Multi Cryptocurrency Payment Gateway, Explained
What is a multi cryptocurrency payment gateway?
It’s a decentralized payment platform that enables users to send and receive payments in multiple cryptocurrencies.
The aim is to create a platform that enhances the payment process by reducing the number of intermediaries involved. It is also intended to increase the regular use of digital coins on a daily basis.
By using a Blockchain ecosystem as a foundation, payments are highly encrypted and therefore much more secure than traditional online payment gateways. Also, it facilitates global transactions in multiple cryptocurrencies between suppliers, distributors, businesses, and consumers, at a fraction of the cost.
Smart contracts are used to negotiate and close payment agreements between transaction parties. Once an agreement has been established, smart contracts will verify the accuracy of a payment and expedite it to the correct counterparty. This allows for a high degree of automation, without the need for human intervention.
Smart contracts are also made available for audit purposes which increase the transparency of the process and add a layer of security.
Added security will give merchants peace of mind when transitioning to a decentralized payment gateway and help them to get settled with the platform much quicker. Users will feel more comfortable and are more likely to use a payment platform when they know that their payments are safe from attacks.
How is it different from conventional payment gateways?
Traditional payments often come with high risks and restrictions attached, especially international transactions.
A decentralized payment gateway, like ErosCoin, accepts more than 500 different kinds of cryptocurrencies. The decentralized nature of the system also means that payments are much safer and less vulnerable to malicious attacks. There is no human element involved and it reduces fraud as well as mistakes. Once payment is recorded and confirmed on the Blockchain, you cannot alter it.
Add to the fact that payment admin and red-tape is reduced by eliminating financial intermediaries, and you’ve got a very satisfying, cross-border payment experience for consumers and merchants alike.
No more frozen accounts because of hidden terms and no more limitations due to your geographical location. It is simple, cross-border payments at a reduced cost that you get instantly and securely.
What are the benefits of a Blockchain-based payment gateway?
The main focus is on convenience, security, speed, and cost-saving.
A decentralized, independent system gives you complete freedom over when, where and how you conduct your payments. The convenience of a multi cryptocurrency acceptance platform creates a standardized network that can be used by different users around the world, without the need for separate applications.
Automated smart contracts with predetermined parameters improve the transaction speed. A Blockchain-based payment gateway enables transaction parties to confirm the completion of payments to anywhere around the world in 15 to 20 seconds. It is significantly shorter than traditional online payment gateways, which can take up to 3 days.
Self-executing smart contracts also have a significant impact on transaction costs. Intermediaries like banks and clearing houses can cause transaction costs to stack up by charging high transfer fees and adding unnecessary third parties to the transaction process. However, using a Blockchain-based payment gateway that utilizes smart contracts eliminates the need for these middle-men and therefore reduces payment overheads to the absolute minimum.
Is it payments only?
Some platforms focus solely on payments within a specific cryptocurrency. However, a decentralized payment gateway, like ErosCoin for example, facilitates the process of sending and receiving multiple cryptocurrencies and provides a much more complete ecosystem that goes beyond just payments.
Apart from smart contracts, there are a number of decentralized applications available on a Blockchain-based platform.
In-chat payment features make it convenient for users to send payments to each other by simply sending a text message. While chatting, you can enter an amount in the chat system. Once the counterparty, friend, family or business, approves the request, a smart contract verifies the authenticity, and the sum is instantly delivered to your account.
Similarly, peer-to-peer, or P2P mass payments are a free, fast and frictionless method of transferring currency between two parties. Due to reduced costs, it’s still feasible when looking to transfer small amounts around the globe.
Mobile wallets with remote accessibility and an easy to use interface, make it simple to send, receive and store cryptocurrencies without the need for a traditional bank account. As more and more people depend on smartphones to get through their daily lives, a mobile wallet application can be used to send money securely and instantly to any other smartphone with a valid Blockchain address via the decentralized network.
A secure web wallet application is also a possibility and will function in the same way for commercial and non-commercial transactions, whether it’s to accept payments, make donations or pay bills.
Mobile payment processing solutions can provide the flexibility and convenience of accepting credit card payments from anywhere in the world and enable further mobile payment integration.
Additional solutions that can be implemented on a Blockchain-based platform include product management, order management, and invoice management applications. Along with the payment gateway, this will serve as a one-stop shop for everything business owners need to run a successful eCommerce company, all under one roof.