Pros and cons of crypto processing
Cryptocurrency is rapidly taking over the world. More and more goods and services can be bought with this digital asset. And more and more companies are agreeing to accept it as payment.
In 2019, the number of companies willing to sell for cryptocurrency was just over 900. In 2020, it was 15174 – an increase of 94%.
And we can be fully confident that in 2021 there will be even more. And it is certain that the growth will not be linear, but more rapid.
But accepting cryptocurrency payments requires its own processor, crypto processing. Let’s take a closer look at its pros and cons.
What is a crypto processor?
Processing is the process of ensuring that money is transferred remotely from the buyer to the seller for their goods.
Consequently, crypto processing is the process of ensuring that payment is accepted from the buyer in cryptocurrency.
It should allow:
- Accept the cryptocurrency from the buyer.
- Transfer it securely to the seller’s wallet.
- Exchange it for other e-money or fiat currencies.
Technologically, crypto processing is structured similarly to fiat currency processing.
That is, it necessarily includes a payment gateway – a hardware and software complex that automates cryptocurrency payments.
In essence, for the buyer, the payment technology is exactly the same as for bank card processing.
First, he is taken to the payment form page, where he has to fill in a number of parameters – the amount of payment and a comment on it (if necessary).
Then he is directed to the payment gateway itself, which he sees as a payment page. There he has to authorize and confirm the payment.
However, if the authorization for payment by bank card involves filling in the card number, CVV and expiry date in the special fields.
Next, a one-time password must be entered, which will come in a text message to the phone linked to the bank card, then to make the crypto payment you just need to enter the bitcoin wallet address of the merchant in a special field.
The buyer is then redirected to the payment status page, which shows whether the payment has passed or failed.
There are now a large number of cryptocurrencies. But not all of them are accepted as payment.
Bitcoin is the most popular, with 91% of crypto payments being made in it. Ethereum and Litecoin are also popular. For example, PayPal, the world’s most popular electronic payment system, has allowed payments in Bitcoin, Ethereum and Litecoin.
Benefits of crypto processing for the seller
- Increasing the customer base. This is especially true if the seller’s target audience is young people. That said, while many electronic currencies have a pronounced geographical spread, cryptocurrency (at least the most popular) is truly international.
- It is not possible to undo transactions. There is no fraud or chargeback. Cryptocurrency is designed in such a way that there is no way to recover the payment, the validity of the transaction is confirmed by the users, and each transaction is encrypted.
- Low fees. Many times lower than with bank card processing. That is, the merchant gets more money for the same product.
Disadvantages of crypto processing
High volatility. Cryptocurrencies change literally every second. So if cryptocurrency is just one way for you to get paid for your goods, you need to convert it into fiat currencies instantly. You can set up your crypto processing to do this automatically.
Transaction delays. So far, any cryptocurrency has low transaction speeds. Bitcoin, for example, has 4-5 transactions per second, while VISA has 65,000 per second. But cryptocurrency transaction speeds are steadily increasing as it becomes more popular. We are sure that in a couple of years this problem will disappear.
Problems with legislation. Cryptocurrencies are banned in many countries. But gradually their number is decreasing under the pressure of objective world processes. After all, the technical process is unstoppable.
Wellcoinex – the most advanced turnkey crypto processing solutions
Wellcoinex offers the most advanced crypto processing solutions, allowing us to offer the most favorable terms to merchants.
Our crypt processing allows you to accept payments in over 20 cryptocurrencies, providing the fastest possible transaction speed.
We guarantee 24-hour technical support and full information on your payments.