One thing is to know what cryptocurrency is, and another is to use it as a payment method. Yes, crypto money is a risky asset because of volatility. But what if we say there is a solution that mitigates this risk, automatically converts crypto to fiat, and empowers your financial ecosystem?
Crypto payments now are available for large corporations and small and medium businesses. Read this article to learn more about crypto payments, gateways, and API by Corytech, to find new opportunities for your business.
Why Accept Crypto Payments?
Cryptocurrency is an innovative and intriguing payment method. More and more people enter the crypto market and start using crypto money. When a customer has some crypto in the wallet, he or she wants to spend it on goods and services. Here are several reasons to start accepting crypto payments for business.
A data breach is a constant pain point for online payment systems. Despite all the modern protection technologies, criminal minds constantly look for new ways to steal data and money. The blockchain verifies and records each transaction and it cannot be hacked that easily. So, crypto payments are less vulnerable to ID thefts.
Bank transactions can be immediate — but often it takes some time, especially when it goes to international payment. Cross-border payments can delay for hours and in some cases for days. With crypto payments, the transaction can be completed in several minutes, no matter which countries are involved.
Merchants are responsible for paying transaction fees and should also care about the processing software, its setup, and technical support. Each participant in the transaction chain — bank-sender, bank-acceptor, and processing service — charges some percent for each transaction, up to 3% in total. Payment services like PayPal charge even more. Crypto payment goes without or with a minimal fee, of less than 1%.
How Does A Crypto Payment Gateway Work?
Crypto Payment Gateway is a service that allows accepting crypto payments through websites. Additionally, the service can automatically change crypto to fiat and vice versa.
A payment with cryptocurrency is very easy and can be completed in just a few clicks. The flow can vary for different crypto payment providers but the general logic is as follows:
- A client decides to pay for a service or good with cryptocurrency.
- The payment recipient sends a digital invoice to a client to pay using the crypto payment processor.
- A client completes the necessary actions and confirms the payment.
- A cryptocurrency lands in the payee's digital wallet.
It can look like this: you want to pay with crypto and select this option at the checkout. The crypto payment processor sends you an invoice — frequently it is just a QR code. You scan it with your app and confirm payment. Ready, a payment is sent.
Usually, a price is shown in fiat currency, like $10. The system automatically converts fiat to crypto by a market course.
Advantages Of Crypto Payment Gateways
Crypto payment gateway reduces the risk of volatility or quick price change. It pays back to you immediately, so there is just no time for price jumps. If you do not understand what price volatility is, you need not: your gateway can automatically change crypto to fiat.
Also, a crypto payment gateway works for you when there are on-business hours in your time zone. A gateway can process transactions automatically.
Disadvantages Of Crypto Payment Gateways
A crypto payment gateway works as a third party in the transaction. It means, first, the higher transaction fees — but still lower than for fiat currencies.
Second, it means the growing vulnerability to hacker attacks. The use of a payment gateway requires some trust from the business owner. It should work flawlessly to receive payments 24\7 from different countries.
Automating Crypto To Fiat Payments
Choose A Crypto Payment Provider
Every time, when you choose a service provider, you need to check the company's reputation, user feedback, and other proof. Here is the list of other criteria to choose a crypto payment provider:
- Fees — check how much you will pay;
- Transactions speed — do not use slow services;
- Number of cryptocurrencies available - do not limit your business to Bitcoin only;
- Customization opportunities — you might want to adjust it for your business;
- Support – one day you will need it badly;
- Aesthetic usability — choose the design you like.
Check Your Country's Cryptocurrency Regulations
Crypto payment gateways can work all over the world. However, different countries treat cryptocurrencies differently. Before you start accepting cryptocurrency payments, check the laws in your country to avoid problems for you and your customers.
Ensure Your Customers Have Multiple Cryptocurrencies Options
An ability to choose among several cryptocurrencies is an important option for your clients. Of course, most users have some Bitcoin. However, if you do not add Ethereum and some stable coins, you can lose a part of your clients.
Clarify Automatic Crypto To Fiat Converting Options
There are several possible ways to convert your crypto into fiat currency. For e-commerce, the best method is an automated conversation with a crypto payment provider. Check a chosen provider before installing it to accept crypto payments on your website.
Crypto To Fiat Payments Use Cases
Enhanced Cross-Border Payments
Most online businesses want to sell globally, but they face the issue of cross-border payment delays. The payment processing can take 4-6 days. Moreover, cross-border payment in fiat money involves several proxies, which means the rowing processing costs.
Crypto payments are cheaper and faster when you pay from one country to another.
Optimizing Transaction Fees
The more proxies take part in the transaction, the higher the fee. Each intermediary charges a service fee. Usually, it is not high, but in total it can make several percent of the payment. In crypto payment, the maximal number of participants is three: payer, payee, and crypto payment gateway. If you accept crypto payments via your website, you can have lower transaction fees.
Maximizing Payment Security
Blockchain is very hard to hack because it does not have a central data center. It effectively increases data safety. At the same time, banking processing services often face hacker attacks or other forms of data breaches.
How Corytech Helps To Empower Your Financial Ecosystem By Accepting Crypto Payments
Easy integration into your existing financial ecosystem
Corytech provides an API for crypto payments integration on your e-commerce website. It is easy to integrate because of the detailed onboarding guidelines provided by the link.
Customizable API solution
Corytech API is easily customizable. You can edit code and customize API as you want to make it the best fit for your business.
Fair transaction fees
Corytech offers low transaction fees. Yes, these are fees, but it is cheaper than fiat money transactions, especially international ones.
Excellent support 24/7
A good support team can be invisible until you have a critical problem that can damage your business. Corytech provides a skilled support team available 24\7.
Crypto Payments FAQ
Is accepting crypto payments legal?
No government in the world regulates or backs crypto payments. So, there is no uniform law for crypto payments. Checking local legislation is necessary for launching crypto payments for your business.
What companies accept crypto payments?
According to Deloitte, at the end of 2020 more than 2000 US businesses have already accepted Bitcoin. Wikipedia opens the list. Blue chip giant Microsoft and AT&T, an American telecom company, follow next, and Overstock, a large retailer, too. Add to this list fast-food networks Burger King, KFC, and Subway.
Is there an API to accept crypto payments?
API, or application programming interface, is a mechanism that allows two applications to communicate with each other without human interference. Via API a website owner can integrate many useful functions and services.
Of course, many crypto payment providers offer special APIs to accept crypto payments. This API enables a website owner to connect to the server with the help of some programming language and automate transactions.
Corytech provides one of the top ten best APIs for crypto payments. Corytech API is easy to set up, and the detailed documentation answers all possible questions. You can find the onboarding guidelines and specifications on this page.
While cryptocurrency is a relatively new payment method, many small and medium businesses use it to accept crypto payments. Crypto payments are faster, cheaper, and more secure than most bank-supported payments. To accept crypto payments on a website, a business owner should integrate it via API. Corytech API is easy to install, there is no need to hire a software engineer to do this.
Together with API, Corytech offers fair fees, customization, and excellent 24/7 support. Press the “Contact Us” button to request a personalized demo and see how Corytech can help you.