Yosemite X, a technology company which developed a public blockchain platform that is based on fiat currency, today announced the launch of Yosemite Card, a 0% transaction fee credit card.
The card, which has been adopted by merchants throughout Palo Alto, will yield 2-3% annual savings on transaction costs for merchants. Some of these savings are then passed along directly to the consumer in the form of rewards programs.
With an average charge of 2% for transaction fees, merchants were burdened with $55.4 billion from Visa and Mastercard transactions. With the two industry giants expected to increase fees in April 2019, consumers will likely see higher prices from merchants who traditionally raise product costs to mitigate transaction fees.
The Yosemite Card bypasses credit card processing fees by directly connecting cardholders and merchants. Safely storing credit transaction records on blockchain instead of servers of large financial institutions, Yosemite Card eliminates the need for intermediary services, allowing for a transaction fee that starts at 0% for merchants.
“The card payment industry is following an outdated model that is hurting merchants and consumers, and we saw an opportunity to provide a tangible solution to both. With the development of technology that can facilitate credit transactions without as many intermediaries, there’s simply no need to insist on using the outdated system. Yosemite Card is a completely new credit card system that directly connects merchants and customers.”
As noted above, when Yosemite Card users make a purchase, the costs associated with large transaction fees are reallocated toward native customer loyalty rewards. This model rewards the consumer, helps keep funds within the merchants’ ecosystem, and drives repeat business. This reward system is natively provided within Yosemite Card at no additional cost, allowing merchants to benefit more with less cost.
“We started accepting Yosemite Card because we were tired of excessive card transaction fees eating at profits when a better option exists. It’s truly exciting to partner with a company driving innovations that streamline our business and save us money, without sacrificing customer satisfaction.”
Yosemite Card will continue its rollout in Palo Alto, California with students from Stanford University, in addition to its existing merchant partners.
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