The time when cryptocurrencies were believed to be useless to pay for purchases has passed. Now, when cryptos are at a greater boom and acceptance, there are various cryptocurrency payment systems.
We are talking about payment links that you can use in your business or charge your freelance services. Simple systems that allow the exchange of cryptocurrencies. Some also facilitate the conversion of these to fiat money.
Today we are going to talk about these payment systems. We will tell you what they are and how to use them. Keep reading and discover everything you need to know about cryptocurrency payment systems.
Cryptocurrency payment systems
In principle, cryptocurrencies had a certain character of technological curiosity and an alternative spirit. Little by little they grew, especially as investment instruments. But today, they are already assumed as real alternatives to the currencies of current use.
Hence, their adoption has generated new needs around them. The main one was the requirement that cryptocurrencies could be used as a form of payment.
What are remote payment systems in cryptocurrencies?
We could define remote payment systems in cryptocurrencies as electronic ecosystems through which payments for products and services can be made with prices reflected in cryptocurrencies.
These payment gateways have a simple and intuitive interface that facilitates transactions. The objective is that those who are not initiated in the world of cryptocurrencies and do not usually dedicate themselves to trading can use crypto as an alternative currency without problems.
Remote payment systems in cryptocurrencies responded to the need to remove crypto from a specialized niche and bring it to end-users. The goal is that people could make purchases and sales in crypto assets, with the same ease as with fiat currencies.
How and why did cryptocurrency payment systems arise?
Until recently, the main criticism made of cryptos pointed in that direction. The slowness of transactions and the need to have certain prior knowledge to be able to carry them out were questioned.
These obstacles prevented cryptocurrencies from being used as a form of payment for products or services. After all, there are usually three conditions for a business transaction: ease, speed, and security.
On the subject of security, cryptocurrencies never raised doubts, it was known that the Blockchain system-generated sufficient trust in any transaction. But as for the other two aspects, the question was confusing.
Cryptocurrency transactions were not fast and for many, they were not easy to carry out either. This limitation fueled initial criticism and skepticism around cryptocurrencies becoming massive and replacing fiat money.
However, with time, and as the capitalization in cryptocurrencies grew, in particular Bitcoin, remote payment systems began to appear.
In English the acronym PoS began to become popular, corresponding to the words Point of Sales, or point of sale in Spanish. It was used to define the different cryptocurrency payment solutions that began to emerge. Although the term originally came from the traditional currency outlets.
These mechanisms, in principle, were similar to common currency payment systems. That is, they sought to resemble Paypal, Payoneer, Neteller or Uphold, and other Fintech companies. But they soon began to develop their own identity.
Fintech and its impact on the economic world
This emergence of crypto payment systems came hand in hand with the growth of so-called Fintech.
Fintech is a word composed of the words Financial Technology, which in Spanish translates as “Financial Technology”. Its use refers to companies that have combined technology with finance.
Many times they have been companies that operate in parallel, and even intend to replace the bank. Although they also began to venture into sectors such as insurance companies, data companies, trading platforms, stock trading tools, and even e-commerce.
In the beginning, Fintech companies focused on making fiat currency transactions electronic. But with the emergence of cryptocurrencies, Fintech companies also began to emerge seeking financial solutions in crypto assets.
This evolutionary process led to the appearance of payment systems in cryptocurrencies, Fintech platforms, almost always in the Startup model, which uses digital money.
Also sustained by Big Data, which allows them to process a lot of information and many transactions, Fintech companies have developed payment links in cryptocurrencies, which ended up underpinning their popularity and massive adoption.
Today it is very easy to buy and sell cryptocurrencies. It is also easy to implement payment systems in your business to receive payments for your sales or for the services you offer. All thanks to cryptocurrency payment systems that are simple to use and implement.
The 5 best cryptocurrency payment systems
As we are sure that you will want to use these instruments, we are going to tell you below which are the 5 best cryptocurrency payment systems.
This Blockchain payment processor allows you to use more than 50 different cryptocurrencies. What’s cool is that you can use it in different applications, including:
- A point of the sale web app (that is, a payment link);
- an app for Android,
- an app for iOS.
CoinGate is currently one of the most popular cryptocurrency payment processors in the world. The main reason is the huge variety of cryptos that can be used on its platform.
Bitcoin, Litecoin, and Ethereum are among the most used in CoinGate to buy and sell products and services. However, its variety makes it widely used by those who handle other cryptos not so well known.
At the Hispanic American level, in Colombia more specifically, there is XPay.
A startup developer of a payment gateway in crypto assets. It offers a web payment link and an API. The API is easily integrated, while the payment link allows access to a virtual point of sale where the transaction is made.
XPay has the advantage of being local, which contributes to good customer service, who can receive support if they need it. Hence, in some countries, its use is increasing, with already hundreds of associated commercial premises.
Another of its advantages is that it works as a safeguard for crypto assets. Thus, businesses can save their cryptocurrencies or change them to fiat currency if they wish. This duality helps XPay to be an ally of commercial transactions.
On the downside, XPay’s only limitation is that its payment processor only supports three cryptocurrencies (Bitcoin, Bitcoin Cash, and Dash) and one stable coin (DAI). However, it is known that they are in the process of expanding their offering.
It is a payment processing service that allows merchants to operate with different cryptos. It is one of the oldest PoS since it was founded in 2013 when cryptocurrency payment systems were beginning to emerge.
It is not an app, but a plugin, adaptable to the web. Its implementation gives businesses a payment gateway that processes: Bitcoin, Bitcoin Cash, Dash, Litecoin, Ethereum, and EOS, among others.
Its transaction fees are a little lower than average, which makes it very attractive especially for businesses that are starting and want to make payments in cryptocurrencies.
It started as a competition to CoinGate, but it already has its own market.
One of its main guarantees is that it could be integrated, through an API and a Token, with the popular online store platform Shopify. Hence its popularity and the acquisition of its own market.
Currently, this remote payment system continues to work, being one of the most attractive options on the market.
And finally, we have BitPay, a remote cryptocurrency payment processor, specializing in SoftTouchPoS (touch interface point of sale) systems.
This technology is widely used for restaurants, coffee shops, bookstores, and grocery markets, as transactions are fast. Its only limitation is that it only operates with Bitcoin, Bitcoin Cash, and fiat currency.
The API integrates with almost any traditional POS. Their commissions are just 1% per transaction. In addition, you can integrate it with your website and, like CoinBase, with e-commerce platforms such as Shopify and WooCommerce.
The payment systems criptomonedas emerged in response to the need for tools to buy and sell products or services. As these consolidate, we will see more and more large companies use these paid links as part of their revenue structure.
Cryptocurrency payment gateways combine the security of the Blockchain with the ease of fiat currencies. This merger creates a perfect system for switching to digital currencies.
It is time for you to start making purchases and sales in cryptocurrencies. It has never been so easy to do it!