Graft is an open-sourced, blockchain-based, decentralized payment and processing platform providing integration of cryptocurrency with point-of-sale (PoS) payment systems. The Graft system works by processing payments similar to traditional electronic payments system such as credit, debit, and prepaid cards. This will allow stores (i.e., merchants) to use their existing PoS system to connect to the Graft system in order to allow a seamless integration of cryptocurrency with current PoS payment systems.
Historically, when a customer shops at a store and buys goods and/or services using a credit, debit, or prepaid card at a PoS terminal, a centralized intermediary such as a payment processor is needed in order to facilitate the transaction between the buyers and merchants. This process is inefficient and costly. For instance, stores are generally charged 2-5% for each transaction and the funds are not available for 2-3 days. This may not seem like a lot but if you think about big brick and mortar retail stores such as Wal-Mart these charges can accrue very quickly. In fact, many such companies have been known to charge merchants excessively high fees due to their market dominance within this space. For example, VISA has been involved in several ligations involving charging merchants high credit card fees, and resulting in higher costs for good and services for consumers. This is because merchant fees are often pushed onto the consumer in terms of higher prices for goods and services.
Currently, the problem with cryptocurrency is simply the barrier to access and high transactional fees. For instance, in order to purchase cryptocurrency one must create an account on an exchange, purchase the cryptocurrency, then transfer the cryptocurrency to a wallet. This process is not only expensive but offers little benefit other than a store of value, at present time.
Whereas, integrating current PoS systems with Graft will allow people to buy every day good and services with cryptocurrency and negate the high transactional fee. This can be achieved by eliminated the need for centralized intermediaries as shown below.
Thus, all in all, effectively allowing mass adoption of cryptocurrency by reducing not only the barriers to access but also increasing the functional uses of cryptocurrency.