With traditional banks charging too much for cross-border payments, people are turning to digital alternatives that offer better security and efficiency. One such solution is blockchain’s cryptocurrency payment gateways that allow organizations of all sizes – from businesses in need of global reach or individuals seeking Independence abroad – to send money across borders without unnecessary intermediaries.
Problems of the cross-border payments market
One of the biggest challenges of conventional payment gateways, and traditional cross-border payments, in general, is opaqueness in how transactions move from one end to the other.
Under existing conventional systems, there is no direct link between the seller and the customer. The presence of multiple intermediaries only raises fees to the transacting parties. This also creates security risks that can lead to loss of funds and affect customer confidence in the company they buy from. The business is also always at risk of losing money if the intermediary decides to freeze funds for whatever reason. This is why cryptocurrency payment gateways are gaining traction quite fast.
Merchants are excited about the future of crypto payments because they can now take advantage and offer their customers a secure payment platform. Decentralized gateways allow for easy integration, high transaction speeds (low fees), and protection from hacks or 51% attacks with blockchain’s intrinsic security features.
Crypto payment gateways are becoming more popular as businesses embrace them and venture into developing their cryptocurrency methods. They allow users to send or receive digital currencies like Bitcoin, Ethereum, etc., through an interface that allows for quick transactions with minimal fees involved in each transaction type.
Let’s now take a detailed look at some key factors that make cryptocurrency payment gateways better than conventional ones.
Cryptocurrency payment gateways don’t have chargebacks
Crypto payments are irreversible. This is a huge advantage for businesses because it removes the customers’ ability to dispute charges and get refunds once processed through the payment gateway. While this also calls for fidelity in the company, it is protected from scammers. Many rogue customers order products, make payments, and then make a chargeback on the same, leading to massive losses for the business involved. Essentially, companies have the confidence to deal with customers from around the globe without fear of losing money.
Privacy during transactions
Decentralized payment gateways are the future of financial transactions because they do not require you to give out personal information. They are designed so that the seller and the customer can both get what they want without ever revealing who they are to each other. This is a plus for businesses because there are customers, especially those buying sensitive products, that don’t want to reveal their identities during transactions. This is an advantage that you can’t get with centralized payment gateways. Since transactions are in fiat, there is little that a centralized payment gateway can do to create transaction anonymity.
Crypto payment processing is faster than traditional methods. Merchants can accept cryptocurrency and quickly convert it to fiat currency at any time, which could be helpful for those who want their money in fiat. Since there is no cash processing through intermediaries, as with conventional payment gateways, transactions are almost instantaneous.
Given that it is in the interest of a business to receive payments as fast as they are made, this is a significant advantage of cryptocurrency payment gateways over their centralized counterparts.
They are cheaper
All payment gateways have a profit motive to them and, as such, have fees. However, decentralized payment gateways have lower fees than their conventional counterparts. That’s because there are fewer intermediaries. With centralized payment gateways, money has to flow through multiple intermediaries, including banks, which ultimately adds to the total cost. You do not have to deal with this issue when using a decentralized payment gateway. That’s because the payment is in crypto, which does not require any clearing house. The result is that the overall costs are lower.
For a business, this is a plus in two ways. Firstly, it incentivizes customers to spend since their total costs are lower. This can open the way for new business. Secondly, the company can profit from higher margins since transaction costs can add up to a lot of money when a business handle loads of transactions at any given time.
Easier and fun to use
When using a cryptocurrency payment, the customer has many more options, making the payment process easier and fun. For instance, a customer can choose to make the payment via SMS. For some payment gateways like Payaabb, customers can even make payments through social media platforms such as WhatsApp and Telegram. This is quite exciting, especially for young people who are always on social media. The idea of being able to make payments without leaving your socials is fun. For a business, this can translate to more business that only relies on conventional payment gateways to receive payments.
They are easy to integrate
If you have used a conventional payment gateway, then you know that integrating them into a business website is not easy. You need coding skills to do it. Otherwise, you have to pay someone for it. This is not the case with cryptocurrency payment gateways. Most of them are designed so that even with basic coding skills, you can do it. For instance, Payaabb is one of the easiest cryptocurrency payment gateways you can integrate. This gateway is designed so that anyone can add it to their website and start accepting payments immediately.
Cryptocurrency payment gateways have the edge over their centralized counterparts. If you want to start accepting payments in crypto, one of the best cryptocurrency payment gateways you can consider is Payaabb. It is secure, low-cost, accepts over 400 cryptocurrencies, and has 24/7 support if you experience problems.