Pros, cons, and pitfalls of crypto processing
Goods and services are widely offered for crypto, and merchants understand that digital assets are more convenient than fiat money from the viewpoint of fees and transaction speed. Hence, crypto processing is a factor to divide merchants into progressive and conservative. The first group is skyrocketing. For instance, in 2020 the number of BTC-accepting businesses reached 15 174 that is 94% larger compared to 2019. Meanwhile, crypto currency merchant processing is linked with both pros and cons; hence, business owners need to dive into the issue deeper.
What is crypto processing? The importance of being progressive
Many people know that processing is an activity, oriented to deliver payments from buyers to merchants; hence, the sphere of crypto processing includes handling of payments connected to virtual currencies. Providers connect a business to a crypto processing gate to empower merchants with a brand new capability. Furthermore, providers offer different solutions for merchants – they may hold received virtual currencies, exchange digital assets to other virtual currencies, or sell them for fiat money.
Bitcoin still dominated the sector (91% of crypto payments are executed in Bitcoins), but merchants step-by-step started to accept other liquid digital assets.
Key-note benefits of crypto processing
While talking about the most advantages a merchant obtains from crypto processing, the following pros are distinguished foremost:
- The increase of customer base. Cryptocurrencies do not accept any limits, including geographical ones; hence, crypto processing empowers merchants to offer their goods and services worldwide.
- No cancels. While talking about banks, both purchasers and sellers may face problems with transactions, but crypto payments use revolutionary mechanisms to make every transaction successful.
- Low fees. Crypto processing implies no third parties, connecting customers and merchants directly; hence, fees for transactions are much lower compared to traditional assets.
High speed. The fastest crypto processing makes it possible to obtain payments within minutes; therefore, both merchants and customers save their time.
Main obstacles connected with crypto processing.
While speaking about the cons and pitfalls of crypto processing, the following aspects should be taken into account:
- Volatility. Cryptocurrencies are volatile; hence, most merchants prefer to sell digital assets for fiat money instantly.
- Scalability problems. Blockchain networks have limited capability from the viewpoint of transaction processing. For instance, Bitcoin may process 4-5 transactions per second, Ripple – about 1500, EOS – more than 4000, while VISA’s scalability is 24 000 transactions per second.
- Legislation. Most countries are on the way to accept digital currencies as legal payment instruments, but the number of countries to ban crypto payments is still large.
Moreover, there are different crypto processors, and a merchant needs to come up with the best solution.
B2BinPay to revolutionize the sector of turnkey solutions
The company offers the ahead-of-its-time solution to empower merchants with the most beneficial conditions. Crypto payment processing includes more than 20 virtual currencies, quick and secure transactions, 24/7 support. Merchants obtain all necessary information at their fingertips.