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On April 21, Dharma, an Ethereum-based peer-to-peer lending platform announced what it called Social Payments (a Twitter-native financial system) on Twitter. According to the peer-to-peer platform, it is launching the new system that allows Twitter users to accept payments in US dollars.
“Introducing social payments – a Twitter-native financial ecosystem. Today, you can send USD to any Twitter handle, regardless of where that person lives — even if they don’t have a Dharma account. Now every Twitter handle accepts (and earns interest on!) payments.”
The fintech startup noted that the new payment system is a payment solution for Twitter users to receive tips and micropayments without fees and hassles. At the same time, recipients would start earning interest “as soon as” they receive money, even before they claim it. The interest rate remains unclear but the firm is offering a 3.5 percent interest per year at the moment, according to its website.
Dharma’s customers need to first deposit money into their wallet app before sending money to a user on Twitter. When sending money, users need to enter the recipient’s Twitter handle in the app for them to designate the funds. This step will automatically trigger a tweet to alert the recipient that they have received money.
For the recipient to accept the payment, they need to click a link included in the alert tweet and create an account with Dharma.
Dharma was established in 2017 and has been funded by several cryptocurrency and blockchain venture funds. It was able to complete a $7-million round that involved firms like Ripple, Coinbase Ventures and others in February 2019.
In August 2019, it pivoted to a new Compound-connected platform, which allowed immediate earning of interests on deposits. Coinbase Ventures, Polychain Capital and Y Combinato are the remarkable investors backing Dharma.
Featured image courtesy of CoinDesk. Source: Cryptopress.