What is crypto payment processing?
Cryptocurrency becomes more widespread every year, so the number of its users constantly increases. Therefore, the amount of cryptocurrency transactions only grows. Crypto payment processing allows making such transactions.
A crypto processor is an intermediary service that allows merchants to accept payments in cryptocurrencies, exchange digital assets or buy crypto using credit or debit cards. It also registers the payer’s data, converts currencies, sends transaction data to the blockchain and registers confirmations from nodes, transfers, and accepts payments.
There are three types of crypto processors:
- Crypto-crypto payment processing. When a user buys something in cryptocurrency, a merchant receives payment in it. The processing service doesn’t include banking infrastructure or third parties, but it earns a little. The commission fee is approximately 0.5% with 0.1% on trading costs.
- Crypto-to-fiat processing. In this case, the user pays in cryptocurrency, and the merchant receives fiat money. The commission is higher: approximately 1%, but it includes banking and exchange risks. This type of processor is more complicated but, at the same time, more profitable.
- Fiat-to-crypto processing. You pay in fiat and receive cryptocurrency. Payment details screen will immediately display the chosen unit price, third-party fees, and the actual amount of crypto you get. The selected cryptocurrency will be credited to your wallet within the exchange.
Why should businesses use crypto processing?
Cash becomes less and less convenient these days. So electronic payments and cryptocurrency popularity cause a greater demand for the cryptocurrency payments. Luckily, there is still a place for the new players on the market.
Here are the main reasons for using crypto processing in your business:
- Speed. Sometimes it takes ages to withdraw money from the e-wallet. Doing it in crypto will save you an enormous amount of time.
- Cost efficiency. Crypto transaction charges up to 1% of the original money amount
- No blockings. Unlike banks or other processors, cryptocurrency allows spending money as a user wants it. As a blockchain wallet cannot block a transaction, a user can pay for whatever they want, including, for example, an online casino.
- No limitations. You can open nearly a whole world’s market. Crypto payments allow users to pay from any country, being ahead of the cards and e-wallets, which don’t offer such an option.
How can my business accept crypto payments?
You can either create your own crypto-processing platform or use a ready-made cryptoprocessing solution. The latter will save you loads of time and money, though. Just choose a reliable cryptoprocessing provider who will install such a service for you, add new cryptocurrencies, and support users.
For example, AB Exchange offers cryptoprocessing service. You can contact our team and improve your business.