How The KINEKT Payment Solution Works: An Overview

Hello KINEKT fans!

Today we want to give you some more specific information on our agnostic terminal. With the explosive growth of our Telegram group and Twitter account, we feel it only prudent to give our readers some more details on how exactly our terminal is going to work.

In a nutshell, the KINEKT terminal is simply a bridge between merchants and our cloud-based transaction management solution. The primary goal of our infrastructure is to overcome the technological restrictions of the archaic bank card industry and the costs associated therein.
The KINEKT Terminal

The KINEKT terminal itself is simply a front-end device that merchants use to process transactions. All that is required for customers to make a purchase is a fingerprint and a pin number. Once the pin is entered, the data is sent directly to the KINEKT cloud via a GSM connection. Once the transaction request is sent, merchants and service providers that are plugged into the cloud verify the transaction.

The KINEKT Cloud

So, what is this “cloud” that everyone loves to talk about? Well, if the terminal is the front-end, then the cloud is the back end. This side of the transaction-management coin is used to host data and transaction requests. Merchants and third-party service providers interact with the cloud in order to process transactions and settlements.

KINEKT Clouds are not only connected merchant-to-cloud, but also cloud-to-cloud. This is where we make use of a distributed blockchain network in order to synchronize transaction records to facilitate a seamless operating procedure for merchants. In other words, it makes the system decentralized and keeps it running uninterrupted.
The KINEKT Blockchain

While the bulk of KINEKT Cloud infrastructure is decentralized, we have also chosen to centralize certain aspects of our back-end in order to solve the latency issue that can sometimes plague blockchain technology. We understand that merchants need real-time transaction clearing and settlement capabilities. When new technology inevitably comes out that aids in high volume transactions, this may change.

For now, the breakdown of centralized vs decentralized elements can be broken down like this:

1. The centralized network allows KINEKT Terminals to quickly communicate transaction-related information in real time to a KINEKT Cloud.
2. The decentralized network allows KINEKT Cloud platforms to communicate with each other. This enables them to securely synchronize and backup transaction data, provides a working ecosystem for token-based trading benefits, and allow international transactions to take place without requiring users to re-register under multiple platforms.

The KINEKT Token (XKN)

Here are three uses for the KINEKT Token:

1. KINEKT Tokens are required by 3rd party service providers and merchants to pay for service-related fees of using the KINEKT Terminal.
2. Tokens may be used by token holders to purchase goods/services directly from merchants and 3rd party service providers
3. Finally, tokens can also be used to trade among KINEKT platform participants where cryptocurrency exchange is allowed


The KINEKT Wallet

Our cloud-based wallet will be available for XKN token holders as well as users of the KINEKT solution. Since it is cloud-based, it will utilize a smartphone app and/or a web-based portal for connection. APIs will be available for developers to integrate into existing web infrastructure, existing multi-coin wallets, etc.

If you have any questions, feel free to ask them below!

Use cases

Cryptocurrency Transactions

With the significant global growth in popularity of cryptocurrencies, there has been an urgent need for methods of using these currencies as a means of payment within traditional markets. However, the only means of using cryptocurrency as means of payments to date have been by connecting Visa or Mastercard's to existing Cryptocurrency Wallets (i.e. Bitcoin Wallets), or through the introduction of dedicated Cryptocurrency Terminals or ATM's.

Unfortunately these means simply add to a market already fragmented, costly and inefficient. The KINEKT Terminal overcomes this problem by enabling both traditional and cryptocurrency type transactions to processed without exclusion of the other simply by having providers plug into the KINEKT Cloud.

Mobile Wallet Transactions

Ever since the development and roll-out of NFC there have been global efforts by the banking industry and wallet providers to have merchants upgrade to the latest PCI / EMV compliant terminals in order to give their customers the option to perform contactless payment & related transactions.

However, to date the market roll-out and customer participation have been slow due to the high cost to merchants and most of the world still preferring to use either cash or traditional bank cards etc. The KINEKT Terminal overcomes this problem by enabling any mobile wallet providers in the world to simply plug into the KINEKT Cloud in order for their customers to transact at participating merchant points of sale without expensive terminal upgrades being required.

Bank Card Transactions

Banks and card companies are increasingly put under pressure by merchants to offer lower card transaction processing fees for physical point of sale terminals. Unfortunately the design of the bank card payment terminal networks make the reduction of fees difficult due to too many intermediaries involved in processing "pull payment" type transactions between card issuing banks and acquiring banks.

However, the most recent global efforts of the banking industry and card companies to introduce direct peer to peer "push payments" for the internet and personal customer to customer transactions, make it possible for KINEKT to extend this feature as a low cost P2B (customer to merchant payment) means not possible using current bank card terminals.

Unbanked Transactions

There is an estimated 2 billion unbanked and underbanked people in the world not able to benefit from bank card related payment services to purchase goods and services at physical points of sale. This is mostly due to the remote locations of this market, the cost of banking services, and the lack of infrastructure to use card related services such as ATM's and merchant bank card terminals.

The KINEKT Terminal makes it possible for the banking industry, mobile wallet providers and merchants to gain access to these remote markets by way of its internal GSM connection to the cloud, and Fingerprint reader to identify customer accounts during the transaction process instead of issuing traditional bank cards.

We see this as a massive opportunity not only to do some good in the world, but to take advantage of a market that has vast potential.

Feel free to post questions in this thread and we'll do our best to answer them.

Read our whitepaper: https://www.dropbox.com/s/hludc0snmjerxiz/kinekt%2C%20ico%20white%20paper.pdf?dl=0
Our Medium blog: https://medium.com/@kinekt_hq
Follow us on Twitter: https://twitter.com/kinekt_hq
Join our Telegram: https://t.me/kinekt_terminals
Visit our website: https://www.kinekt.technology/

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