Today, more and more businesses start implementing crypto processing into their payment systems. Processing implies accepting, accessing, verifying, and transmitting transactions. The payment processing activity is possible due to the work of special systems — processors. The first processor that allows users to send and accept crypto payments was created in 2011.
The main problems of digital currency processing:
- Volatility. Due to the high crypto volatility, it is almost impossible to sell and buy digital currency at the same price. By accepting payment in digital assets, the seller risks receiving a smaller amount than they intended. The buyer is unlikely to willingly part with the cryptocurrency, which can noticeably increase in price in a couple of days.
- Commissions. If the seller wants to sell goods for cryptocurrency and receive fiat money in their account, the commissions will be paid several times: first, the buyer will pay a commission to the miners, then the seller will pay a commission for sending the cryptocurrency to the exchange service, and then this service will take a percentage for converting crypto to fiat.
The main benefits of crypto processing:
- Anonymity and privacy. When transferring traditional money, the recipient and the bank can usually see the amount and the name of the person who transferred the money. With cryptocurrency, the user can hide behind an address consisting of numbers and letters. This will not reveal your identity.
- Lightning transactions. Digital currency provides very fast and efficient transfers, including transactions across national borders. Regular traditional currency transfers can take hours or days, but with cryptocurrency, you can transfer money in seconds or minutes.
- Security. Crypto uses blockchains that contain information about the current transaction and all previous transactions. Therefore, you cannot change a block without detaching it from the rest of the chain. This makes it extremely difficult to hack the cryptocurrency.