When we look at 2021 and moving forward, despite it's volatility, accepting cryptocurrency and using crypto payment gateways to facilitate these as a form of payment is clearly here to stay, with big companies like Microsoft and Lush accepting cryptocurrency as well as notably, Tesla stating once mining becomes greener they will accept bitcoin payments all points to more and more companies choosing to accept crypto payments alongside traditional fiat payments.
But what are the benefits for these companies choosing to accept crypto payments and which is the best crypto payment gateway to accept bitcoin?
Well to start with using cryptocurrency does reduce fraud. It's known that a typical organisation loses around 5% of it's revenue year on year to fraud, but by accepting cryptocurrency companies reduce their fraud risk as all parties in a transaction can track and approve the transaction, which helps create a digital paper trail that reduces the chance for malicious intent. Another benefit is that it helps reduce cost and complexity in international transactions. Because cryptocurrency is not tied to a specific location or country it reduces the cost of foreign exchange when buying or selling goods in different currencies but it also reduces the complexity in having to offer services in those currencies.
Finally because more and more people are beginning to use Bitcoin and other cryptocurrencies for transactions, more people are looking to use it in their everyday lives meaning by accepting bitcoin payments and other cryptocurrencies, companies can expand their customer base.
What are Cryptocurrency Payment Gateways and why should I work with one?
At a high level a Cryptocurrency Payment Gateways are very similar to traditional payment gateways in their mechanism, they're used to help facilitate either receiving or making payments. Where crypto payment processors or crypto payment gateways differ is they have a number of benefits that traditional payment gateways do not.
Firstly one of the biggest (if not the biggest) concern when people talk about accepting cryptocurrency as payment they cite is its volatility. Most crypto payment processors bypass this as they do not hold the payment in the cryptocurrency form unless the receiver says they want to, they otherwise convert it immediately to a chosen fiat currency allowing the receiver to benefit both from benefits that come from accepting crypto payments, such as much lower transaction fees but also from the benefits they gain from a fiat currency.
Who are some of the Crypto Payment Processors?
When we look at two of the biggest Cypto payment processors Hashbon and Bitpay. To help make things a little easier we've broken down some of the key features and differences between the two below.
The first thing worth talking about is which of the crypto payment processors supports more currencies. Today Bitpay supports 10 different coins whereas Hashbon supports over 30 different coins. It is worth putting some context to this comparison though, most cryptocurrency transactions are done in Bitcoin today and on top of this, supporting the top 10-15 cryptocurrencies allows businesses to experience real profit in accepting cryptocurrency. With that all said and done, given how rapidly the market is growing, using a provider who offers more coins not only today but is open to adding newer ones as they come online will only be of benefit to their customers, especially given household names institutions like JP Morgan are beginning to create their own currencies. This also benefits merchants as they won't need to pay and implement multiple payment providers to improve coin coverage.
The second feature that's worth mentioning is the integration and verification process for merchants. Hashbon has an easier and simpler verification and integration process making it more suitable for small to medium sized enterprises based in Europe when compared with Bitpay. Both companies do offer both an API integration for their services but Hashbon also offer the ability to accept cryptocurrency without integrating an API by sending out payment links via E-mail or messenger (WhatsApp, Telegram, Etc.) services helping serve businesses who wish to accept crypto payments but may not have the technical expertise to integrate an API.
When it comes to fees/ commissions both Hashbon and Bitpay charge the merchant for the service. Bitpay will charge a 1% fee on all transactions whilst Hashbon does not and conversely Hashbon will charge a 1% commission on all conversions whereas Bitpay doesn't charge anything on conversions. It is important to note that both companies charge a processing fee, where things differ though is Hashbon allows its merchants to choose whether this fee is picked up by the merchant themselves or they can pass this on to the buyer as part of the service provided by Hashbon. Bitpay also charge 1% fee for all deposits into a wallet whereas Hashbon does not charge any fees for depositing funds. Neither Bitpay or Hashbon charge for withdrawing funds.
"In the modern age companies really can't afford to not be accepting cryptocurrency as a form of payments. The typical reservations around volatility and acceptance really do not exist as much as they used to, especially if you use a payment gateway. Couple this with in the context of payment fraud being at an all time high, accepting cryptocurrency as a form of payment really is a no brainer. Finally the ease of integration and accessing these services makes it easier than ever before to accept this new, if not better, way of paying for goods and services." (Jack Crabtree)
It's definitely worth accepting cryptocurrency as a payment method to your business as it can be cheaper than traditional means, but also much more secure, reduces fraud to you and increases the differing payment methods your customers can use. These benefits are also compounded when coupled with a cryptocurrency payment gateway- this is especially so when your cryptocurrency payment gateway service can provide access to more coins, as this market begins to diversify away from Bitcoin and into other coins become increasingly, merchants who can limit the number of crypto payment processors whilst being able to maximize coverage will really reap the rewards of the wider cryptocurrency market.
When you consider that the financial conditions for the merchants are almost the same, really who is the best payment gateway to help you accept crypto payments comes down to how easy their verification and integration processes are and how many coins they support, which makes Hashbon the more suitable and attractive choice for small and medium businesses based in Europe.