Collaboration with fintech can be an essential tool for banks navigating the new digital landscape. However, the sheer number of fintech companies entering the cash and trade space can make selecting a partner and determining which innovation could add real value difficult.
Consumers are becoming more at ease with purchasing and selling digital assets. In recent years, the cryptocurrency market has seen the emergence of numerous new trading/ exchange platforms. Users can accept crypto payments in exchange for fiat currency through cryptocurrency exchanges.
Crypto Exchanges From Powering Retail Transactions To Business Transactions
There are nearly 380 crypto exchanges worldwide, and their traditional roles of converting crypto and buying and selling cryptocurrencies are evolving. Cryptocurrency exchanges profit from each completed transaction, which is one of the main reasons they are actively promoting crypto adoption.
Crypto can provide up to 250 currencies to more than 10 million customers, as well as spot trading, futures, and advanced orders. Furthermore, it has competitive/low trading fees and supports an ecosystem of cryptocurrency products. Trading services, cryptocurrency credit cards, a decentralised exchange, a standalone crypto wallet, and an NFT marketplace are also available through Crypto.
Commercial transactions are the next frontier for cryptocurrency exchanges. Merchants are increasingly accepting cryptocurrencies, and businesses, particularly e-commerce/ online payments, are introducing crypto payment gateways to their payment methods.
How The Payments Sector Benefits From Crypto Exchanges
Since cryptocurrency is decentralised, it can be transferred directly to the Peer to Peer (P2P) format. Nonetheless, over half of the bitcoin trades that took place in the last two years were through an exchange.
Here are some of the reasons why businesses are embracing cryptocurrency payment gateways along with fiat currency:
- Crypto payment gateways remove the anonymity of who you’re interacting with while preserving the customer’s preference.
- Crypto payment gateways provide assistance in resolving payment issues.
- Payments can be made from anywhere in the world and in any cryptocurrency that the provider accepts.
- Crypto payment gateways expand the customer base by providing additional payment options.
- Funds are received in the provider’s account and transferred to the merchant/business.
- Merchants are not required to understand cryptocurrency.
- Converts cryptocurrency to fiat currency instantly.
- Cross-border transactions and payments are cheaper and faster.
- By paying the market rate for the tokens at the time of the transaction, crypto reduces volatility risk.
How Traditional Global Payments Companies Can Help Crypto Companies Grow?
Collaborations with payment technology companies enable crypto exchanges to benefit from strictly enforced KYC/AML, multi-language assistance, a dedicated board for transaction processing and exception handling, a powerful matching engine, and mobile-friendly features. The Payments sector contributes to the global expansion of crypto companies that collaborate with global payment solutions for crypto businesses in real-time and near-real-time KYC.
Payment gateways for cryptocurrencies act as payment intermediaries between merchants and customers. They are not needed for digital currency transactions, but they can help to alleviate worry, confusion, and misinformation about a decentralised and unregulated source of value.
With cryptocurrencies on the verge of becoming a legal tender, the demand for crypto exchanges and payment gateways will only increase. Crypto users are now looking into lending, borrowing, and NFT art auctions. The enormous popularity of cryptocurrency is opening up new opportunities for businesses, governments, and consumers. Partnerships between crypto exchanges and payment companies also aid in the introduction of fiat currency into the crypto ecosystem.