HI I'm Terry from Nanocents

Hello everyone! I’m the founder of Nanocents, an efficient micro payment system for internet transactions. User pay a membership fee, then can spend nanocents at any website, even static sites, that accept nanocents. We expect typical nanocent transaction to be in the range of $0.10 - $1.00 USD.

The goal is to provide an alternative business model for content creators who currently use adsense. We are focused on efficiency - delivering the highest possible percentage of a users payment to content creators.

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Hi Terry, do you have a website?

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Hi Terry. Nice to meet you.

@terrybraun - I love the idea and it is very close to what I’m working on with Tipalink (https://www.tipalink.com). How do your users spend their nanocents? Do you have a plugin or browser extension? I couldn’t find any info on your website (https://www.nanocents.com/). At Tipalink, we offer both a plugin (embeded HTML generated by JavaScript) that our users can add to their websites and a browser extension for more tech-savvy tippers. I love the idea of invoicing your users once their payments hit a certain threshold. Similarly, at Tipalink we accumulate “tips” into a “tab” which user can start paying off in minimum $1 transactions. If you want to learn more, I’ve created a big FAQ on our website and will be publishing some articles on a blog section too very soon. If you want to talk sometime or may be interested in working together in some regard, please feel free to reach out via the contact form on my website. Cheers!

Hi @newagecontentservice. Sorry for the delayed response.

Yes the web site is https://nanocents.com which is under active development. The goal is to go live in the next week, although that may slip a bit. Please feel free to send an email to tab@nanocents.com if you have ideas or would like to learn more.

Best
Terry

@everyone, By the way, if you would like to try out nanocents with paying the $5 membership fee, please send me an email tab@nanocents.com. (And just FYI the membership fee is not-quite-live-yet).
Terry

Hey Terry

We run many global websites including www.whatsnewonthenet.com where we feature startups from around the global.

Could you send us a press release/note telling us what Nanocents is all about, + quotes perhaps from the CEO, CTO etc and then we will publish it?

Looking forward to it.

Thanks

Sorab

I put demo video on youtube that shows how Nanocents micropayments work.

It shows both an integration with a github repository as well as a standalone static website.
Best!

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FYI that type of payment flow qualifies as a Money Service Business (https://www.irs.gov/businesses/small-businesses-self-employed/money-services-business-msb-information-center), which is highly regulated and will make it difficult to open a business bank account. I learned this the hard way.

I looked at this a second time and because of how my business is structured, I am not an MSB. I could be wrong and would be happy to discuss this further and appreciate your help! Thanks for the heads up.

Where does the money go when someone makes a payment to top-up their Nanocents account? How does that money get from their Nanocents account to the accounts which they donate?

Based on the video you posted, the money is charged up front, which means it’s held somewhere before being distributed to beneficiaries. If you are holding funds and acting as a business (not an individual), then it’s an MSB (money transmitter).

The only way around this is to use a third-party intermediary who takes care of it for you. Stripe Connect is the only service I’ve found offering this in the US. Even then, I think the funds can only be held for up to 90 days and then are reversed.

I’m open to explaining my understanding and sharing my experiences. I received your email, but I’d prefer to discuss here in the forum so that others may learn and benefit, as well.

Nanocents is a billing service. I ran into the problem of taking up front money when I tried to get my Stripe account activated - taking credit cards - and changed how it operates. The new model is like an electric utility - you set up an account, then you use what you want and at some point you are billed for what you have used. In that sense, a nanocent is simply a measure of usage, similar to a kilowatt hour. There is no “holding of funds” and as far as I can tell, Nanocents is not an MSB unless PG&E (to use a well known power utility) is also an MSB. Or gas stations would also have to be MSB’s? I recognize this may not be correct, but at least it narrows the question down. If Nanocent is an MSB why isn’t PG&E?

The issue that may be fuzzy is that I then pay websites- those who accept nanocents. But that part seems to me a billing service. Lots of places hire billing services. Etc.

The video was very targeted to businesses who want to use the nanocent billing service as opposed to users who are paying. It shows users buying a membership card, and they using “paying with nanocents” but the “paying” is not really paying - it is a user adding things which they agree to be billed.

I recognize that I am not authoritative on all this (and anyone listening in should take that into account).

I will do a user oriented video demo.

Thanks for the reply. Happy to have the discussion here, but I would also appreciate a chance to talk this through on the phone if you are interested.

PG&E is not a MSB because they are billing you for a product/service they provide. They’re not just taking your money, as a customer, and giving it to someone else.

If Nanocents is billing users and that money (ultimately) ends up with another user of the platform, then it sounds like a money transmitter (a type of a MSB). Now, if you’re saying that there is a product/service being exchanged - viewing content on a website - then maybe not. You could argue that you’re operating like any multi-vendor marketplace (e.g. eBay). But, to make that case, I’d surmise you’d need to implement a paywall. Otherwise, I’d think that it could be viewed by the IRS as an MSB with extra steps.

That’s my understanding.

@lastmjs what do you think?

I’m not quite sure, but from how I understand it, the big question to me would be if Nanocents represent value that substitutes for currency. I always hearken back to this guidance: https://www.fincen.gov/sites/default/files/2019-05/FinCEN%20Guidance%20CVC%20FINAL%20508.pdf

It’s very detailed and clear, and discusses cryptocurrency and similar mediums of exchange. But, Nanocents could also be like airline points or Chuck E. Cheese tokens. If their closed to the Nanocents system and have no value otherwise, it might be fine. But I know points and tokens have their own regulations/disclaimers.

Also, just to be clear, IANAL. Though I love talking about law for some reason

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