Cryptocurrencies are booming in the fintech sector and marketplace. Around 8000+ cryptocurrencies are now in circulation around the world. Even though the crypto coins come with enormous features and functionalities, the users hesitate to spend them for purchasing due to their appreciating value in the marketplace. Some top brands have introduced the best cryptocurrency payment gateways in their point-of-sale, but it has still not gained traction among the community. Cryptocurrencies’ popularity and immense demand with limited supply make them highly valuable and add to price volatility. Adopting cryptocurrencies for our payment transactions are tedious, and the users are concerned about these four problems:
Many cryptocurrency communities have stepped forward to resolve the scalability issue to support transaction volumes and other minor bugs. Enhancing the transactions with security, features, and use-cases are already in progress. Hence, the scalability of transactions will not be a major issue when the cryptocurrencies hit us as mainstream payment options!
Let’s now dive into the real discussion on how to resolve the rest of the issues existing in crypto transactions!
A Cryptocurrency Payment Gateway Solution-Addressing the cryptocurrency transaction issues!
The volatility of cryptocurrencies is considered the most undesirable feature for transactions by consumers and merchants for utilities. Even though fiat currencies do undergo price volatility, as per the market demands and country’s economy, cryptocurrencies’ price volatility is noteworthy, and it’s very hard to predict!
When a merchant accepts cryptocurrency, he needs to rely on third-parties to swap these cryptocurrencies into acceptable fiat currencies in the geolocation. Even though the cryptocurrencies are appreciating in values, there is no guarantee that price would remain appreciating. Suddenly, if the price of cryptocurrencies falls, the merchants may be under complete loss, and hence, it’s advised to swap the cryptocurrencies instantaneously. This makes cryptocurrency payment gateways more significant for crypto payment adoption in the digital world!
However, the crypto community has established other options such as Stable coins & Stable tokens to overcome the price volatility of cryptocurrencies in the market place. The crypto community developed these coins to reduce and eliminate the market risks due to volatility. The stable coins can enhance the utility of decentralized cryptocurrency payment gateways among merchants to promote crypto payment transactions.
By introducing stable coins in the marketplace, merchants can escape from the game of price volatility. Merchants can accept the bitcoin or any other popular cryptocurrency from the consumer through a decentralized crypto payment gateway. It can be automatically swapped to stable coins, thereby avoiding volatility risks. Adopting a crypto payment gateway in the point-of-sale, merchants could avoid third-party intervention in exchanging currencies. The cryptocurrency payment gateway service provider offers the merchants options at intervals to swap the currencies. With these advancements in the crypto payment gateways, the merchants can attract the worldwide consumer base, reduce transaction costs and exchange margins. This, in turn, increases the profit figures of the merchant by decreasing the transaction charges.
While rendering a solution to price volatility, the cryptocurrencies appreciating value is due to the limited supply of assets. As the demand for crypto assets increases, it’s obvious that the price value of cryptocurrencies increase. However, this appreciating value can be controlled with stable coins to a greater extent. As there will be no price fluctuations in stable coins, the liquidity of these cryptocurrencies increases in the market space; thereby, ensuring the circulation of crypto assets with merchants and consumer base. Even though the merchants and consumers think of storing the stable coins as an investment option, the values do not fluctuate, and hence its mandate that stable coins must be utilized for transactions.
Transaction fees for crypto swapping are higher in exchanges as they don’t happen at regular periods. When the merchants, consumers, and other stakeholders in the fintech sector adopt stable coins, the need for crypto swapping would be less, and thereby, exchanges would incur fewer transaction fees.
Introducing stable cryptocurrencies in the business would ensure profit figures and increase the utility of cryptocurrencies. With the introduction of stable coins and cryptocurrency payment gateway in the point-of-sale, the merchants, consumers, and marketplace would be enhanced with assets’ liquidity. Remember, we’re heading towards the true era of digital assets!