What started as the basis of blockchain technology, which is essentially a digital ledger that has the ability of recording and authenticating high-volume digital transactions is now spreading all over the consumer world and industries. Blockchain has come a long way from its starting stage. The funding and investing of blockchain startups, developers, and other companies in the crypto space, irrespective of the fact that all currencies dropped significantly from their 2018 record high, has doubled in 2020 compared to 2017.
According to CB insight’s Market sizing tool, annual expenditure on blockchain products will almost reach $16B by 2023. Industries ranging anywhere from gaming to cannabis, or the insurance space are experiencing a rise in blockchain applications and new products. Bitcoin’s emergence and the security of the network itself helped prove blockchain’s application in the finance industry, but the business sector has soon realized that this technology could help transform their industry in more ways than one.
Before we get into what a crypto payment system is, let’s look into the modern-day eCommerce industry.
Modern-day eCommerce industry
Before the modern world called them entrepreneurs or businessmen and women, all store and product resellers were known as merchants. In today’s world, if you are working towards an idea and finding ways to turn it into a valuable business, then you are a typical example of a modern-day merchant, that is trying to improve society by offering something that would benefit society itself.
Either you are creating art, music, a new form of medicine, technology, a new device, or an invention that would be useful to the public, there is not much difference. You are utilizing your skills and imagination to create value; you are making the product or service available to others in return for monetary value. This means that you are a modern-day merchant making the craft of trade in a public space.
What is a crypto payment system?
A crypto payment system allows eCommerce merchants, brick-and-mortar shops, and all other types of businesses to accept cryptocurrencies as payments. Recently, most payment processors were only processing payments with cryptocurrencies such as Bitcoin, Litecoin, Bitcoin Cash, Ripple, Ethereum, etc. These types of payment systems make it easier for the immediate transactions of crypto when paying for products or services. They allow businesses to automatically process these transactions and they also make certain tools available to report and help run the payment process as smoothly as possible.
Crypto payment system makes sure your business establishes a secure and quick process and environment for transactions to take place. While focusing on challenges involved in accepting crypto payments like Bitcoin, merchants are looking for more ways to take advantage of the hype flooding the crypto space. Most businesses today are looking for the most convenient ways to include those customers, who want to transact in cryptocurrencies with the help of a reputable crypto gateway.
How does it work?
There are no strict rules that you have to follow when it comes to crypto payment system integration into your business. It works exactly like the fiat transaction payment processing from the consumer point of view. The only notable difference is that crypto payment systems don’t use any type of card (debit or credit) but rather just use digital wallets. The wallets can support multi-currency or just a single currency such as Bitcoin. Cryptocurrency payments are immediately processed which is an advantage and the main role of a crypto payment system is to process the transaction and confirm the finalized payment to the merchant.
This is how the crypto payment system works in online shopping:
- When the customer places an order on the website, the web browser or the app immediately encrypts the payment details. It sends the crypto payment and the transaction details to the seller’s web server using an SSL connection.
- Once the merchant or the seller gets the customer’s crypto payment details, the website automatically transfers these to the admin of the platform using the encrypted SSL.
- The admin of the website using the crypto payment system then transfers the details to the payment processor.
- The payment processor receives the requests, checks, and approves the code. The approved code has all the details about the final transaction status.
- The payment processor then sends the approved code to the system on the website which is then forwarded to the user as confirmation on the user’s app or website account.
Advantages of Crypto Payment Systems
When using the advanced crypto payment systems, you benefit in more ways than just one:
- Crypto Payment systems provide merchants with the most advanced and efficient technology.
- They are entirely transparent.
- They provide instant crypto to fiat exchange.
- They provide fast and secure full attention service.
- They enable merchants Point of Sale (POS) terminals the use of simple and fast physical transactions.
- It is easy to set up, it doesn’t affect the retailer’s privacy and it lowers transaction times and fees.
- Crypto Payment system enables a unique and a perfectly safe user experience in person or by shopping online
Is crypto changing the financial industry for good?
One-third of the entire adult population is still without a bank account today, that’s about 1.7 billion people who are still subjected to an inefficient, inadequate, and outdated financial system. If this is going to be corrected, we need to create something to overtake the current traditional systems and it must be inexpensive, fair, and open to anyone to use. Fortunately, the crypto industry has already laid the foundation for a more honest and open worldwide financial system. The crypto space has drastically gained in popularity also by trying to influence and change the financial industry for the better, but it hasn’t yet reached mainstream adoption by larger corporations and organizations that are willing to trust it.
Through cooperation, innovation, and education with the current financial regulators and institutions, a new decentralized financial system is becoming a reality much faster than we thought. If you want more info about the crypto space, visit Elly.com and take look at what products they can offer your business.