Bitcoin mania drives $2T economy, payment processors

The rise of bitcoin in valuation, popularity, and as an investment option has cleared most of its pre-attached money-laundering stigma. Present cryptocurrency valuations exceed USD 2 trillion, and Bitcoin occupies a dominant position in the market shares. With increasing worldwide adoption and a unanimous call for regulation, the cryptocurrency market looks stronger than ever- leveraging the best out of the current fallacies of fiat currency. It might be hard to believe, but the banking and finance sector is the biggest benefactor of the global crypto craze. One of the primary uses includes utilizing crypto for cross-border payment transfers and settlements using crypto payment processor technology.

Global Crypto Standing at Q4, 2021

The Finance sector is responsible for 60% of blockchain’s global market valuation. There has been a global expenditure of $6.6 billion on blockchain solutions in 2021 alone. Forecasts suggest the blockchain industry is expected to scale USD 39.7 billion by 2025, at a CAGR of 67.3%.

Bitcoin, the world’s first cryptocurrency, operates on the blockchain network. Throughout the entire year, the network has witnessed between 200,000 and 300,000 daily transactions on average, reaching a high of 401744 transactions in January 2021. The present transaction count is 297,402. The network operates on PoW, which though highly secure and decentralized, is time-consuming by crypto standards. 

The second most popular cryptocurrency Ether thus plans to shift from PoW to PoS which is slated to give a significant boost to operational speed. Daily transactions stand at 1.396 million as of today. It should be noted that Bitcoin has a much higher valuation than Ether.

Crypto Payment Processor

In operation, a crypto payment processor permits a merchant to accept cryptocurrencies as a transaction medium. Modern payment processors encourage transactions in popular cryptocurrencies like BTC, ETH, Ripple, Litecoin, and more. 

Advantages of a Crypto Payment Processor

A crypto payment processor has several advantages over traditional payment transfer protocols. To start things off, the underlying decentralized blockchain technology does not require a 3rd party intermediary.

Blockchain implementation significantly increases transaction speed while reducing costs. Crypto-payment transactions are much faster than conventional credit/debit card transactions. Acknowledging the superior speed of crypto payment processors, global payment processing giants like MasterCard will soon start allowing its merchants to trade in Bitcoins.

There are additional advantages of a digital asset payment processor as well. A transaction through the blockchain network is final and eliminates the chance of credit card fraud.  The network is highly secure and is immune to most cyberattacks or hacking attempts, including DDoS, ransomware, or malware.

Data sharing through the decentralized ledger all across the network prevents a loss of transaction records. With an increasing network of members, the technology will fare even better.

Also Read: PaybitoPro’s White Label Payment Gateway Backed by DeFi Ensures Seamless Crypto Payments

How is a Crypto Payment Processor Used?

A significant portion of major banks have already transitioned and adopted blockchain technology for international payment processing. The bitcoin blockchain network is the most popular option for financial transactions. Several businesses have already started accepting payments in bitcoins. 

On the other hand, traditional payment processing services utilize Bitcoin’s distributed ledger to send fiat currency payments across the border. The ledger allows them to bypass the existing banking framework and make faster(as well as cheaper) transfers.

The service provider converts the sender’s local fiat denominations into Bitcoin. Thereafter, the next conversion switches Bitcoin to the recipient’s preferred currency and transfers it to the bank account. Even for international transfers,  process completion takes a maximum of 1 to 3 days. 

Kenya and other African nations have been using such crypto payment processing services to skip the challenges posed by inefficient local banking infrastructure. This has been pivotal in improving their economy. 

Also Read: PayBitoPro to Offer DeFi Payment Solutions to a USA-Based Organization

White Label Crypto Payment Processor

Businesses or enterprises planning to implement a crypto payment processor may approach reliable blockchain developers. Therefore, the required option is a white-label crypto payment processor, customized to their requirements.

US-based global blockchain specialists Hashcash Consultants offer their flagship White Label Crypto Payment Processor that can be used to transfer both Bitcoins and other popular cryptocurrencies. Thereafter, the company runs Billbitcoins, a crypto payment processor that transfers currency worldwide at the lowest transaction rates.

Developing a crypto payment processor from scratch requires technical expertise, resources, patience, and experience. One must persevere through trial and error. Moreover, it is sensible to diverge resources in other business aspects and leave platform development to professionals with experience. HashCash-developed crypto solutions have been successful across multiple continents achieving a high degree of acclaim and recognition.

Conclusion

With a major section of the worldwide economy shifting towards blockchain implementation and crypto adoption, a crypto payment processor is a great option for businesses looking to venture into the cryptocurrency market. White Label Crypto Payment Processor is the ideal solution as it allows businesses to eliminate initial setup and software development hassles and focus on other areas.