Brian Wallace, Founder & President, NowSourcing
We all heard about cryptocurrency and how it took over the world of day trading, but did you know that it has made it into day-to-day use? Some businesses have started accepting crypto as a virtual form of payment. It is quick, easy, and secure. Curious about how it works?
Read on for a beginner’s guide to cryptocurrency payment gateways.
Cryptocurrency: What Is It?
Cryptocurrency is the latest development in online or virtual transactions. Being a newer form of digital currency, you may think it would not be very secure. It is one of the fastest ways to make purchases online.
Utilizing a secure form of cryptography cryptocurrency is not only a secure way to make transitions. It is a way to verify the ownership of coins and the transfer of coins from one person to another.
Finally, a significant difference is that it is not reliant on a centralized authority, which means it does not need a bank or government to maintain it.
What Makes Cryptocurrency Different?
It is not too significant of a difference between cryptocurrency and other traditional-style forms of payment for transactions within the U.S. The big difference lies in international transactions. With traditional forms of payment, international transactions can take a long time to process. On top of this unfortunate loss of time, the transaction becomes less secure as it is passed through various forms of intermediaries.
Since cryptocurrency is not reliant on a centralized authority, it does not have to pass through various forms of intermediaries. Ultimately, it significantly speeds up the process of international transactions while simultaneously making them much more secure.
What is a Cryptocurrency Gateway?
How can my business accept cryptocurrency? It is simple with a cryptocurrency payment gateway. Like credit cards, cryptocurrency gateways are digital processors companies will use to accept cryptocurrency. When someone pays your company in crypto, your business will receive fiat money.
While there are other ways to accept cryptocurrency without a gateway, using a gateway is the most efficient and easy way to do it. Many businesses have already started implementing cryptocurrency gateways as transactional facilitators, but how exactly does it work?
How Does it Work?
Cryptocurrency gateway companies do a lot of the leg work for you to broaden your company’s ability to accept currency without having to add any personnel to your payroll.
Essentially, when a customer pays you for something with an amount of cryptocurrency that is equal to the cost of your products based on the fair market value at the moment, the gateway will then convert their payment into any currency of your choosing. After that, they deposit the money into the bank account you gave them on the specific days of the month that you previously chose to have on your contract.
Why You Need a Cryptocurrency Gateway
Cryptocurrency is quickly becoming a widely accepted form of currency around the world. With its speed, security, and ease, it is a no-brainer to at least consider implementing a gateway into your accepted forms of payments. Here are a few advantages to gateways that you should consider for your business.
- You do not have to know all about cryptocurrency. A gateway has that knowledge for you.
- Customers can remain anonymous, which is why they like cryptocurrency.
- While customers stay anonymous, you still have someone to turn to if things go wrong (the gateway).
- The risk of losing money because of crypto payment is eliminated because the gateway always pays you based on the value of crypto at the time of the transaction.
Choose the Right One For You
Since cryptocurrency gateways are third-party companies, each company will offer slightly different features than another. So it is essential to choose the one that is right for you. Here are a few things to be on the lookout for.
- 24/7 service and customer service
- Auto forward: Your payments automatically get transferred to your bank account
- Multi-coin wallet
- Point of Sale cryptocurrency in-person transactions
- Cryptocurrency vault
- Auto coin conversion
The Bottom Line
Cryptocurrency is on the rise. With more and more people starting to use it every day, businesses have caught on and are beginning to accept it as a form of payment. It will be a widely accepted form of payment soon, and you do not want your business to be among the last to hop on board. So, learn a bit of crypto, implement a cryptocurrency payment gateway, and enjoy while your company sits at the forefront of a new movement of virtual transactions.
About the Author: Brian Wallace is the Founder and President of NowSourcing, an industry leading infographic design agency in Louisville, KY and Cincinnati, OH which works with companies ranging from startups to Fortune 500s. Brian runs #LinkedInLocal events, hosts the Next Action Podcast, and has been named a Google Small Business Adviser for 2016-present. Follow Brian Wallace on Linked