BarterPay platform in its name is reminiscent of how before the invention of currency, people would trade their goods and services amongst each other. Bartering is when both parties want something and deem the other item or service to be of equal value to what they provide. Just like how one might have exchanged a cow for a sheep – this platform is a modern equivalent for individuals and businesses.
It’s more advanced than a direct one to one bartering system where two parties directly trade. For example, person B doesn’t want person A’s item or service, person A can offer up Barter Credits to get what they want, and then make back that credit by offering their services to anyone else in the community whether it be person C, D, E and so forth. This creates an ecosystem where everyone can benefit from one another.
This platform is targeted to anyone from any profession. Businesses exchange their spare capacity for Barter Credits which for taxation and accounting purposes equals one full Canadian dollar. It is recognized by the Canadian Revenue Agency (CRA) as cash equivalent.
Meridian, the second largest credit union in Canada, recently paired up with BarterPay. Their partnership allows for Meridian members to easily join up and try BarterPay. John Porter, BarterPay Founder and CEO says “During a time when cash is scarce and spare capacity is at an all-time high, our user-friendly bartering system makes it easy for businesses of any size to convert their under-performing assets into value and at the same time, deliver more impact in the community.”
It will be interesting to see how fast BarterPay grows and if it plans to move internationally. We may see more copies of this business model pop up and thus the CRA will have to deal with a form of currency that isn’t the traditional Canadian dollar.