In 2021, the cryptocurrency industry had a huge breakthrough — mainly through institutions and individuals investing in digital assets like Bitcoin and Ethereum.
Cryptocurrency refers to any form of asset or currency that only exists digitally while using cryptography to maintain secure transactions. However, what makes it unique is its lack of a central issuing and a crypto regulating framework or body. Instead, it has a peer-to-peer system where users transact with one another without any governing authority.
But blockchain technology, crypto’s backbone, keeps the entire community safe and protected. It has a timestamped record of all transactions that currency holders partake in. So long term crypto investments are protected and kept secure.
And if you’re wondering how crypto is earned – it’s made through mining. Mining is the process of solving complex mathematical problems using powerful computers. As a result, crypto coins are generated. But the most common way of purchasing crypto is from brokers. And upon buying some assets, you should store them in a secure crypto wallet — preferably a cold one.
Crypto: Can You Use It As A Method Of Payment?
Throughout time, crypto has been viewed as an investment where users need a hefty amount of money to get started. However, crypto market trends prove that you purchase a small amount and still see some progress — although larger investments would yield larger profit.
But did you know that crypto is more than just an investment? You can also use it to pay for daily items in this day and age. There are specific cryptocurrency payment gateways that allow establishments to accept payment via cryptocurrencies. These payment gateways can accept payments worldwide without sacrificing security, thanks to the protection of blockchain technology.
But How Does It Work?
Whenever the customer purchases any goods or services using crypto as payment, the transaction typically goes through the payment channel. It does so at a fixed exchange rate and converts to the traditional fiat currency. It’s a convenient process because merchants can prevent crypto’s volatile nature.
However, it’s important to note that some crypto payment gateways cannot automatically transfer crypto assets to fiat currency. Therefore, the merchant can hold the coins as long as possible, but only if they invest in a secure crypto wallet.
If you’re considering crypto payments, you’ll love how it has significantly lower fees than credit cards. Plus, most of these tools are highly customizable and creative native dashboards to keep track of your payments. First, however, it’s essential to consider that Bitcoin is the most commonly supported crypto asset. But don’t worry because there are still some gateways that allow users to pay using other currencies like Litecoin, Ether, and Bitcoin Cash.
Crypto Payments: The Process
Unlike other payment channels, there are certain risks when it comes to paying via crypto. But overall, two scenarios could take place:
If The Establishment Doesn’t Have A Crypto Wallet
- The customer chooses to pay via crypto at checkout — be it in-app, in-store, or on the web
- The customer provides the exact amount needed in the form of digital currency
- With the help of the particular crypto payment gateway in use, the asset is automatically converted into the establishment’s chosen fiat currency
- The money will enter the establishment’s account
If The Establishment Has A Crypto Wallet
- The customer chooses to pay via crypto at checkout — be it in-app, in-store, or on the web
- The customer provides the exact amount needed in the form of digital currency
- The establishment receives the cryptocurrency in their wallet and has the choice to store it or convert it to cash
Whichever scenario occurs, rest assured that the entire transaction will be transparent.
How Does A Product Quality For Crypto Payment Gateway?
Of course, there are certain conditions that a product must meet to qualify under the crypto payment gateway category. With this in mind, a product has to:
- Accept and process crypto payments with ease
- Conveniently connect the transaction systems with the designated e-commerce solutions
- Safely store the cryptocurrencies or exchange them for the appropriate fiat currencies
- Make sure that all transaction information is encrypted by using blockchain technology
Pros And Cons Of Payment Gateways
Pro: It eradicates the anonymity of who you’re transacting for maximum protection
Con: Crypto payment gateways are considered third-party apps
Pro: You can immediately contact the specific payment gateway platform for concerns and issues
Con: You must rely on the provider’s capability to provide a smooth and uninterrupted service
Pro: Users may send and receive payments from across the world
Con: Some gateways might market themselves as a need instead of just a convenience
Pro: The payee will instantly receive the funds
Con: Despite the significantly lower transaction fees, payers still need to comply with the additional charges for every transaction
Final Thoughts
It’s fine to feel skeptical about crypto payments because it’s still new, and it deals with money. And there’s no need to worry because crypto payment gateways are not essential or mandatory to carry out digital transactions — be it from the customer’s or the establishment’s side.
However, it’s not a surprise that it comes with great convenience; it removes confusion, anxiety, speculation, and disinformation from the table. In addition, the funds will instantly go into the payee’s account, so it’s a win-win for both parties. So go and try out buying and paying via crypto today — who knows, maybe it will be your new favorite mode of payment.
Author Profile
- London Copywriter
- Blogger and Educator by Passion | Senior Online Media & PR Strategist at ClickDo Ltd. | Contributor to many Education, Business & Lifestyle Blogs in the United Kingdom & Germany | Summer Course Student at the London School of Journalism and Course Instructor at the SeekaHost University.
