Today, When I searching for new potential ICO, I found Monetha. So In this article, I will discuss new crypto coin Monetha.

What is Monetha?

According to their whitepaper, ” Monetha is creating a universal decentralized trust and reputation solution working flawlessly together with mobile payments processing on the Ethereum blockchain leveraging smart contract technology.”

Put in simple terms, Monetha is a payment processor which will allow for financial transactions to occur on the blockchain.  What I found is It’s a kind of like a cryptocurrency-based Paypal. So, As we know it’s a payment processor, It’s fields is E-commerce


How Big Is The Market for Monetha

E-commerce worldwide sales in 2014 were USD 1.33 trillion and are projected to increase to USD 4.058 trillion by 2020.

E-commerce share of retail sales is expected to increase from 7.4% in 2015 to 14.6% in 2020. Furthermore, according to Statista, the number of people buying goods or services online will increase from 1.46 billion in 2015 to above 2 billion in 2020.

We can see, there is a massive market in which Monetha will be operating and, above all, the market is expanding at an incredible rate and will continue to do so for coming years.

What Problems Are & How Monetha Solving Those?

Monetha claim that there are 3 major problems within the industry currently:

  1. Expensive and Long Payment Processes
  2. Trust and Reputation Issues – Centralised systems cannot be fully trusted
  3. The majority of merchants are unable to accept Ether

But Think The first one is the Actually and a huge problem. And others 2 are just shit.

Monetha Problem solving CG

1. Expensive and Long Payment Processes

The 1st problem listed here is legitimately a huge issue within the industry and, it is for this reason that Monetha is attempting to fix a real and huge problem. For this reason, I will be discussing this issue and how Monetha will address it in depth.

Trust and Reputation Issues

I don’t personally believe that the PUBLIC really have a problem trusting centralized companies like Paypal though and therefore the 2nd issue Monetha are attempting to solve isn’t really there in the first place.

 Merchants can’t accept Ether

In their white paper, They state

Merchants cannot accept payments in Ether, which has reached a market cap of USD 36bn as of June 14th. Moreover, a totally new digital asset class is being created: tokens of products that are built on the Ethereum platform.

But, We know any payment processor can accept Ethereum and other cryptocurrencies as well. No one can stop them.Therefore, Monetha holds no real advantage in this aspect

Now, Is the 1 real problem that Monetha is solving big enough to justify an investment from us?

My answer is Hell Yeah. This is a million dollar problem.

The Current System

As Per Monetha Whitepare, Traditional Payment Processor Works like below

  • Up to 16 different steps to accept and settle transactions
  • A transaction fee of 2% – 6%
  • Expensive Cross-Border fees e.g. Paypal charges merchants a fee of 4.4% + Fixed Fee, instead of the usual 2.9% + fixed fee for same country transactions
  • Expensive chargeback fees; usually at least $20,
  • Long transaction times ranging from 2 days to several weeks before the merchant receives their money
  • This can cause significant cash flow issues for smaller companies
  • Mobile payment processor options are often not great; some such as Paypal though are good.

How Will Monetha Improve This?

Mobile payments

According to the Boston Consulting Group, the payment industry will experience a major shift towards mobile payments:

  1. The volume of mobile payments is USD 8.6 billion in the US. It is expected to increase tenfold in 2021 to $ 274 billion only in the US.
  2. The mobile share of total e-commerce is expected to increase to 48.5% of total e-commerce by 2020. That figure is 23.6% 2015.

Statista, A reputed online statistics, market research and business intelligence portal, Stated

“approximately 80% of internet usage will be mobile by 2018. More importantly, though, mobile payments are projected to increase from USD 8.6bn in 2015 to USD 274bn in 2021.”.

Cheap Transaction Fee

Monetha will charge only one fee – 1.5% transaction fee for merchants. Wow, amazing is not it? Monetha even only levies the transaction costs around 1.5% only.

It will not make a big difference in within country transaction where the fee is 2%-2.5%. But The real difference you can found when you consider INTERNATIONAL PAYMENTS.

For Example;

A shipment Total value of $1 Million.

Paypal will charge 4.4% + a fixed fee for cross-border payments. Even assuming this fixed fee is $0, Monetha will be $29,000 less.

$29,000 savings is a huge difference and thus Monetha has a clear competitive advantage over their competitors in this approach.

Payment System of Monetha

At first, payments will only be possible in Ethereum. Once the funds are sent, Monetha will automatically exchange it to the merchants preferred currency, crypto or fiat, and deposit the funds into their account. They say that total transaction times will be around 2 minutes. There is no clearance, no settlement and nothing slowing down a payment.Monetha Payment Process - CoinGyan

What a stark difference to Paypal and Stripe. I’ve read horror stories online about how many merchants doing 50k+ a month have had their account and funds frozen for 6 months until they were released. Paypal and others give merchants no control over their payment system and they don’t care about the needs of the merchant. If they have to shut down their business because of the wait, it’s not Paypal’s problem. Monetha puts an end to draconian practices like these.

So Monetha will Work like:

Clients pick their items and add them to their cart on stores like etc and then select that they will use Monetha to pay rather than credit card or Paypal etc.

  • The amount needed to pay is converted to the selected Ethereum based currency
    (token) from traditional currency in real-time.
  • A QR code is generated which the client scans with any crypto wallet on his mobile app and presses “send”.
    Money arrives in merchant’s smart contract wallet in approximately 2 minutes
    The amount of Ethereum based currency received is automatically exchanged to the merchant’s preferred fiat currency via an exchange API e.g. Poloniex API.

Monetha’s Incentive Program

Monetha has decided to increase the purchase value of the MTH on the Monetha platform, by shifting ⅓ of Monetha’s revenue in the “Voucher Smart contract” with an ability to claim for a voucher proportionately to the amount of MTH tokens that they hold. Token holders will receive a voucher in MTH (Monetha’s currency) to use it as a discount when shopping with Monetha’s merchants. This voucher would be proportional to the amount of the MTH tokens held.

Here’s how it works:

  • Monetha charge a 1.5% fee per transaction
  • 1/3 of this (i.e. 0.5% per transaction) goes towards the loyalty pool
  • This creates the effect of the loyalty pool building with each transaction
  • Every purchase made via the Monetha payment system will reward the client with 0.2% of the value of the transaction; paid in Monetha Tokens
  • This comes from the loyalty pool
  • Monetha tokens can be applied for up to 70% of the purchase value
  • Tokens acquired in this way are eligible for a discount for 6 months. Unused tokens are returned back to Monetha loyalty token pool.
  • Clients can’t exchange these tokens from other currencies thus increasing the value of the tokens over time

*Let’s say we have 1000 investors as MTH holders, holding 1 MTH each. Now, all token holders equally hold 0.1% of the total token supply.

*Let’s say Monetha’s merchants sold 100 000 ETH worth of goods and services in one month and let’s say that 1ETH = 1MTH. Because Monetha takes 1.5% transaction fee from merchants, Monetha will have 1500 ETH of revenue collected.

*For this scenario, ⅓ of Monetha’s revenue means ⅓ of 1500 ETH = 500 ETH. Therefore, we will put 500 MTH in the “Voucher Smart Contract”. We get 500 MTH Voucher that is available to use for MTH holders in Monetha’s ecosystem. All 1000 MTH holders will equally have the ability to use 500 MTH Voucher when shopping with Monetha’s merchants. In this case, one token holder will be able to spend up to 0.1% of 500 MTH (=0.5 MTH each).


Monetha was co-founded by Andrej Ruckij, Justas Pikelis, and Laurynas Jokubaitis. They all previously worked together on creating a non-blockchain payment gateway, and they have various backgrounds in advertising, marketing, consultancy and IT. They have brought several heavy hitters onto their team as well, Eric Duprat, formerly Paypal general manager of mobile and Kellogg N. Fairbank, former VP Sales/Head of Business Development for Braintree Payments in Europe

Now The Honesty Part

Am I investing?


There is a significant buzz surrounding this ICO in the crypto community, the team appears to be a strong one and the amount of money they will be collecting is reasonable.

For above reasons, I believe the price will rise after the ICO and this could be a solid medium-term hold. If the team is able to form strong partnerships with websites like Amazon, they would soon become an incredible long-term hold.

Disclaimer: Everything in this article is just my opinion. I am not a financial advisor and I never recommend financial decisions for anyone. I have zero affiliation with Monetha.

I am simply 100% honest with my followers about what I believe and you guys can choose to copy me if you wish 🙂

Let Me What You think about Monetha. Will be going to actually  PayPal of Blockchain? Feel Free to give any suggestion in the comment section below.

Post Contents

About Author

I am a tech enthusiast & Digital nomad from Dhenkanal, India I've been dealing with Bitcoin since 2014.I started CoinGyan to help users around the globe to learn about popular Cryptocurrencies. Here at CoinGyan, I write about Bitcoin Wallet, Cryptocurrency wallets, & making money from Crypto.

Related Article

2 thoughts on “Monetha.. PayPal of Cryptocurrency ??!!”

Leave a Reply

Free Subscription

Join our free newsletter & stay update about all the cryptocurrencies.