PayPie allows for analysis of financial statements on the blockchain, and promises to introduce the most accurate risk score algorithm ever created.
SUMMARY.
- Project name: Paypie.
- Token symbol: PPP.
- Website: https://www.paypie.com/
- Whitepaper: https://www.paypie.com/Content/files/PayPie-Whitepaper.pdf
- Crowdsale date: Oct 15th SUN to Nov 15th WED
- Token distribution date: Instantly.
- ICO Hard cap: $27M.
- ICO Soft cap: $1.5M.
- No of tokens being sold at ICO: 82.5M PPP tokens.
- Percentage of total supply: 50%.
- ICO price: $0.033 @ PPP.
- Payment methods: Ethereum (“ETH”).
- Presale: Sign up here.
- White list: None.
- Escrow: ?
- ERC20 token: Yes.
- Role of Token: Utility token.
- Blockchain: Ethereum.
- LinkedIn Company Profile: 2-10 employees.
- Twitter: 1941 followers, 111 tweets..
- Facebook: 817 likes, 111 posts.
- Slack: 458 Members.
- Telegram: 437 Members.
- Country of origin: Canada.
PROJECT OVERVIEW.
PayPie solves the problems of fraud and inaccuracies which exist in closed accounting systems by allowing for live analysis of financial statements on the blockchain. This is intended to facilitate the determination of credit risk in lending operations; PayPie promises to introduce the most accurate risk score algorithm ever created.
The platform offers credit risk assessment, real-time audit, and invoices marketplace, which will all be based on businesses all-time historical accounting data.
- The credit risk assessment will enable financial institutions to make better informed decisions when lending or financing businesses.
- Real-time audit will allow businesses and accounting professionals to identify inconsistencies and opportunities as soon as they occur.
- Invoices marketplace will create a space for businesses to get healthier cash flows and for third parties to invest after profits.
BACKGROUND.
Risk score analysis is at the core of most major industries within the financial sector, such as financing, compliance, auditing, credit insurance, and review. The market is enormous and nearly all SMEs undergo through a risk score check at a given time.
Despite being vast, the risk score market for business is permeated with discrepancies and inconsistencies that create a challenge for the third parties vetting them. Fraud and data manipulation are between the main symptoms of that panorama.
Enter PayPie. PayPie will bring the definitive answer to the unreliability of this fractured system with its unique risk algorithm. This algorithm is based on blockchain triple-entry accounting, which guarantees that the risk score is accurate and fraud-proof.
PayPie is an offering from parent company SlickPie. SlickPie is a cloud-based accounting solution for small business founded in 2015 out of Vancouver, Canada. SlickPie’s accounting software helps its user’s record, track and reconcile income and expenses through an online dashboard and allows customers to tailor the look and feel of their invoices to better fit their company brand.
During production of SlickPie’s proprietary invoice and payment account software, there was an extra focus on the upcoming decentralized revolution leading to the development of accounting software for web 3.0, and that solution become PayPie.
PayPie plans to utilize the SlickPie platform by syncing with its current accounting logic and source code to store journal entry and other accounting data. This will cut down on time needed to bring the PayPie platform to production and will effectively create a triple entry accounting system far surpassing the current double entry accounting system that was invented more than 600 years ago that has hampered many small business and prevented invoice financing on real time invoice data.
HOW IT WORKS.
Even after having so many businesses on the cloud, there is still no easy way for lenders to access & trust financial data to provide required liquidity to them. They still take business data from ERP software in PDFs or excel sheet and then someone enter it manually in the software. This is such a dull, slow and out-dated process and hard to believe that business is still done this way today in 21st century.
If you are a business owner, this is all going to change starting with PayPie because it will have all the information about your business that can help solve your liquidity problems. Paypie knows your customers, vendors and employees. Paypie knows how much is your payroll and which bank or service you use for salary payments? PayPie knows about your bank because you connected it for live bank feeds. How much debt you must pay this month and how much is your installment of the line of credit that you opened with your local bank? You may not know exact figures but your financial software does.
Paypie will analyze all the above information and many more data points to build an algorithm for the credit score of your business. You can take this information and go to your bank but wait. Why go to a bank when you can have liquidity right inside PayPie, powered by Smart Contracts? Paypie’s token holders will look at your credit rating and can do the same thing that a bank does for you but in a way more seamless, easy and secure way.
FEATURES.
Paypie platform.
PayPie is the definitive decentralized accounting platform for reliable risk score analysis. The platform is based on the idea that by introducing blockchain to the Slickpie accounting software not only will there be a large decrease in the duplication of efforts, transparency will be increased and fraud will be minimalized.
Putting each journal entry on the blockchain which will not only give PayPie higher visibility than banks on the health of the business but will create a platform for invoicing lending based on their Risk Score Algorithm.
PayPie will add API integration with likes of Xero, QBO, Sage, SAP, NetSuite, etc. to fetch journal entry, and other accounting data from different ERP software. Building strong partnerships with major accounting and ERP systems is a major aim of their overall marketing strategy.
Marketplace.
One of the core parts of PayPie is its marketplace, which is a comprehensive space for SMEs, buyers, lenders, and investors to offer and find financial opportunities secured by PayPie’s unique risk score algorithm.
The Marketplace will especially allow SME’s to address one of the biggest challenges faced by small businesses today. The struggle of remaining cash flow positive to create new opportunities, implement existing plans, pay salaries and manage working capital. Currently most business get paid only after 90-120 days which can cost them billions in lost opportunities. With a unique Risk Score, visible by Banks and lenders, cash can be given to the business against outstanding sales invoices instantly by an investor at a cost that creates a solution where everyone benefits.
Not only does the marketplace provide a place to find and access easy lending, but a platform to manage the downstream processes related to accounting, finances, insurance premiums and audits.
Trust rating system.
To prevent defaults, all parties involved will be able to rate each other at the end of the transaction and this history will be recorded on the immutable Ethereum blockchain to build a Decentralized Trust and Transparency Rating (DTTR) so that others can make well-informed lending decisions. Smart contracts will automatically amend each party’s trust rating according to an algorithm after completion of the lending process.
Privacy.
PAYPIE platform offers privacy protection mechanism as every transactions are encrypted and only important data are published. On the other hand, access to detailed financial data can only be granted by the company to lenders, auditors, regulators and managers as the need arises.
UNDER THE HOOD.
Blockchain Technology.
Blockchain is a distribution list or ledger of transactions. It is decentralized, transparent, and updated in real time. The blockchain is essentially impossible to hack or distort. A host of revolutionary financial practices emerges from that simple idea. There is even the possibility that many financial roles and services currently provided by fee-charging firms will become obsolete.
With blockchain accounting, all accounting and auditing will take place at lightning speed, in real time with transactions. PayPie is powered by Ethereum blockchain to create a decentralized public ledger that guarantees the authenticity of all past, present and future transactions on the platform. All-time historical relevant financial information based on journal entry of participating businesses will be hashed out in a single ledger to build transparent track record.
The decentralized single-ledger approach will allow the platform to build an entire blockchain-backed accounting ecosystem for risk score assessment involving third parties, centralized accounting software, financial players, and a transactions marketplace. The ledger will save time, cut costs (elimination of payment processors and back office staff) and improve agility for potential business opportunities based on increased visibility.
Not only that but regulators can be tied in to have access and prevent costly audits which can cost thousands of dollars and hours of time.
Smart contracts.
Each transaction on the marketplace goes through a smart contract that includes seller, buyer, price and other details. It’s digitally signed & IPFS hash links to further documentation.
Triplet-Entry Accounting.
Accounting today is double-entry (financial records are kept in duplicate, one at the client and another the customer). Since the Renaissance, this has provided some measure of security to financial transactions. Blockchain promises what can be called ‘triple entry’ accounting, with both sides of a transaction being automatically recorded at the same time.
Risk Score Algorithm.
Once company data is on the blockchain and synched in with PayPie’s platform, it can begin to fully utilize the proprietary Risk Score Algorithm that will be developed in 2018. As PayPie’s powertrain, the algorithm feeds reliable financial data from businesses and third party applications to marketplace players through the blockchain. The algorithm is constantly adjusted depending on changes to more than 150 business data points.
IPFS.
IPFS is a distributed file system that seeks to connect all computing devices with the same system of files. IPFS could become a new major subsystem of the internet. If built right, it could complement or replace HTTP.
With IPFS, each file and all of the blocks within it are given a unique fingerprint called a cryptographic hash. IPFS removes duplications across the network and tracks version history for every file. Each network node stores only content it is interested in, and some indexing information that helps figure out who is storing what. When looking up files, you’re asking the network to find nodes storing the content behind a unique hash.
GITHUB.
No activity.
INTENDED USE CASES.
Invoice marketplace.
Invoice financing is a way for businesses to borrow money based on amounts due from customers. With invoice financing, you are pre-selling your unpaid invoices to another company in exchange for a lump sum payout. Paypie marketplace will benefit:
- Lenders e.g. banks, financial institutions, investors, invoice factoring companies, etc. On PayPie, you can help fund other businesses while being rewarded for your efforts, essentially replacing banks for that matter. PayPie will handle KYC and regulatory issues and will ensure you finance businesses with empirical evidence of stellar financial health.
Lenders will require PPP Tokens to access the PayPie platform. For example, if you are buying a bill from business X at a discounted price so that their customer, business Y can pay you the full invoice amount at payment deadline - let’s say 120 days from now - will cost you XXX amount of PPP Tokens.
- Conventional invoice factoring companies in developed countries charge around 2.5-4% for a 30 day credit and sometimes the origination fee can make the entire process enviable. But this situation can be even worse in many other parts of the world. In Brazil, for instance, the ongoing rate can be anywhere between 8% to 12% per month. Same can be said about India, Philippines and most of the countries worldwide. Paypie offers a faster, safer, and cheaper lending alternative to the current legacy systems.
Accounting professionals.
The other main beneficiaries of PayPie would be accounting professionals. They will benefit from the end of duplicate data entry, automated reconciliation and automatic audits. Many businesses spend anywhere from 5 hours to 20 hours per week just reconciling their accounting records. Single Ledger will put an end to this practice and cost reduction will be potentially enormous. Audits will become much more analytical, at least semi-automated, and even continuous, a dream come true for CPAs who charge $300-400/hours for a service like this.
Credit score analysis.
PayPie can be used by any company, bank, insurance company, financial institution, credit union, or even government that needs to undertake or to perform a credit score analysis for operations involving financing, lending, and investing decisions. Risk analysis explained in short: when you want a credit, a loan, a mortgage or similar, a company rates the chances of you being able to actually pay for it. In order to do that calculation, the business you’re dealing with will query PayPie - so they decide to work with you or not. The parameters needed should include your incomes, your current loans and similar data.
Auditing.
3rd-party financial audit & review data, accounting firms, and Government.
Tax.
The global tax offices get an easier job with blockchain accounting. They don’t even need to connect the dots anymore. Think about all those expensive, delicate IT systems they have to use now to combine shards of information. Think about the salaries to pay the IT contractors who build and maintain those systems. PayPie could branch out to tax offices in the future, unless they are beaten to it by another blockchain company.
ROADMAP.
HOW ADVANCED IS THE PROJECT?
Over 50% of the platform is already built, which comprehends the entire end-user accounting part of PayPie. The working prototype is in the form of their accounting software Slickpie, that allows users to manage their businesses with ease and convenience. SlickPie will be integrated with PayPie Platform.
PAYPIE TOKEN.
PPP powers the PayPie ecosystem. They are ERC20 compliant and are compatible with Ethereum wallets.
PPP Tokens are limited utility-based tokens and provide contributors with the ability to access certain services on the Platform, such as accessing the Platform, transacting in the PayPie Marketplace, accessing the 100% accurate risk score algorithm analysis, obtaining credit histories and scores of private businesses, performing financial audits on private businesses, buying invoices for factoring purposes, and otherwise transacting within the Platform. PPP is also needed for Third Party Access for API.
The normal consumer will be able to participate in the PayPie pool. The pool will buy invoices at a discounted rate & provide SME with the money within 24 hours while waiting for the customer to pay the pool original amount as per the term sheet. Once the lending process is complete, the original amount you invested is returned to you + net profit.
Token supply and distribution.
- Total Token Pool Size Including Reserve: 165,000,000 PPP
- Maximum Total Token Amount Dedicated for Crowdsale: 82,500,000 PPP. If maximum Token Crowdsale amount is not entirely sold, the remaining will be allocated to the reserve and used accordingly when needed.
- Team and Advisors: 27,500,000 PPP allocated to the team will be locked up for a period of 12 months. This ensures that the team solely focus its effort on making the PayPie platform grow.
- Industry Reserve: 55,000,000 PPP locked up for one year and, when unlocked, will be used for to developing partnerships and future acquisitions for the PayPie platform to prevail as a market leader. No extra tokens will ever be minted.
Value of PPP.
Being a utility token ensures that PPP will have a use from the offset which gives it intrinsic value from the beginning so it’s demand will grow, thus the value should also increase as there will be a limited supply available on the markets. The desire to use the PPP token on the Paypie Platform will be the driving force for high demand of this token of value.
PieCoins.
PieCoins will be another type token in the PayPie platform that will handle all payments in the marketplace and will be pegged 1:1 to the currency used by the end user. Although there isn’t much detail provided in the whitepaper regarding these PieCoins, it is a positive sign they are thinking long-term about the validity of the platform, and how if there is too much volatility it may decrease the amount of SME’s that latch on to the platform. Using PieCoins, any profit that token holders earn will be in this PieCoin which can be converted to the US dollar in a 1:1 ratio. PayPie will handle any other conversion differences.
OPPORTUNITIES.
- Invoice financing, audits, credit scoring market opportunity is $3 Trilion US with yearly growth rate of 11-12%.
- USA economy alone process over 3 billion invoices in one year.
- Over 100 million businesses use accounting software.
TEAM.
The PayPie team is carefully assembled with a comprehensive set of experts with decades of experience in the Fintech industry. Among the team members there are talents that have contributed with and worked for global powerhouse organizations such as Microsoft, Ethereum, Coca Cola, GE, American Blockchain Council, SlickPie, Citrix, Forbes, Bosch, SAP, Oracle, IBM, Deloitte, KPMG, Barclays, and Bank of America. This includes entrepreneurs, engineers, developers, accountants, lawyers, journalists, and marketers with a proven record of success and in-depth expertise in the fields of technology, financing, banking, accounting, risk management, and blockchain.
PARTNERS.
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COMPETITORS.
- Similar to Experian PLC (24 USD, 18.65B), Equifax (107.65USD,12.96B) and TransUnion (47.48USD,8.64B) now the status quo used for credit management/credit risk assessment.
- The are other projects like Fizcal which plan to use triple entry accounting via the blockchain. Paypie’s advantage is mainly the algorithm which calcultate the credit risk. Unlike Paypie Fizcal don’t want to use Ethereum due to scalability. Fizcal launches its ICO on 2nd
- But there are projects like ETHLend, a fully decentralized peer to peer lending Smart Contract which runs on the Ethereum blockchain and uses digital tokens as collateral. ETHLend plans to develop a protocol to enable AI and Big Data to assess Credit Risk for their platform. Token Sale ICO starts on 25 November 2017 at 12 GMT.
- Similar to Populous without the credit scoring algorithm part. Populous is a smart contract invoice factoring platform on the Ethereum blockchain. Populous is trading at $2.44 since its June 24th
- Hero token is another, its mission is to revolutionize the banking industry to make credit more readily available and affordable for the unbanked or underbanked, starting in Southeast Asia. Hero builds up a credit score and credit history for the customer, for their pawnshop system and also for the banks out there. Paypie, does the same, just its target are more the business sector. It’s presale has been delayed.
How is different than other platforms in the space?
Compared to other projects related to accounting, Paypie seems to focus on the algorithm used to assess credit-risk as the main interesting feature, and that could interest a lot of companies.
PROS.
- They have a great team including Ethereum founder, Anthony Di Lorio.
- The team have past experience in the same field eg. Slickpie founder Nick Chandi.
- PayPie will offer data better than banks on the financial health of a business which is very valuable for lenders, investors, banks and other financial institutions, auditors, reviewers etc.
- Paypie will create a long-awaited trustless credit rating environment in which businesses won’t have to rely on biased analysis.
- Paypie will offer a platform to analyse a huge amount of data.
- 55,000,000 reserve tokens are available for partnerships and to solidify the strong ecosystem it is trying to build. It is impressive that they have dedicated such a big stake of tokens to increase awareness but it remains to be seen if any partnerships have been agreed upon.
CONS.
- Among the first accounting Platform at the Blockchain, which might bring risks.
- Banks and big companies could use the technology, but Paypie has not announced any partnership with a big company yet.
- Companies could make fake transactions with other parties that will just have the purpose to give a positive rating to boost the trust rate.
- One threat is that (small) businesses don’t want to adopt blockchain accounting, because they are afraid opening their books to prying eyes may harm their business. For example, if a retailer publishes their suppliers and wholesale prices, the competition may undercut them.
- Credit scores aren’t really a (big) thing, in most other countries.
- The reliability of the algorithm is still questionable. They should give some demo of the platform showing its reliability.
- No Github activity.
