Settlement service provider
Last updated
Last updated
Settlement service providers offer flexibility in dKargo’s platform. They convert DKA tokens with fiat money and also fill the time gap between when the payment order was placed and when the final settlement was made. Participants can select settlement service providers to settle the balance when there are different preferences for the payment methods between the parties. In this case, dKargo will include the settlement service provider in the smart contract to ensure that each party will receive payment in the manner of their choice. For example, if a service user wants to pay by credit card and the service provider wants a portion of their payment to be made in DKA tokens, the settlement service provider will receive the full payment via credit card. The settlement service provider will then pay the service provider in the payment method of their choice. Each settlement service provider will decide what their conversion rates and settlement fees will be, and participants can select the settlement service providers of their choice. Competition among settlement service providers will help provide more efficient service to platform participants and users.
Settlement service providers earn revenues through settlement fees and arbitrage trading of when a payment order is placed and when the actual payment is made. Logistics service by nature can be very time-consuming. Which means, that there can be a big time gap between when the payment order is placed and when the actual payment is made, which creates room to develop new revenue models based on various financial techniques. This allows settlement service providers to test many business models and hence, provide an efficient settlement that fit the needs of each participant.
dKargo’s settlement service providers must handle both DKA tokens and fiat money. So, it is likely that existing cryptocurrency market players such as cryptocurrency exchanges and financial institutions with existing payment structure will be the biggest participants on the platform’s early stages.
