Crypto payment processing involves handling transactions conducted using cryptocurrencies.
With the rising popularity of crypto payments, conventional payment service providers are also entering the arena of providing crypto payment processing services.
Advantages and disadvantages of crypto payment processing
Although there are numerous advantages associated with processing crypto payments, there are also several potential drawbacks to contemplate when deciding on the suitability of this approach for your online business.
Advantages:
1. Decentralization
Cryptocurrency payments operate without central control, enhancing transaction speed, affordability, and security.
2. Swift and secure transactions
Crypto transactions boast rapid processing, leveraging blockchain technology’s robust security measures.
3. Cost efficiency
Lacking intermediaries, crypto transactions generally incur lower fees compared to conventional methods like credit cards and bank transfers.
4. Global reach
Cryptocurrency payments transcend geographical boundaries, permitting worldwide transactions, a boon for businesses with a global presence.
5. Privacy
Certain cryptocurrencies offer increased privacy, catering to individuals valuing discretion and data security.
6. No chargebacks
Unlike traditional payments, crypto payments are immune to chargebacks, shielding companies from potential revenue loss.
Overall, the advantages of crypto payment processing present an appealing solution for businesses aiming to streamline payments and cut costs.
Drawbacks:
1. Volatility
Cryptocurrencies are renowned for their volatility, making it exceedingly difficult to buy and sell assets like Bitcoin or Ethereum at consistent prices. For that reason, accepting cryptocurrency payments exposes merchants to the risk of receiving less than expected.
2. Scalability
Cryptocurrency networks often lag behind traditional fiat systems in terms of processing speed. For instance, the Bitcoin network handles a mere 4–5 transactions per second, while Ethereum manages up to 30 transactions per second. Ripple can process up to 1,500 transactions per second, and EOS up to 4,000. In stark contrast, Visa can handle an impressive 24,000 transactions per second.
3. Regulatory hurdles
Given that cryptocurrencies lack legal tender status in most jurisdictions, merchants who accept these payments can face legal complexities. Moreover, challenges arise when calculating and settling taxes for income or profits obtained through cryptocurrency transactions.
How to integrate cryptocurrency payments on your website:
You can implement cryptocurrency payments on your website through various approaches. The simplest method involves creating a cryptocurrency wallet and sharing its link on your online store’s page.
Another option is to get a custom payment solution developed, although this one tends to be costly and typically becomes financially viable only for businesses with substantial trading volumes.
For a straightforward and pragmatic solution, consider integrating a specialized cryptocurrency payment service. This software-like tool streamlines payment processing and division.
Typical features of such services encompass recording payer information, real-time conversion at prevailing exchange rates, validation procedures, receiving funds from buyers, transmitting accumulated funds to the merchant’s cryptocurrency wallet, confirming successful payment processing, and recording transaction details on the blockchain.
Despite the ongoing advancements in cryptocurrency payment processing, finding a suitable and user-friendly service remains a challenge. Obstacles may include intricate verification processes, stringent connection prerequisites, complex integration procedures, and no fast support in languages like Ukrainian and Russian.
Cryptocurrency Processing at SharPay:
If you’re looking to start accepting cryptocurrency payments, SharPay is one of the most user-friendly options to explore.
SharPay’s crypto processing is flexible enough for any industry and requires only basic details about your business to get set up.
SharPay is a technical platform designed for developers that offers a simple and straightforward interface for automating tasks involving cryptocurrencies.
SharPay’s cryptocurrency processing has many benefits besides its ease of integration, including a high acceptance rate, assistance with integration, no exchange rate risks, swift support without language obstacles, an intuitive payment page interface, a guarantee of user security, and speedy withdrawal of funds.
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