Today, it is more critical than ever for e-commerce businesses to provide clients with services that are based on advanced technologies. Though the number of retail clients has significantly grown, the industry itself has become so highly competitive. Therefore, to hold a market share and differentiate themselves, businesses need to keep pace and implement modern technologies. In particular, one of the key priorities for any online company is to offer clients the many payment options they want to use. Not doing so could deter clients.
Due to the rise in popularity of cryptocurrencies, offering customers an option to pay with these digital assets gives the business an immediate competitive advantage. And this option can be achieved in two ways: by configuring an open-source solution “for free” or by installing a ready-made product by a crypto processing provider, but for a price. But consider, how ergonomic will an open-source solution be? Would you manage to save money in the end?
The benefits of accepting cryptocurrencies
What value could accepting cryptocurrencies alongside other payments means bring to your business? First of all, you will attract new clients because for now, only a few companies offer this option. Consequently, your clients will recommend your company to their friends through word-of-mouth, and your business will grow for free, thanks to viral marketing. Moreover, apart from gaining a reputation of being a state-of-art company, you will be able to offer clients more favorable terms of payments. Cryptocurrencies are known for low commissions and the fast speed of executing transactions, regardless of factors such as physical distances or payment sum. Even if your client transfers a considerable amount, the commission will remain low.
Another significant benefit is that payments in cryptocurrencies are non-refundable as transactions on blockchain networks are irreversible. In traditional systems, the refund option is often needed for duplicate payments or fraud. In cryptocurrencies, duplicate payments are eliminated. In fact, if this should happen, it would mean that the whole cryptocurrency network had been compromised. If the transaction was executed by a fraudster, the reason for it is the person’s data leakage due to an easy password, stolen private key, and compromised email or smartphone. In any of these cases, the e-commerce business that has received a payment bears no responsibility. Ensuring the security of cryptocurrency funds is the sole responsibility and primary duty of the funds’ holder.
Payment gateway: how to choose?
Crypto payment gateway should meet several requirements. First of all, the technical solution should be secure, user-friendly, execute transactions at a maximum speed, and contain anti-fraud mechanisms. Moreover, the range of accepted fiat currencies is another important factor, as well as whether you will be able to integrate the solution easily onto your platform.
Crypto payment gateways function in similar ways to traditional payment gateways. It authorizes and executes payments at online and offline points of sales. The gateway utilizes security protocols and encrypts data to secure transfers and protect customers’ data. Furthermore, it transmits data from webpages, applications, and mobile devices to payment systems and banks, assuming responsibility for the data’s safety.
As mentioned above, a payment gateway can be integrated using two main ways: by using a ready-made product from a crypto processing provider of your choice or by creating your solution from scratch or on the base of the open-source solutions. The latter might not be a very rational choice as it requires serious investments that in many cases bring no return. Let’s discuss two other options.
Create or purchase: a million-dollar question
Most of the entrepreneurs do not have a lot of money to burn and aspire to save costs as much as possible. This holds true for online businesses where upfront investments and the entry barrier are usually relatively lower than in offline businesses. Even a student can start an online business with enough enthusiasm and receive help from an angel investor within their friends and family circle. Therefore, business founders often opt for implementing payment gateways with open-source protocols. The choice seems obvious – these solutions are for free!
Yet, the seemingly free solution based on an open-source protocol, in reality, is not as beneficial for start-up founders as it appears initially, especially compared to quality solutions with all necessary services integrated. In fact, for fully-functional integration, it is not enough to install an open-source solution. Not to mention, this type of solution’s integration and further configuration are significantly more complicated than a ready-to-go solution, especially if it is a white label solution fully adjusted to clients’ needs without any external branding involved.
By installing an open-source payment solution, you will lose lots of time on setting it up. You will most probably end up with unsatisfying results as no one owes you anything and there is no support team to answer your complaints. With a free code, you will be happy that at least something is working. On the other hand, by choosing a commercial ready-to-go solution, you will receive fully functional software all at once. The provider will assist at the installment phase that will take significantly less time, after which you will be ready to launch sales with no time wasted.
Hidden costs of installing open-source payment solutions
While open-source payment processing solutions are marketed as free, it is not entirely true. The basic version might not include crucial functions for certain countries, which are necessary for seamless operations. Often, community members contribute to open-source projects with valuable extensions that might be necessary for you, but they are not for free, and their cost could be high.
Even with equal cost, investing in the solution from a well-established platform with a brand and history of successful payment processing, ready to assist you at all stages, is a better suited long-term solution for your business needs. On the other hand, an open-source solution extension is an investment into a newly developed platform to use at your own risk and peril.
Key components of any payment solution are compliance and anti-fraud. They ensure safety – the most important feature that your clients value. Fraud detection mechanisms are primarily for the benefit of a seller. If the anti-fraud system is weak, the payment gateway becomes vulnerable to fraudsters that could have fatal consequences for a business.
Anti-fraud and compliance are complicated and expensive processes that are not included in the free open-source solutions. In this case, a business owner will have to find a third-party company for these services, which isn’t cheap. However, these components are included in the ready-made commercial offerings. The fully-functioning compliance setup will not allow you to receive cryptocurrencies that have been mixed or used in the darknet. Though, this problem is yet not critical; one could imagine that in the future, it will become much more relevant.
Crypto processing by CoinsPaid
The payment gateway Cryptoprocessing.com by Coinspaid executes transactions with more than 30 cryptocurrencies regardless of where a seller or buyer is. The crypto processing service automatically converts cryptocurrency to fiat, and the seller receives payments for goods and services directly to their bank account in the currency of their choice. Cryptoprocessing.com is an optimum solution for any online business, including such industries as iGaming, gambling, and forex, where instant deposits and a huge variety of accepted currencies are of critical importance.
CoinsPaid offers both fixed and flexible fee structures that are completely transparent without any hidden commissions. They’re fully adjusted to the client’s business, turnover, and industry specifics. Besides the crypto processing service itself, the CoinsPaid ecosystem includes other instruments for crypto holders, like an exchange and a free wallet that supports over 30 cryptocurrencies and 20 fiat currencies. The transactions within the CoinsPaid platform are free from a commission. The CoinsPaid wallet security was confirmed by the leaders in cybersecurity “Kaspersky Lab” and the independent team of white hackers 10Guards.
As of today, CoinsPaid processes around 3% of all transactions in bitcoin. The Cryptoprocessing.com service is the first among providers to support crypto transactions in the iGaming industry. In 2020, the service executed $1 billion worth in transactions, including $4.5 million in bitcoin. In 2021, the number of CoinsPaid’s business partners exceeded 300 and is constantly growing. In total, there are more than 3 million registered users on the platform. CoinsPaid has over six worth of experience in the crypto market.
White label solution by CoinsPaid
The white label concept is in high demand in the field of electronic payments in general and payment gateways in particular. The white label payment gateway solution is a product that you offer your clients under your brand without its development. Its advantage is that you do not have to develop a payment gateway from scratch as you receive a ready-to-go solution tailored for your business and specific to your products’ configurations and nuances. The solution is marketed under your branding, logo, and commercial name. You can even install the payment gateways on your clients’ platforms.
You do not need to worry about payments security, integration with payment systems and banks, certification, and gateway maintenance. It is all managed by the provider. That is why choosing the right provider is a key decision that will affect your reputation among clients or competitors. Flexibility and reliability are fundamental requirements for any white label solution provider. Its purchase is somewhat similar to the development on the base of the open-source solution where you adjust the product to your needs. Yet, surprisingly, open-source solutions often become more expensive with all the necessary upgrades and extensions.
White label by CoinsPaid is an optimum product for those who want their own payment gateway. It is the financial opportunity to become a payment gateway or a cryptocurrency exchange service. The CoinsPaid team holds a solid success track record in ensuring the quality of the solution, including compliance and anti-fraud checks, compatibility with various platforms, and other key factors.
Summary
Whether you choose to purchase a ready-to-go solution by payment processing services or to create your own payment gateway with an open-source solution, integrating the crypto-fiat payment into your platform will be beneficial for your business. Webpages with integrated payment systems are popular among clients. But, to enhance customer confidence, it is necessary to choose a solution carefully as it can influence the company’s reputation.
Image by 3D Animation Production Company from Pixabay