Most businesses rely on middlemen, or intermediary parties, to run their operations. This means that more often than not, there is a barrier between consumers and the businesses they depend on for goods and services.
From retailers to banks to state institutions and more, many businesses employ the “invisible hand” of intermediaries, which results in disadvantages for both suppliers and consumers. For example, distributors purchase products at low wholesale prices at the supplier’s expense and sell those products at a high markup, thereby profiting off the supplier’s loss. At the same time, distributors sell these products at high prices, encouraging consumers to spend more money, once again creating a profit for themselves.
In short, middlemen are exploiting businesses and customers alike. Both parties are losing money at the middlemen’s gain. But it does not have to be this way.
Today’s market climate
The market has made strides toward an intermediary-free system through the rise of the direct-to-consumer [DTC] model of many modern small businesses. In this model, business brands leverage their social media influence to sell and promote their products, selling directly to the consumer and bypassing intermediary services altogether.
From affordable personal razors from Dollar Shave Club to prescription glasses from Warby Parker, to home-delivered mattresses from Casper, there’s a clear trend of DTC startups claiming their space in the e-commerce market. And it’s successful: 55% of consumers prefer DTC to traditional multi-brand retailers. Consumers are eager to stay in touch with their favorite brands through social media, where they can track updates and ask questions in real time.
Millennial power & the Direct-to-Consumer model
In looking at consumer shopping habits, it’s easy to understand why the DTC is so attractive, especially to younger demographics. Millennial shoppers, in particular, hold $200 billion in spending power, an undeniably powerful influence in retail. However, the millennial consumer is a cautious one. Having come of age in a poor economy, millennials are more risk-averse than previous generations and more hesitant to trust when it comes to how their money is handled.
This is why transparency is key. Consumers aren’t just prioritizing a great deal while shopping, they also want to know how their money is being used and who brands really are. In addition to buying quality products, consumers are looking to cultivate an authentic and secure relationship with suppliers.
DTC businesses have provided a great step in the right direction in connecting with consumers, but this retail infrastructure is not perfect. Unfortunately, because this model is so dependent on the online targeting of specific demographics, the consumer’s exposure to brands is severely limited by their online profile and habits. This creates a false notion of brand scarcity, allowing more visible brands to charge more for products and services. So although brands are able to cut the cost of intermediaries, shoppers still end up paying more money.
Additionally, smaller businesses are discouraged from participating in the DTC model, as brands with bigger marketing budgets are able to secure more ad space and exposure to consumers in comparison to brands with less to spend. Small businesses, therefore, have a limited reach through DTC.
The next step for e-commerce
Consumers still need to feel like they are being given a personalized shopping experience, complete with reliable information about what they are purchasing and fair prices. Smaller businesses also need the ability to break away from intermediary dependency. E-commerce is poised for an upgrade, and the most logical next step is to utilize the benefits of decentralized blockchain technology.
No middleman? No problem. Meet CRYPTAUR.
This is where Cryptaur comes in. Cryptaur offers the promise of blockchain-based decentralization in the retail space. A user-friendly platform looking to benefit both sides of the transaction, Cryptaur describes itself as the “digital space of the future on blockchain technology for direct supplier-consumer interaction.” Cryptaur wants to harness the power of modern technology to improve efficient and honest communication, and thus the shared retail experience, between consumers and businesses—without the middleman.
Best of all, users who might not be crypto savvy don’t need to worry about learning anything new to use Cryptaur. The company wants everyone, no matter their level of cryptocurrency knowledge, to reap the benefits of DTC 2.0. The community is the focus for Cryptaur, so exclusivity is not an issue. In fact, this blockchain e-commerce project’s mission is to build an environment where products and services are vetted by a community consensus, not ads or sponsorships.
A closer look at Cryptaur
Community participation is everything in this model. Through a community consensus, customers can make decisions based on full transparent information from their peers instead of over-saturated marketing messages from brands. Users are rewarded for participating, receiving CPT tokens when they refer their friends or recruit new suppliers, share feedback, and use CPT tokens to make transactions.
Cryptaur wants users to be more than consumers, but also content creators with full control of their purchasing decisions. Both suppliers and consumers can use this Ethereum-based ecosystem to interact with a potentially unlimited number of specialized peer-to-peer services and a diverse range of products, all the while improving the ecosystem’s efficacy just by participating.
Cryptaur and Fintech: a dynamic duo
Cryptaur’s key driver for CPT is Fintech of the Fintech United Group, a consensus banking service to open retail and corporate accounts. Fintech makes it fast, easy, and safe to manage money by leveraging premium technological innovations and smart, strategic partnerships.
The Fintech platform is available in more than 200 markets worldwide, hosting money transfers for both consumers and merchants to anyone, anywhere. Licensed by Singapore, Fintech has a 25 currencies clearing, European individual Iban and offers a high-limit debit card with a maximum spending of €30K per transaction, and maximum 30 transactions a day.
Fintech is both convenient and secure. Users have instant access to a web-based portal with all banking services, like unlimited SEPA/SWIFT transfers, debit cards management, instant transfers, and many more. All clients are required to verify their identity by passing a highly secure but fast KYC check, and designated compliance officers help Fintech United Group clients to stay compliant by giving professional advice.
Fintech fast facts
Fintech provides users with the following.
- Online accounts in a comprehensive 25 currencies including European individual Iban.
- Fast and easy credit card processing.
- The ability to make unlimited worldwide SWIFT and SEPA payments around the globe.
- Instant money transfers that take less than 30 minutes to process—every day of the week.
- Personal credit cards [FUG] with very generous credit limits—up to 30K EUR per transaction.
- Customer support 24/7.
- MPSVF licenses, just like Apple Pay and PayPal.
All Cryptaur users who have a Fintech United Group account can instantly buy CPT using their account on any Cryptaur service, with just one click.
E-commerce deserves an upgrade—on the blockchain
Consumers with the most spending power—and therefore the biggest influence on the market—demonstrate an evident desire for authenticity, connectivity, and transparency when it comes to how what happens with their money. Meanwhile, suppliers want to cut costs on distribution without losing their consumer base. The obvious answer to both parties’ concerns is an upgrade for the e-commerce space overall. That upgrade is on the blockchain.
While DTC businesses have made strides in the right direction, offering consumers quick access, convenience, and a sense of personal familiarity with brands they love, there are still improvements to be made. On the blockchain, businesses can connect with consumers directly, offering a curated shopping experience while also retaining communication and consumer data that intermediaries would otherwise intercept. Smaller retailers will also have a wider reach on this model, which means consumers will be exposed to a wider variety of brands. In this way, both parties can save money while getting what they are looking for, without any reliance or spending on a middleman to make it happen.
Users don’t even need to modify their behavior to buy or sell. Cryptaur and Fintech offer users all the benefits of the blockchain without needing to be a cryptocurrency expert, providing a seamless and familiar user experience on both ends of the platform, but with more freedom than ever before. Flexible, dynamic, and adaptable, Cryptaur will grow the market toward a brighter future.
The beginning of an era
E-commerce is just one branch of many where the Cryptaur’s timely no-middleman philosophy can use blockchain technology to improve the economy. Cryptaur’s understanding of the still untapped influencing power millennials hold opens up a wide range of ventures, from digital gaming to data management. The recent stability of CPT’s trading price even makes Cryptaur poised to dominate and expand the betting and lottery market.
Cryptaur knows the blockchain is crucial to our financial future, and Cryptaur proves to be a leader in the cryptocurrency marketing space. Cryptaur hopes to integrate blockchain in myriad ways to leverage the power of decentralization for an economy where everybody wins—except, of course, for the middleman.