Understanding Fiat to Cryptocurrency Gateways
Sep 02 2021Cryptocurrency is becoming increasingly popular, and is now a viable source of payment for many businesses. This means that finding a solution that allows for payments in fiat currencies that is accepted as cryptocurrency has become an important part of merchants’ payment processing.
Finding a fiat to crypto payment gateway that is reliable as well as cost-effective is an important consideration for businesses looiking to accept and receive digital asset transactions from their customers.
What is a fiat to crypto gateway?
A fiat to crypto payment gateway opens the doors for merchants to be paid in increasingly valuable crypto assets such as Bitcoin and Litecoin, even if the customer pays for ther goods or services in fiat currency. It enables a business to accept fiat currency as payment but allows it to withdraw the amount in their chosen cryptocurrency.
With more and more companies interested in diversifying their assets by investing in crypto, a fiat to crypto gateway offers a quick and easy way to do this. An e-wallet service like STICPAY enables merchants to integrate this kind ofpayment gateway payment gateway directly into their payment platforms, and crypto withdrawals are only subject to small fees.
Why should businesses implement a fiat to crypto payment gateway?
A fiat to crypto payment gateway is an important step for your business to modernise its methods of payment. Giving customers the option to pay in fiat or crypto would be a welcome addition for many, especially since the crypto market is growing so rapidly. The cryptocurrency market is expected to grow to USD 2.2 billion by 2026. This shows that the crypto market is only going to increase in popularity, meaning that merchants need to be able to accept crypto as a viable payment method to avoid missing out on sales. What’s more, implementing a fiat to crypto payment gateway will make the process of building up a business’ crypto portfolio an easy one. As well as being able to attract more sales from crypto enthusiasts, using crypto as payment provides a multitude of benefits for businesses. We’ve outlined a few of these below. Crypto transactions are processed on weekends and holidays when banks are traditionally closed due to the continuous operation of blockchain networks. Cryptocurrencies have lower transaction costs for both businesses and consumers, as no middlemen are involved in the process. For the same reason, digital assets arrive faster (anywhere between a few seconds and an hour) to a recipient's wallet. Crypto payments are more secure than traditional solutions. In the blockchain networks digital assets use, data is stored on thousands of computers instead of a central server, and every transaction is encrypted via public-key cryptography. Crypto payments can't be reversed, meaning no risk of chargebacks and related fraud. Once a digital asset transaction is confirmed, the network considers it as final. Crypto is an excellent choice for merchants with an international user base. Unlike bank transfers, cryptocurrency networks don't differentiate between local and overseas transactions. As a result, you don't have to pay an extra fee or wait longer to receive or send cross-border digital asset transfers. Digital assets offer high-risk merchants a way to accept payments for products and services that require discretion between the business and the consumer. Depending on your industry and whether it’s considered high-risk, the discreet nature of crypto transactions can be useful. Fiat to crypto gateways add a level of convenience to the payment process by automatically exchanging the order value from fiat to crypto. Furthermore, a fiat to crypto payment gateway offers merchants a user-friendly process, where they receive all the details from the service provider to initiate the transaction. As well as providing an easy transaction experience, a payment gateway offers a secure way to make payments directly on the merchant’s platform. Additionally, fiat to crypto payment gateway solutions provide reporting features, so there is no need for merchants to track individual crypto transactions and link them to customer orders.