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Twarden

Can Gateways technically offer prepaid paper solutions to ripple IOUs?

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 I have been thinking of the concept of offering ripple IOUs through a redeemable prepaid card sold via a mixture of retailers an online sales.  For a while, I was thinking of different methods of attempting this use case which had large attack vectors, for example a database full of redemption codes could be compromised.  This also does not take into account the security issues on the issuers' end, where as redemption codes could be redeemed before sale among other malicious possibilities.

Instead of creating a complicated back end system for redemption, I have settled on a concept of creating paper IOUs for redemption of ripple IOUs by issuing branded cards of various denominations which must be mailed back to the operator for destruction after processing a Ripple payment.  The prerequisites would be a set of instructions for filling out a form, some marketing information, logo of the Gateway, an a pamper proof seal in each card which unfolds when broken to reveal the form.  The recipient would include their ripple address (or the address of the recipient), the full name, address, phone number, and email address which the operator must confirm the identity of before processing payments in accordance to some jurisdiction's financial regulations.  

Depending on the printing costs of a logo, some instructions, marketing information, a small form, an small folding cards glued in place with a tamper-proof seal, I do believe that Gateways have the ability to enter into a niche portion of the prepaid solutions industry an have the potential to boost growth greatly if successfully partnered with a distributor to market their prepaid deposit method(s).

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42 minutes ago, RafOlP said:

No, quite the opposite of this use case.  As redemption codes are not generated on the network and are known by the creators in advance to be used for redemption of a ripple balance at a later date (essentially both are promissory notes) can be recorded by unscrupulous Gateway operators for early redemption and redemption codes stored in a database can be compromised by an attacker.  The concept this thread discusses would eliminate these two attack vectors.

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I like the idea, but the physical moving of redemption offers makes this unattractive.

How about a white label virtual prepaid cc? Entropay offers prepaid cards, Virtual Incentive offers prepaid and e-certficates. Some card issuers offer branded offerings, Peoples Trust (Canada) offers physical one time or re loadable and virtual cards. Of course profit margins are slimmer, but the usability and reach of these offerings might compensate.

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29 minutes ago, Mercury said:

I like the idea, but the physical moving of redemption offers makes this unattractive.

How about a white label virtual prepaid cc? Entropay offers prepaid cards, Virtual Incentive offers prepaid and e-certficates. Some card issuers offer branded offerings, Peoples Trust (Canada) offers physical one time or re loadable and virtual cards. Of course profit margins are slimmer, but the usability and reach of these offerings might compensate.

I am already attempting to partner with Berkeley Payments to create a pathway within ripple to reloadable prepaid debit cards based in CAD and USD.  I actually submitted more paper work this morning to the lawyer for Corporations Canada, which has yet to update my information so that I may proceed with my application.

The converse of your suggestion is a prepaid deposit method for Gateways an what I am attempting to solve.  Of course the physical redemption method would be slow due to reliance on shipping but it is a sound design.  The potential to market this kind of product at conventions/trade shows/in-person sales could work for some businesses but the end goal would be distribution to retailers and direct online sales to clients.

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