The platform is proposed to be based on Octo3‘s existing Global Payment System, a scalable cloud-based Omni-channel proprietary technology.
It is a certified BASE I, BASE II capable processor, and features a fully functional ISO 8583 payment switch. It is fully compliant with over 130 transaction currencies and allows full transactional oversight, covering e-commerce, physical POS, mobile POS, MOTO, coupon and loyalty programs currently. The Global Payment System has robust functionalities and the highest level of security, maintaining a PCI-DSS Level 1 certification.
Due to the potentially disruptive nature of the HAZZA project and based on our industry experience, we estimate that the utilization of the HAZZA network could help create over USD 730 billion of positive economic value by 2025 for ecosystem participants. This is primarily due to potential savings on transaction costs and the economic value of providing greater access to non-cash payment methods. The beneficiaries could include PMPs, APMs, PSPs, payment networks and card schemes, merchants, terminal manufacturers and others in the payments communities.