As people around the world learn more about cryptocurrencies, the more people are interested in paying with digital coins. Fiat money against cryptocurrencies does not look so attractive anymore, because the latter allow to make payments faster and relieve business from a significant part of operational expenses — fees. Cryptoprocessing is used for this purpose. In this article, we will consider pros and cons of this method.
What is cryptoprocessing
It is a payment instrument in which cryptocurrencies act as a payment method. However, not all digital assets are used, but the most popular ones like BTC, LTC, ETH, and others.
Cryptoprocessing provides acceptance and processing of cryptocurrency transactions, acting as the only intermediary between the buyer and the seller.
The obligations of such a service include accepting digital coins from the buyer, transferring them to the merchant’s wallet, and exchanging the received funds into fiat money or stablecoins — coins tied to a fiat currency (e.g., the US dollar).
Just like traditional processing, crypto processing includes a payment gateway. It is the one that is integrated into the merchant’s website or a platform. Thanks to the gateway, all cryptocurrency payments are automated.
The benefits of cryptoprocessing
Among all the benefits of crypto processing, there are four that are most important to businesses.
Attracting new customers. Consequently, increasing company sales. Digital assets are not tied to any particular country, so you can accept them from anywhere in the world.
Transaction success. Chargebacks, failed transactions are a frequent problem companies deal with when using fiat. Blockchain technologies used by cryptoprocessing do not allow chargebacks, and the payment always successfully reaches its recipient.
Beneficial cost of fees. Crypto processing charges a small fee for a transaction due to the fact that there are no intermediaries other than the service itself. For example, cryptocurrency processor 0xprocessing charges from just 0.4% for a transaction. As a result, the seller will get more for selling goods in cryptocurrency than for paying by banking card.
Disadvantages of cryptoprocessing
Crypto processing is always looking for quality service, trying to solve certain problems. However, before integrating crypto payments, a merchant should still be aware of all the pitfalls that can be encountered.
Fluctuating cryptocurrency rates. The rate of digital assets is somewhat more prone to volatility than the same dollar exchange rate. Cryptoprocessing has solved this disadvantage by allowing you to convert cryptocurrency right into fiat or stablecoins.
Blockchain network scalability. Compared to VISA, cryptocurrency transaction processing is much lower. VISA can process 24,000 transactions per second, while the bitcoin network can only process 4–5 transactions. Other networks can do more, such as EOS processing more than 4,000, but it’s still small.
Government regulation of cryptocurrencies. Not all countries make it legal to accept payments, but most states treat crypto assets positively.
Crypto processing is a solid solution for businesses of any model. If you want to connect cryptocurrency payments, choose a crypto processing that will be exactly right for you in terms of conditions. In this regard, 0xprocessing is the most technological and convenient cryptoprocessing.
The service offers favorable conditions for clients: more than 40 popular cryptocurrencies, volatility risk control system, free integration and full support at all stages, which means the seller does not need to understand technical issues.
Moreover, today this is the only provider that offers support of Web 3.0 wallets, which make payment process easier for your customers.