Many people have become interested in cryptocurrency and have been able to see its convenience. Some things remain unclear, but now the topic has become even more relevant and popular due to ongoing world events and the restrictions and changes that follow. Cryptocurrency payments can ensure the stability of the service and its smooth operation.
The development of E-commerce (a business involving the sale of goods and services online), has led to the spread of payment for goods and services in digital currency. This method has already been adopted by many entrepreneurs and users and has proven to be safe and reliable. A platform or service that uses digital currencies for sales makes it easier for both themselves and the customer to complete transactions. An online shop that uses cryptocurrency attracts a large number of people.
In this article, we will tell you about the advantages and disadvantages of cryptocurrencies and how to connect payment with them to a website.
A cryptocurrency is a digital asset that is protected by cryptographic protocols that ensure its one-time use and protect it from counterfeiting. Cryptocurrency payments are based on DLT technology (Distributed Ledger Technology), which is a database that exists in different locations on the network. It makes the cryptocurrency decentralized and unregulated by any authority, allowing it to be resistant to government manipulation.
Transactions of conventional and cryptocurrency payments differ significantly. The main difference is in the type of currency used: the former uses fiat currency (legal tender, the value of which is set by the authorities) and a credit card to pay, while the latter transfers crypto using a digital wallet.
A digital wallet is a software designed to accept and pay in cryptocurrency and store it. Its operation differs from a bank account only in that it is decentralized and not tied to a specific financial institution.
There are two types of digital wallets:
For one currency. A representative is the DASH wallet. These wallets accept and store only one type of currency;
For multiple currencies. Representative - Blockchain Wallet. This type of wallet can hold a large number of currencies.
To exchange crypto to fiat, you only need to provide or send your digital wallet address to the person who wants to make the payment. In the case of an existing merchant account, the exchange of cryptocurrency to the fiat currency chosen by the user will happen automatically.
With the popularization of crypto processing, a huge number of cryptocurrencies have appeared in the world. The number of their owners has also increased dramatically (now reaching 300 million). Many platforms offer their services for transactions.
The best-known cryptocurrencies are:
Bitcoin (Beta C and BTC are the official names) is by far the most used type of cryptocurrency. There are already 16.5 million bitcoins in international circulation. The value of one bitcoin recently reached $50,000. Around 400,000,000 bitcoin transactions take place every day;
Ripple (XRP) is the second most popular cryptocurrency. Based on surveys, 1.8% of owners of this cryptocurrency have used it for online payments;
Despite the huge number of people already using crypto, many still have doubts about its reliability. We will now tell you about the advantages of this payment system so that you can take advantage of the information you receive.
Of the advantages of cryptocurrency (of which, in fact, there are countless), we will list only the main ones:
Low fees. Unlike bank transactions with high fees, which are high because the bank acts as an intermediary, the fees for accepting cryptocurrency are minimal. A company that decides to accept payments in this way saves significantly on this point;
High transaction speeds. It usually takes only a few seconds to complete a transaction. Recall that some basic bank transactions (e.g., transfer from one account to another) can take several days, which is not always a plus;
Non-refundability. The encryption key installed, which protects users' funds, also prevents a transaction from being reversed once it has been completed. This characteristic is a good option for high-risk businesses (high risk is an activity that has a high probability of encountering difficulties, including user dissatisfaction, probability of bankruptcy, or legal problems).
From the above merits of cryptocurrency payment systems, we can conclude that they are an ideal way to store and exchange. But, like anything, they have a downside, which you also need to be familiar with to avoid negative consequences.
And here are some of the downsides:
Many countries still haven't recognized cryptocurrency as an official way of making payments. Therefore, it does not yet offer the same free use as Paypal or Webmoney services. But given the speed at which cryptoprocessing is developing and the increasing number of companies accepting bitcoin, the cryptocurrency sphere could become legal in the future;
Instability. Working with cryptocurrency can make millions as well as lose them. By simply storing cryptocurrency in a digital wallet, there is a risk of losing huge sums of money. But many experts are working to stabilize the rate and help users;
High withdrawal fees. As we mentioned earlier, internal transaction fees are very low. However, withdrawing digital funds can cost a person anywhere from 2 to 5% of the transaction amount.
We have tried to give you a comprehensive introduction to cryptocurrencies so that everyone can conclude for themselves whether or not to work with cryptocurrency payments.
A payment gateway is a software for secure payment acceptance. It allows you to accept bitcoin and other digital currencies for payment on your website. The API service does not require any independent development. A QR code is often used for payment. Payment systems with digital acceptance have many advantages over traditional payment systems.
The MEEG service provides a convenient payment gateway. All you have to do is register, integrate with your website or application using API and use the ready-made modules!
That's all you need to know to connect cryptocurrency as a payment method on your web site. Remember that the world does not stand still. Online shops and websites are constantly updating their payment systems to provide a comfortable shopping experience for users. A website that has integrated cryptocurrency payment acceptance has various advantages over the rest. Customer comments confirm this. The cryptocurrency payment process is convenient and simple.
We hope that the content of our article has helped you to get to know crypto processing and its main functions and features better!