Surely everyone has heard of the term cryptocurrencies (crypto) and in 2021 it was an explosion of this market with many applications of crypto being discovered such as DeFi, NFT, GameFi, … So as a currency, is it really suitable to be a payment method? Let’s find out through the article below!
Financial institutions own and oversee a variety of modern money exchange methods, including paper checks, credit/debit cards, Automated Clearing House (ACH) payments, bank transfers, and digital cash. Nonetheless, the circulation of money continues to shift in the ever-changing world of trade. The last decade witnessed the introduction of Bitcoin, a new paradigm‑shifting innovation where the users control their own money without needing a trusted third party.
However due to high confirmation waiting times, highly disproportional transaction fees, and low through put, the establishment of payment channel networks (PCN) where among many participants and channels the participants pay through others by using them as relays, essentially forming a connected network. A perfect example of PCNs is Lightning Network, and after that is a lot of network that solve that problem such as Ethereum, Binance Smart Chain, Solana, …
Let’s take a look of most famous blockchain during this time:
Solana blockchain with 50,000 transaction per second with the trading fee almost 0 can be considered as the appropriate blockchain for payment issue.
A cryptocurrency payment gateway, like payment processors, gateways, and acquiring bank credit cards, is a payment processor for digital currencies. Cryptocurrency gateways allow you to accept digital payments and quickly get fiat currency in return.
These organizations erase any doubts or qualms you may have about cryptocurrencies, allowing you to offer more payment options to your customers.
It’s vital to understand that payment gateways for digital currencies aren’t required. It’s completely fine to accept bitcoin payments using your personal wallet. Nevertheless, gateways relieve you of the added labor of converting cryptocurrency and storing a wallet.
Hopefully with the development of crypto payment gateway will help more people easily approach to crypto world
Check out this trustworthy as an example:
Despite being a believer in crypto, it is currently very difficult for crypto to become a payment instrument that can replace traditional methods for a few reasons:
- Popularity of crypto is not high
- Remarkably price volatility
- Not any specific rules/laws related to crypto
- Not many projects focus on this feature yet
However, in the future, nothing can be said. Take a look at what Bitcoin in particular or crypto in general has gone through, from being likened to a bubble by everyone to becoming an important part of the financial market and now even diving into politics when El Salvador, the first country to accept Bitcoin as a payment method.