Crypto asset payments have all seen significant growth in recent years. Digital assets enable faster, more flexible, and more innovative payments and ways of doing business.
In addition, retailers, individuals, and businesses are increasingly accepting crypto assets as payments. Payment gateways are making it easier to accept crypto as payment by eliminating the need for you to copy addresses. Crypto debit or credit cards also make fiat payments possible with the crypto in your linked account.
Understanding crypto assets
Bitcoin began with a white paper written by “Satoshi Nakamoto” published in 2008 (Schar,2018). It was sent via a cryptography email list and looked like academic work. The original goal of Bitcoin’s inventors was to create a cash-like payment system that allowed for electronic transactions while also retaining many of the benefits of actual cash. To better comprehend the unique characteristics of physical monetary units and the urge to generate digital currency.
How do crypto asset payments work?
Payments through bitcoin will be done by firms that accept the perceived risk of crypto asset payments by facilitating transactions between merchants and their consumers through their wallet(s). At its most basic, a crypto payment transfers crypto assets from one wallet to another.
Why does an individual/business need to understand all these different payment methods or systems? Times are changing, and one needs to understand or adapt to the times. With the world moving forward in the direction of digital assets.
Gone are the days of taking your chequebook into places and purchasing items or wants and needs by writing a simple cheque. The times moved on! The next best thing in your hand was your credit card, the next big hype.
Yet again, the time has moved on! People are now paying with their mobile phones, and the card in hand is almost non-existent.
Has time moved on again? It now allows the world to pay via crypto exchanges at no extra charge? Indeed, it has.
Step-by-step process for processing crypto payments:
- Your customer / client decides to make the payment via crypto asset and would like to check out (in-store, online or in the app).
- The amount payable would be equal to the fair market value of the digital asset at the moment of the exchange.
- The crypto asset payment provider promptly transforms the payment into the coin you specify.
- The funds are added to your provider’s account and deposited into your bank account at intervals determined by your service contract.
4 Benefits of using a crypto payment method
- A cryptocurrency transaction is typically a quick and simple process. Bitcoins, for example, can be transferred from one digital wallet to another using nothing more than a smartphone or computer.
- Every cryptocurrency transaction is recorded in a public list known as the blockchain, which is the technology that allows cryptocurrency to exist. This allows you to trace the history of Bitcoins and prevent people from spending coins you don’t own, making copies, or undoing transactions.
- Blockchain aims to eliminate intermediaries such as banks and online marketplaces, therefore there are no payment processing fees.
- Cryptocurrency payments are becoming more popular, particularly among large organizations and industries.
Traditional payments, particularly international transactions, are frequently fraught with high risks and restrictions.
A decentralized payment gateway, such as Coinbase and Valr Pay, accepts multiple different cryptocurrencies. Payments are also much safer and less vulnerable to malicious attacks due to the system’s decentralized nature. There is no human element involved, which reduces both fraud and mistakes. You cannot change a payment once it has been recorded and confirmed on the Blockchain. Add to that the elimination of financial intermediaries reduces payment administration and red tape, and you have a very satisfying cross-border payment experience for both consumers and merchants.
No more frozen accounts owing to hidden terms, and no more restrictions based on your location. It’s straightforward, low-cost cross-border payments that arrive swiftly and securely.
You are welcome to contact the CountDeFi team to find out more.
(Disclaimer: This does not constitute financial advice)