What is crypto payment processing?
In short, crypto processing is the processing of non-cash payments in cryptocurrency. Virtual assets have become a popular payment instrument in e-commerce, leading businesses to integrate crypto processing software into their systems. Cryptocurrencies are widely used for transactions on the Internet and have become a popular payment method for buyers and sellers. Since the first cryptocurrency processor appeared in 2011, a number of platforms have emerged to process and connect cryptocurrency processing.
Crypto payment service providers: who are they?
BitPay is one of the first crypto payment companies in the world that has been operating since 2011. The service has its own Visa card, which allows users to automatically purchase goods and services for cryptocurrency. You can buy assets on a cryptocurrency exchange, store them in your BitPay wallet, and then pay for the services and goods you need with them. BitPay charges a 1% transaction fee.
Coinbase is a platform that offers its users an electronic wallet and access to a wide range of cryptocurrencies. Coinbase operates following the rules of regulators and is licensed to operate in many US states. Coinbase fees for depositing and withdrawing money depend on the type of wallet, country of residence, and the currency chosen.
The CoinPayments cryptocurrency payment gateway allows storing digital currencies, accumulating capital, transferring funds, and paying them out. The service supports hundreds of cryptocurrencies and many exotic altcoins. You can easily convert crypto to fiat and vice versa.
CoinsPad provides crypto processing services for companies and individuals. This service accepts payments in more than 30 types of cryptocurrencies and automatically converts them into fiat currencies. Customers can pay for goods and services and receive funds to their bank account in the national currency of their choice.
The challenges of cryptocurrency payments
The volatility of cryptocurrencies can significantly reduce the profit of merchants. As cryptocurrencies fluctuate much more than fiat currencies, businesses may experience cash flow problems when the crypto value falls.
Due to the high volatility of digital assets, payment speed becomes critical. BTC can process around 7 transactions per second, which is catastrophically low for the demand from network users. The ETH processes up to 100,000 transactions per second, with a 13-second approval rate, while the Ripple (XPR) system processes up to 1,500 transactions per second. At the same time, Visa, a global processing network, can handle more than 65,000 transactions per second.
Payments in cryptocurrencies are suspicious and distrustful for many users, while the government is still in the process of developing a regulation of this system. However, cryptocurrency transactions may be subject to legislation that varies from jurisdiction to jurisdiction.
The active growth in the influence of cryptocurrencies is attracting both the number of people investing in cryptocurrencies and the number of companies accepting them as payment. When companies decide to accept cryptocurrency as a payment method, they need new infrastructure, and this is where WhiteFlo crypto payment software comes into action. WhiteFlo is a white-label product aimed at providing efficient software solutions for companies involved in crypto payment processing. Advanced technologies continue to evolve and gain momentum forcing businesses to adapt to new realities.