What should the payment system be like in the era of cryptocurrencies?

By derwin25 | Worldinfo | 31 Aug 2019


We are on the verge of the fourth industrial revolution that will completely change our lifestyle. This new era in the development of humanity is described by blurring the boundaries between the physical and digital worlds: it is already evident in the concepts of artificial intelligence, Internet of things, virtual reality, Blockchain and cryptocurrencies.

According to the Statista analytical service, around 40 million Bitcoin wallets were registered in the world at the end of June 2019. More and more people are interested in the opportunity to buy or sell goods and services for digital money. The Cambridge Business School specialists described the use of cryptocurrencies as a global phenomenon, because people from all over the world were involved.

The ability to accept payments in cryptocurrencies becomes a significant competitive advantage for companies: customer loyalty is increased, international payments are simplified, bank commission costs are reduced and settlement speed increases.

What rules dictates global digitization?

Buying cryptocurrency products or services is getting easier: more and more online stores, gaming platforms, streaming services, etc. They accept digital money. Users like simplicity, low rates, high speed, transparency and payment security.

From the point of view of the suppliers, the cryptocurrency payment process is as follows: the payment system automatically converts the fiat currency into digital, which is then exchanged for a product or service, and then the cryptocurrency asset is Turn into fiat again.

With the development of the industry, the basic options are complemented by new features. Modern cryptocurrency payment systems (CoinsPaid, BitPay, Cryptopay) are ready-to-use multifunctional services that support digital and fiat currencies, the ability to convert cryptocurrencies into fiat, instant transaction execution, debit card linking and your own service. custody.

Modernized payment processing and acceptance services literally erase the boundaries between digital money and fiat money, offering entrepreneurs and consumers ample opportunities for financial cooperation.

Users can open a single multiple currency account and pay for the goods in any of the supported currencies. At the same time, suppliers can convert the money received to any convenient cryptographic or fiat currency and subsequently withdraw money in various ways available at the terminal: to a wallet, bank account or cryptocurrency card.

For example, CoinsPaid supports Bitcoin and more than 50 altcoins, and withdrawals in cryptocurrencies or euros are available to providers. Users will also soon be able to buy digital coins with plastic and virtual cards.

Currency Conversion

While cryptocurrency enthusiasts affirm the superiority of digital money over fiat, their opponents defend the inviolability of fiduciary settlements. Popular payment services successfully use the advantages of both systems to ensure the security and high speed of services.

For example, CoinsPaid combines a functional cryptocurrency processor for businesses and a convenient cryptocurrency wallet for private users. Entrepreneurs can deposit and withdraw fiat money to bank accounts, and when the personal wallet is represented, any customer can issue a brand debit card and open a dedicated IBAN.
The service regularly expands the set of cryptocurrencies available and ensures high speed of payment transactions, achieved through the optimization of settlement processes. The company cooperates with leading providers of banking and liquidity services.

He also has impressive experience and knowledge in the payment market, which allows him to build an absolutely transparent financial infrastructure with ample opportunities for individuals and legal entities.

Custody services

As cryptocurrencies spread, the problems of their secure retention are increasingly relevant. Custody services that involve safe custody of funds by accredited organizations have been a generally accepted standard in the fiduciary market since the 1970s.

This trend is increasingly used in the cryptocurrency market, and is a prerequisite for processing digital assets for large investors.

The main cryptocurrency exchanges (Binance, Bitfinex and Gemini) launched their own custody services in early 2018, based on a combination of several hot and cold fund storage methods.

However, most of the custodians in the market provide these services as part of a wide range of investment services for institutional clients. BitGo Trust and one of Xapo's oldest Bitcoin wallets provide such services to individuals.

The CoinsPaid payment service will also launch its own custody service. The company stores all customer funds in cold wallets now and will invite external auditors for an annual security and asset protection audit soon.

Issuance of debit cards

Cryptocurrency debit cards greatly simplify the use of digital money in everyday life. This convenient financial tool allows liquidations in offline stores and cash withdrawals at ATMs. Users who prefer to store most of their funds in cryptocurrencies can use them at any time by converting cryptocurrencies to fiat quickly and profitably.

The most popular cryptocurrency cards today are the products of the payment services Cryptopay, Wirex and BitPay.

Instant Payments

Cryptocurrency payments are faster, cheaper and simpler than fiduciary transactions. They allow you to transfer money from one point in the world to another in seconds.

Delays in cryptocurrency operations can only be due to network congestion or slow operation of the conversion system. Developers who regularly introduce updates that increase the scalability of digital networks solve the first problem. The second depends directly on the capabilities of the payment operator.

Modern cryptocurrency payment systems provide instant execution of transactions. For example, BitPay converts cryptocurrency into fiat currency in a few seconds, and CoinsPaid instantly credits deposits, confirming the transaction before it enters the Blockchain mempool.

Cryptocurrencies are spreading rapidly all over the world. They complement fiat money and expand the capabilities of users and erase borders between countries. The new generation payment systems have implemented this concept of interaction between the two financial systems, demonstrating their efficiency in modern conditions.

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