A cryptocurrency payment gateway is defined as a payment processor for digital currencies, ideal for use by crypto companies. The processor functions similarly to normal payment processors and gateways by acquiring credit card or other payment details.
When a company has a cryptocurrency gateway, it allows them to accept digital payments and receive fiat currency immediately in exchange. This simplifies the payment process, allowing for quicker turnaround times, and creating a more user- friendly process. It’s easily integrated into a companies API, making it a seamless and easy processing tool.
Despite the increased uptake of Crypto Apps, they still face many challenges – here are some of the challenges they’re facing, and the solutions that payment platforms could bring them:
Crypto trading and blockchain technology are vulnerable to cyber threats, mainly due to the high demand for them, coupled with the high monetary.
Basically, this means personal information entered into crypto platforms is at risk of being stolen, but a secure payment platform can greatly reduce this risk, by ensuring they’re compliant with the same regulations in place for financial institutions.
Using these payment platforms allows them to perform AML (anti money laundering) and KYC (know your customer) checks for on-boarded traders- these platforms are generally far more robust when it comes to cybersecurity, and crypto companies can rest assured that their clients’ information is safe from cyber attacks.
Limited access to banking
Crypto businesses are perceived as high risk to banks, and as a result banks are cautious when taking on businesses that trade in upcoming markets as crypto is considered an unstable market.
Payment platforms allow crypto companies to create something similar to a bank account where they can easily transfer and accept clients’ funds. Transactions are also monitored, allowing the company to stay in control and ensure that funds are allocated to the correct recipient.
These platforms also allow crypto companies to make international bank transfers as quickly and securely as they would with a bank account.
Inconvenient user interface
One of the complaints crypto trading Apps receive is that their user interface is confusing and difficult to use, so a lot of traders choose to trade on other platforms which are more user-friendly.
Pairing with a payment platform ensures your user-experience is better because the platform’s product is already tried and tested. Traders can easily make and receive payments when using such a platform, and it usually integrates easily with your API so is not difficult to install.
Many online traders feel that they don’t have adequate customer support. There are many reasons for this, and in some cases the crypto application does not offer any customer support.
We know customer support is essential for any financial institution, as a myriad of things can go wrong, funds can go missing or even simple user errors need to be sorted.
It’s essential to ensure that a crypto company has customer support set-up to assist when clients make and receive payments, no matter how well a platform has been set up, programs can still malfunction.
Developed payment platforms usually come paired with a built-in customer support team where clients can speak to support staff who can help them with processes, and ensure their funds are correctly allocated.
When working with clients’ funds, it’s important to bear in mind that should something go wrong, someone needs to be able to talk the client through what’s happened, and how this can be prevented in future transactions- it’s best to rely on an individual who’s been trained in customer services to help keep your clients happy.
PayPugs as a payment platform
Having PayPugs as a payment platform will save you money and time. With PayPugs Banking as a Service, the crypto company can open a bank account for each of the end-users. All this is connected via an API (Application Programming Interface), and the end-user is unaware that PayPugs is providing the service, because everything will go through the crypto company’s interface.
PayPugs will also allow you the opportunity to launch a virtual card program, where each of your end-users receive a company branded virtual card. This helps to increase user retention and build loyalty, as well as, increase your revenue stream.
If you want to know more about our offerings, be sure to visit our website or book a call with one of our experts to guide you through the many products and services we offer.