Cryptocurrency payment gateways can have a significant impact on a company’s operations. By accepting Bitcoin payments, companies can expand into new regions without having to search for local providers. Processing fees are also lower, saving companies a lot of money on commissions. Additionally, crypto payment providers don’t require rolling reserves, eliminating the risk of chargebacks and associated fraud.
Integrating a crypto payment gateway is simple for those unfamiliar with blockchain technology too. Thanks to instant conversion to fiat and transferring to a bank account, clients do not have to receive crypto directly. What’s more, crypto payment providers like CoinsPaid offer unprecedented tech support to their clients. CoinsPaid’s CEO & Co-Founder, Max Krupyshev explains more about crypto payment providers and their integration within traditional businesses in the interview below.
Q: How will accepting crypto payments affect a company?
Integrating a crypto payment gateway can have many positive effects on a company. Accepting Bitcoin payments, for instance, enables borderless payments, allowing companies to easily expand into new regions without having to search for local providers. This can help businesses gain a bigger market share and offer universal payment options.
Crypto payments also have lower processing fees, reducing costs up to 80% compared to traditional banking systems. In crypto, the fees are about 1%, while fees in traditional finance range from 2.5% to 5%. By eliminating traditional financial intermediaries in payment processing, companies can save a considerable amount of money on commissions.
Another benefit is that crypto payment providers don’t require rolling reserves, which are mandatory in many cases for a merchant’s bank as a safeguard against chargebacks. Therefore, chargebacks and associated fraud won’t be an issue for merchants who use crypto-enabled payment gateways.
The growing crypto audience, with over 300 million users worldwide, is another reason why companies should consider accepting Bitcoin payments. However, CoinsPaid’s internal research found that the process of refunding money concerns most merchants. Refunding is still possible but is performed by CoinsPaid’s team upon a merchant’s request.
Q: What are the risks of connecting to a cryptocurrency payment provider?
When connecting to a cryptocurrency payment gateway, companies should be aware of the potential risks involved. One significant risk is the high volatility of cryptocurrency prices, which can fluctuate dramatically for no apparent reason. If a crypto payment provider does not support instant conversion into fiat, there is a risk of losing profits quickly.
Another potential risk is the possibility of receiving digital assets that have been used for illegal activities such as money laundering or terrorism support. This could not only damage a company’s reputation but could also result in legal proceedings. To avoid this, it is essential to ensure the purity of incoming transactions. There are several solutions that are available to help mitigate this risk.
It is also important to note that the crypto space is susceptible to a lot of risk factors, including hacks and security breaches. Cryptocurrency payment gateways can also be vulnerable to such exploits. Therefore, asking the crypto payment provider about their security measures and how they store their clients’ funds is important.
In the example of CryptoProcessing by Coinspaid, these risks are eliminated and simply minimized by the security team through 24/7 monitoring, independent security audits, and a safekeeping system for client funds, as well as strict KYB procedures to ensure full compliance, and a bespoke security structure. What’s more, the platform also takes advantage of integrated blockchain risk-scoring services like Crystal and Scorechain to monitor suspicious transactions.
Source: CoinsPaid
Q: What should people look for in a cryptocurrency payment gateway?
When choosing a cryptocurrency payment provider, it is important to consider factors such as reputation, compliance and security, scalability and transaction acceptance rates. Look for a provider with a well-established reputation and one that follows KYB procedures. It’s crucial to choose a solution that has taken precautionary measures to guarantee the security of the business, and security audits and dedicated security teams are good signs. CryptoProcessing by CoinsPaid meets all of these criteria and has been successfully audited with no vulnerabilities detected.
Q: Are there any particular features people should look for?
When selecting a crypto payment processor, it's important to look for features such as a wide variety of payment options to fit different business needs, instant transaction confirmation to avoid delays and fraud risks, simple integration with skillful tech support, and convenient depositing and withdrawing options, including SEPA and SWIFT support. Our platform offers all of these features, making it a great option for businesses looking for a reliable and flexible crypto payment processor.
Q: What if someone doesn’t understand anything about blockchain?
You don’t have to understand how blockchain and crypto work. If you don’t want to receive crypto to your account, you can enable instant conversion to fiat and then transfer them to your bank account. Integration is handled by our technical team and support is offered for the setup on the merchant’s side, while each client is assigned a dedicated account manager for around-the-clock help. It’s as simple as that.
Q: What does the integration process look like from a merchant’s perspective?
Integrating a cryptocurrency payment gateway typically involves a sales team reaching out to the merchant to understand their business needs and present available options. The merchant is then provided with guidelines and requirements for compliance, and a sandbox is created for testing. After completing the necessary agreements and documents, the tech team performs the integration and opens a production account. An account manager is then introduced to the client.
Accepting Bitcoin payments can provide numerous benefits for businesses. However, it is important to be aware of the potential risks involved and choose a reputable and secure cryptocurrency payment processing gateway that follows compliance procedures.
Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain in this sponsored article, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.