To be honest, they are various, and some of them open totally new open doors for your organization. When you start to integrate crypto as a payment method.
- Admittance to new segment gatherings: clients paying with crypto are generally totally new to an organization. Additionally, they spend two times as many Visa clients.
- An acquaintance of your organization with new resources and liquidity pools: customary and new resource types can be tokenized and utilized for your business purposes.
- Getting to potentially open doors not accessible if there should be an occurrence of fiat money: cryptocurrency enables instant transfers with enhanced transparency.
How to Integrate Crypto Payments?
Organizations will think about every one of the advantages and integrating payments in cryptocurrency. Thus, the more extensive crowd, the chance of drawing in clients from all around the world, and developing the organization’s revenue will be considered alongside technical and legal challenges. However long you deal with an organization, you will consider that it will conform to all the AML/CFT prerequisites which, thusly, implies that every one of the clients would have to pass the KYC procedures.
Here, you have a few choices.
You can accept crypto payments via an intermediary who will manage everything for you: the technical base, legal matters, and similar. The intermediary party accepts crypto from your clients, converts it to fiat, and sends it to your organization’s record.
Pros of a hands-off approach
- No issues from the technical side
- You can start benefiting from accepting crypto right away.
- Fewer if no legal issues
- The principal disadvantage is the cost. The intermediary organization will charge a fee, and frequently, this fee is not that low.
- The organization depends on the third-party vendor in all matters of crypto payments. Therefore, it is important to select such a vendor carefully.
- Network safety, and compliance with legal requirements, in this way it might influence your clients negatively if these details are not tackled properly by the vendor.
- Conversion rates are dictated by the vendor or merchants which could not generally be ideal for the organization.
- The significant piece of liabilities is still on you since you can’t simply move every one of the monetary obligations to the outsider particularly a third party especially when you need to handle an issue your client has confronted.
This approach implies that the organization is prepared not exclusively to utilize third-party services to acknowledge crypto but to deal with every one of the activities, including the depository work. This approach will expand the pay yet additionally, the number of specialized issues will support.
In the hands-on approach, the organization has two ways to choose from:
- To utilize the services of a depository bunch that will deal with the custody over crypto and gives the wallet to the management service.
- Integrate cryptocurrency into the organization’s financial system and manage everything independently.
While the first case is easier to implement, the second care means more independence and flexibility, as well as more responsibilities. Whatever way you choose, you can at least save on using an API instead of developing a new solution.
Taking a hands-on approach, you shall consider the following major details:
- Accounting challenges: Crypto is highly volatile, and most likely, you will handle accounting considering crypto equivalents in fiat money. It might be a challenge due to the high crypto volatility.
- Taxation: You will have to find out how transactions in crypto are regarded in your location and adjust your taxation documentation respectively. And do not forget about the volatility: even if you have to pay taxes for income in crypto, they will be paid in fiat money. Therefore, it is important for the organization to record the asset value at the time when the organization took ownership over it. Consider also all indirect taxes. In different places, they may differ significantly depending on the crypto legal status there.
- Technical challenges: If you do not hire an organization to handle it for you, you might need to hire some new specialists who know how to implement crypto solutions.
Cryptocurrency opens new opportunities for any organization as long as the organization knows how to integrate crypto payments correctly. And if you want to integrate the crypto payment API feel free to drop a query on email@example.com.
We as a bitbatua – India’s first crypto payment gateway are trying to begin a revolution in the digital payments system. Our ultimate mission is to grow the adoption of cryptocurrencies on a global scale by offering easy-to-use, secured, and cost-efficient payment services to both merchants and customers.
We’ll more than happy to assist you with this. Think properly, research the market and the crypto-laws in your country, and make a wise decision.
Stay tuned for further updates, crypto guides, and market insights from bitbatua.