What Honey Does Better

Intro
Network - How Transactions are Consumed
QR Code
No Legacy Network Dependencies
How Transactions are Paid For
Data

Intro
We challenge people daily to identify any company that is a true mobile payments player in the U.S.; most say ApplePay. See our section on Competitors and you may change your answer.

We just do things differently, in fact a lot differently. Hopefully we have demonstrated that in this document, but we are happy point out a few of these things for ease of reference.  

Network - How Transactions are Consumed
Most payments run through the existing credit card network; this is not only legacy, but archaic. With cloud and peer-to-peer technologies, upstarts can reduce network cost immensely. We use the cloud extensively to shift costs and gain speed and flexibility. For example, Honey shifts our network cost to the user by using the mobile phone network. This gives us tremendous flexibility and speeds up the user and merchant experience. Since we are not dependent on legacy infrastructure to process a transaction, we do not have to create any special hardware to communicate with the legacy networks.  

QR Code
Using Quick Response (QR) Code technology gives us the ability to communicate in 2D ways that were once only dreamt of. Not only can we pack QR codes full of data, but they have enabled us to use the cloud much more effectively. For example, we don’t have to require every merchant to purchase new terminals (like Apple Pay) or any special hardware to accept Honey. They simply download the Honey app.

No Legacy Network Dependencies
A MC or Visa credit card takes up to 20 touches to process, and as many as 8 players are part of each transaction. Of course, the more people involved, the more complex, the slower and the more expensive the transaction gets. Honey has removed all 3rd party friction so the merchant and user just have Honey to interact with. That gives us, the user and the merchants much more control over the transaction.

Distributed Ledger
Blockchain technology is too slow (9-15 transactions per second) to use as a payment transaction tool. However, we utilize the distributed ledger to track our transactions and enable our partners to consume that data. This is good for those that will license the Honey platform to run transactions and banking partners who would white label Honey. We envision a world where a central ledger acts as a central point for containers to consume accurate data.

Embedded
Embedded means a lot of things, but in the context, we are referring to the idea of embedding Honey into every aspect of life. In a sense, embedding combined experiences. For example: We can enable users to get a deal from a restaurant, then let them make a reservation, order takeout and pay for the meal all within the app. Combining embedded experiences is the future of payments and we think that is a very big deal!

How Transactions are Paid For
Today, merchants pay for every part of the transaction, but the tide is changing. In the U.K., there have been candid discussions about charging users the credit card fees – after all, they are the ones who ultimately benefit from using a credit card. Though intriguing, we don’t agree with this model. We don’t mind charging the merchants, but let’s start giving them value for their money.

Using a freemium model, we will give away transactions and provide merchant benefits to upgrade. If we decided to charge a small monthly subscription fee of $25.00 to merchants for additional benefits, we would have margins that approach 96%. Couple that with the other services we will provide and one can easily see how transactions will be paid for. Please review our Monetization section for more information.

Data
Data is one of our biggest differentiators! We just wanted to mention it here, but please see our data section for more information on this topic.

Next Section: The Market

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