When paying online, I also choose to use crypto. I’ve found some great online stores that can be paid for with cryptography and I’m happy to support the whole project. Nonetheless, recently I reviewed Bithumb’s conversion rates and was a little shocked. The seller has applied a considerable Bitcoin premium. The payment company reported low costs, I found it strange.
I sought the root cause, digging down a little more. Not the merchant, but the crypto payment service used by the merchant, is responsible. I compared different providers, not just looking at the advertised rate, but going from end to end (purchase to settlement). The evidence I have obtained was surprising–here’s a table summarizing all this information that I found. It looks like my old article about crypto payment vendors and their advantages and disadvantages needs to be revised.
Although not crypto-currency payment service, it is interesting to see how profitably this payment business can be and how many people pay outrageous fees, even if they don’t. PayPal, Stripe, and Square are all cited in order to compare conventional and crypto companies. As an e-contractor, I often approach e-commerce products from two angles: from the point of view of the supplier and the customer. And I will present my observations in this essay with these two opinions in mind.
The landscape of the crypto payment company
You will look back at your own words some time ago. I was perhaps too optimistic when I published the last post about crypto-payment firms for traders. I wanted to offer crypto in our online store as a payment method and I wanted to find a supplier that could supply it. Once you decide to take some step, you start true deep research, and if you dig deep, even platinum is used to find rust particles. Nonetheless, I found it wasn’t gold but plain copper at all.
The future of the buyer
Let us look at the most popular / usually accepted crypto payments suppliers, together with some new items in this section and see how they are obtained from the end user’s point of view–since this is where the real value lies:
- Coinpayments are unrestricted and have no buyer protection.
- Coingate has very costly, unchecked and without the safety of the purchaser
- The real reason I purchased my Ledger hardware wallet with fiat currency is Bitpay. I don’t have a Bitpay compatible wallet and only a few are available to serve.
THE FUTURE is the only one incorporating full customer protection with fair market prices.
We have three question factors to deal with, in general. The purchasers
- Generally, they earn less USD than the real value for their cryptocurrencies for payment they want to use.
- they are fundamentally not safe and must bear the full risk
- Often have to deal with a terrible Design and/or have issues directly with usability. The unfair reality, though, is that many manufacturers tend to mask very high sellers ‘ market rates.
The end-user has high rates, much above the normal market, for the most crypto payment solutions. We benefit from this arbitration and often mask it under false pretenses from the consumers. Review the cryptocurrency price you pay for the most current market price for your own advantage.
… and the opinion of the merchant
We will soon be 2020 and still dependent on Bitcoin as the main avenue of crypto transfers, a legendary 12-year-old. Nonetheless, dealers who would like to offer the crypto payment option
…… pay unreasonable costs to do so
….. must still suffer from problems of volatility which make accountability a nightmare
….. dealing with most manufacturers ‘ absent laws
…. get used when you want to switch to fiat
And yeah, new competitors are trying to fill the payment-centered vacuum–the newest being Facebook LibraCoin itself. Is that the reply? No, far from it. Far from it. Whilst I realize this is yet another important step towards ensuring mainstream acceptance of cryptocurrency payments and place cryptocurrencies in the hands of many merchants and companies, it has limitations on centralization and governance. It is not a magic bullet or a substitute; it is just another stable coin in the market, which will require more rivals. Also, not the truth that most merchants are looking for the universal crypto payment solution. And I’m not even thinking about anonymity, data protection or safety for the consumer.
The Horizon Light
I have to confess that I have missed important results in my previous article about crypto payment gateways and identified a certain provider who discussed certain specific issues (or was about to do so by the date of the article’s publication). You can note that trust is the latest addition on the left, once you come back to the table with the details about all those payment providers. They will offer a great service in the area of Crypto payment solutions with support from their token. In the new store in Benfica, we carried out a check transaction and can conclude:
- Just crypto market rates for your purchasers (you have a higher USD premium than for other suppliers for your cryptocurrency)
- · Direct conversion of fiat with the possibility of uncertainty for the dealer
- Their solution is very simple (you do not have to wait for multiple confirmations like others with your wallet solution).
- • Commercials pay a fixed fee of 1 percent (including fiat conversion)
- The only company with absolute customer security can handle conflicts (like the Paypal).
- Under VQF oversight the payment service is regulated
To date, that seems to be the best solution, addressing all ecosystems, problems one by one, with their customers straightforward and transparent. In one of our smaller shops with a foreign client base, we will make a real attempt. Let’s see how it’s going to function! I’m very happy to try to comment in the future.