Implementing Crypto Payments Into Business Systems

@britttheanalyst

My name is Britt and I like to analyse things.

Blockchain technology is one of the most popular trends among businesses, gamers, and technology enthusiasts. As blockchain technology gains popularity and new platforms arise, consumers and business owners must find a way to accept payments and donations on these new platforms.

Due to this trend, cryptocurrency is slowly becoming a currency of choice. The urge to transition to cryptocurrency increases as the economy shifts to accommodate the growth of blockchain technology in the modern digital and finance world.

So, some of the first questions business owners ask when tasked with deciding whether or not it is feasible to implement cryptocurrency payment solutions into their current business systems are: What is a crypto payment, and what is a cryptocurrency payment system?

Crypto Payment and Crypto payment System Explained

A crypto payment is any payment made using cryptocurrencies. Cryptocurrency payments require a payment gateway. A cryptocurrency payment system is a gateway that allows users to make payments for goods and services using cryptocurrencies.

Since this technology is fairly new, business owners are wary of the safety of cryptocurrency payment systems on the blockchain. Consumers can rest assured because blockchain technology is becoming an increasingly trustworthy option due to the use of keys and smart contracts in transactions.

This makes it tough to infiltrate by threat actors although no data or information is ever completely tamperproof. Blockchain and cryptocurrency payment solutions are just as secure as traditional payment system solutions.

Governments have also added restrictions which also adds a layer of security for consumers per their individual region.

Businesses then ask, what is the benefit of implementing crypto payment systems? One of the key benefits is that cryptocurrency payments bypass traditional banks, therefore, they don’t need traditional banking fees. Another favorable benefit is alleviating the middleman.

This gives businesses more financial freedom. Adopting cryptocurrency payment systems is also a great way to challenge competition and meet growing customer demand for payment method variety and ease of transactions when purchasing goods and services globally in digital markets.

Millions of users have now adopted cryptocurrency into their personal financial system as the economy shifts to adjust to the demands of a more digital world. Purchase powers increase with the influx of blockchain platforms, goods, and services.

Consumers now shop, order services, and watch movies all online, and many prefer paying for these goods and services in cryptocurrency. As the number of crypto enthusiasts grows, adopting these new solutions allows business owners the ability to keep this category of customers.

After deciding to implement cryptocurrency payments, business owners face a skill level gap and must hire blockchain application engineers or specialists to design and execute the new system.

This becomes a large con for many business owners, and they tend to avoid adopting new blockchain systems for this reason.

Because blockchain technology and cryptocurrency payment systems are new, integration is difficult and costly, and it often causes capacity overloads to current systems. Business owners often choose to forego making updates to current system designs.

However, there are many convenient, cost-effective ways to implement a cryptocurrency payment system into your business such as an API connection, a cryptocurrency wallet, or a cryptocurrency gateway. These solutions won’t cause major risks or changes to the current business impact.

How to Implement Crypto Payments into Business Systems using Crypto Wallets and Crypto Gateways

Here is a high-level how-to on Implementing Crypto Payments into Business Systems using Crypto Wallets and Crypto Gateways:

1. First, perform a series of risk assessments to determine the pros and cons of implementing crypto payments for your business. Determine which regulatory restrictions may impact your business and how utilizing cryptocurrency payments can benefit your business per these guidelines and laws.

   Use these results to conduct a vulnerability assessment on security and privacy risks and remediate any flaws in the current system that would cause a major risk.

2. Determine the specification of your design and which cryptocurrency payment solution or tool would be most beneficial to your project, business, or organization per risk assessment results. Finalize business requirements, interface needs, updates, and changes needed and which cryptocurrencies you will allow.

   There are hundreds of currencies to choose from like Bitcoin, Ripple, Cardano, Ether, Solana, etc. Businesses can choose to only facilitate cryptocurrency payments or disable the crypto payment option in select countries and only accept a fiat currency such as USD in those countries. Then, identify tools like crypto wallets and payment gateways.

3. Choose a software crypto wallet for accepting crypto payments. Allow customers to opt for crypto payment transactions to receive the funds. You also need a secure way to store cryptocurrencies. Integrate a crypto wallet into your app.

   Popular crypto wallets enable you to accept all of the leading cryptocurrencies, and some of them also support newer, less popular cryptographic tokens too. Several popular crypto exchanges provide cryptocurrency wallets.

   These wallets allow customers to buy crypto in exchange for fiat money like US dollars. Customers can trade and convert one cryptocurrency for another using these wallets. Here are some wallets to choose from:

   1. Coinbase Wallet - COINBASE Wallet is a self-custody wallet that allows customers to have complete control of their cryptocurrency. Coinbase Wallet uses private keys (that provide a representation of ownership of the cryptocurrency). Keys can be stored in your Wallet directly on a mobile device and not with a centralized exchange like Coinbase.com.

      Private keys can be stored and used to send, receive, and spend digital money. They can also be used to browse and use DeFi applications, etc.

   2. Exodus- EXODUS is a crypto wallet with multiple different types of options. Exodus allows you to secure, manage, and swap cryptocurrency on desktop, mobile, and hardware wallets. The web3 wallet allows users to connect to thousands of Web3 apps and dApps across multiple networks including Ethereum, Solana, etc. Exodus also works with the Trexor Hardware Wallet.

   3. MetaMask - METAMASK is a digital wallet that allows for managing, sending, and receiving Ethereum and ERC-20 tokens. Users can also add the Binance Smart Chain network manually on Metamask to store and exchange BEP-20 tokens. The MetaMask wallet connects Web 2.0 browsers like Google Chrome or Firefox to the Ethereum blockchain and acts as a browser extension.

      MetaMask allows users the ability to fully engage with Ethereum without having to download the complete blockchain.

4. An easy way to support crypto payment transactions on your website or app is to use a crypto payment gateway. There are many trustworthy and popular crypto payment gateways that provide high security.

   1. CoinGate – CoinGate is a payment gateway that offers cryptocurrency payment processing services for businesses. CoinGate offers permission-based account management, fiat payouts to the bank account and email billing features.

      CoinGate has cryptocurrency payments for multiple types of websites or physical stores, including payment buttons, web PoS applications, API integration, and official plugins, and can be used on some of the biggest e-commerce platforms available.

      CoinGate also provides a buying and selling platform for numerous crypto-assets through a single payment option allowing customers to choose from multiple purchasing methods like credit/debit cards, bank transfers, or use their mobile balance. Customers can also sell their coins for fiat.

   2. NOWPayments- NOWPayments offers a crypto payment gateway. NOWPayments offers plugins, widgets, and APIs.  NOWPayments.io allows many kinds of eCommerce and accepts cryptocurrency as a payment or donation globally.

      NowPayments has over 100 cryptos and fiat conversion options available. One benefit is that it is fully non-custodial, doesn’t hold any limits, and has the most competitive fees on the market. NowPayments can accept payments in crypto for businesses, crypto donations for projects, or conduct mass payouts.

      NOWPayments also offers customized, need-based decisions. To start, add your crypto wallet and create an API key and choose the form of integration depending on your needs.

      NOWPayments also has ChangeNOW, an effective instant cryptocurrency exchange service. Users don’t need to register, and the exchange will have no limits. Transactions can be quickly converted into more than 170 coins without customers having to pay any additional or hidden fees.

Post implementation, business owners and customers can begin to see the benefits of leveraging cryptocurrency and blockchain technology into their payment systems. These solutions can help eliminate issues found in traditional payment methods.

Businesses that faced constraints while using centralized payment systems can attest to the numerous benefits of implementing cryptocurrency payment systems.

As blockchain technology gains popularity, we can expect to continue to see a growth trend as businesses start adopting cryptocurrency payment systems to leverage it for streamlining the transaction processes, lowering transaction fees, increasing data security, and eliminating the issues arising from traditional centralized banking systems.

The Crypto Writing Contest is sponsored by NOWPayments. NOW Solutions is an ecosystem of enterprise solutions that allows businesses to integrate crypto and benefit from it. NOW Solutions includes ChangeNOW, NOWPayments, and many other solutions. ChangeNOW is an instant exchange (swap) platform that supports 800+ assets. NOWPayments is a non-custodial crypto payment gateway that lets you accept payments in 160+ cryptocurrencies, with auto coin conversion available. Accept crypto NOW!