Online stores are not yet interested in accepting cryptocurrency
Crypto processing solutions will make crypto a means of payment
Security remains the main concern of crypto payments
International consortium of news organizations developing transparency standards.
Online stores and global marketplaces are in no rush to accept cryptocurrency as a means of payment. Moreover, some establishments refuse digital currency in order not to violate the laws of the country in which they operate.
How the landscape of services involved in processing payments in cryptocurrency has changed, why online stores are in no hurry to introduce digital currencies as a payment method and what is the reason for the growth of crypto processing, he told in an exclusive interview for BeInCrypto CoinsPaid CEO Max Krupyshev.
– In the last year, there has been a real boom in the market of processing services. Many services have emerged claiming that they are ready to process payments in cryptocurrencies. What is the reason?
M.K .: Earlier, the acceptance of cryptocurrencies as a means of payment was introduced more for ideological reasons. These were the companies that believed in the future of cryptocurrencies. One of the pioneers in crypto processing, Bitpay, raised tens of millions of dollars in funding rounds already in 2013, and it seemed that these guys were the future and they could not be kept up. But they chose the e-commerce path. In fact, these are only online stores. And they had little interest in the new payment method. At that time, cryptocurrencies were little used for ordinary purchases on the Internet. It was more of an investment vehicle or asset for large transactions than small spending. Let me emphasize that I am talking about legal business and products and services within the framework of the law, and not about settlements for illegal actions on the darknet. Not a single reputable processing service will deal with this area..
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Now the situation has changed. Companies began to enter the market that do not follow the very idea of promoting cryptocurrencies, but simply see this as an opportunity for profit. Often these are platforms that want to have a provider inside them, so as not to count on third-party solutions. Their desire is due to the increasing frequency of blocking payments in fiat. There are many restrictions when making payments via Visa and Mastercard; alternative methods, such as various wallets, also have their own nuances. Creation of crypto processing services for such platforms, rather, was an attempt to solve their own problems, but not through partnership with some provider, namely through the development of their own solution.
– You said that online stores have little interest in accepting payments in cryptocurrency. Why?
M.K .: The online store does not care what to accept payments through a processing service that has an automatic conversion service to fiat. The question is that this method is in little demand among buyers in such online stores. And then it makes no sense for the store owner to introduce another payment method. Why, if everything works fine anyway? They have great rates from Visa and Mastercard with low fees. Online shoppers rarely abuse the return service. Often online stores do not work for the global market, but only for the local one. Thus, for online stores, cryptocurrency does not solve almost any pressing problems. If such payment methods are introduced, then more often for advertising or marketing purposes.
– Who then needs crypto processing services if online stores are not interested in them??
M.K .: There are two types of payments. The first one is by invoice. For example, this is an online store that sells sneakers. He needs to accept a clear amount, say $ 100. Neither $ 99 nor $ 101 will work. The second option is not invoices, but an asynchronous deposit process. In this case, the amount is not limited by the seller. This type of payment is often used to pay, for example, a mobile phone, the Internet. The user’s personal account is replenished with the amount that he determines, and the fee for the services rendered is debited from his account. Payment terminals, which are located in shopping centers, work on the same principle. How many bills they bring in, they will accept so much. Of course, within the limits of the amounts permitted by law. Carrying out the second type of payments, not on invoices, but for asynchronous deposits, turned out to be the most demanded service among crypto processing services.
These are mainly gambling and betting platforms. In this area, the need for a convenient payment method using cryptocurrencies is higher than other areas. Almost all gaming providers, casinos, sports betting work with the internal balances of users. They don’t sell anything, so they don’t work with invoices.
– Is the growth of the crypto processing market related to the difficulties that online casinos have with accepting payments through Visa and Mastercard??
M.K .: Most likely, yes. The cryptocurrency was originally launched as a protest against any restriction of freedoms. And now we again come to the conclusion that cryptocurrency is a kind of payment method that no one influences in any way. If somewhere something is blocked, for example, in the UK you cannot use credit cards to replenish balances on gambling platforms, and somewhere they are completely prohibited, although they have nothing to do with drugs, terrorism or pornography, then the market provides an answer to these restrictions freedoms. Cryptocurrencies help solve the problem of payment freedom. Let me emphasize that this is a legitimate business, not an arms trade, drug trafficking or pornography..
– What solution to the problem do you see? How your solutions can help your business?
M.K .: Coinspaid’s mission is to provide businesses with an opportunity and infrastructure for risk-free acceptance of payments in cryptocurrencies. We enable people around the world to pay for and receive the services they need.
I have been working in the field of payment services for a long time. When I came to Coinspaid, I implemented those business solutions that I had already tested on other projects. I knew they would help me achieve rapid growth. The emphasis was on the product that enters the market, in its needs. Customers needed such a product. As I said, the already existing crypto-processing services were either focused more on e-commerce, which had little interest in cryptocurrencies as a payment method, or did not inspire trust due to the dubious reputation of the team of creators and the incomprehensible legal status of the operator..
We do not work with unethical businesses. We check our clients for ethics, clarify the origin of funds, their legal status. We take business ethics very seriously. We track whether our client does not accept money from some sites with a dubious reputation, mixers or from the darknet.
– What is the growth rate of the volume of payments made now?
M.K .: It was possible to achieve an average annual growth of about 10-20% per month. There are, of course, less successful months when there are pullbacks of 5% -10%, but they are compensated by spikes in growth, when we grow by 40%.
I would also explain that no more than 10 million transactions can be carried out on the bitcoin network per month. The bitcoin network is designed like this, blocks are mined in it at an approximate rate of 1 block per 10 minutes. Therefore, there is a ceiling that limits the number of transactions. It was possible to increase the share of the bitcoin transactions market thanks to this.
– What is the volume of other cryptocurrencies?
M.K .: In addition to Bitcoin, ETH, BCH, LTC, USDT are popular. The market share of transactions in BCH or LTC is also about 3%. It is problematic to analyze on the air, because due to the growth of the DeFi sector on the network, this year the number of various transactions, not always payment.
But bitcoin remains the most popular coin. BTC accounts for over 80% of transactions through Cryptoprocessing.com Coinspaid. Although it is the most limited, old, unsuitable cryptocurrency for payments.
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– How cryptocurrencies are converted? What to do with the course, because it can change several times a day?
M.K .: If this is an invoice, then a specific link is generated for the buyer, where it says “send so much cryptocurrency to such and such address within such and such time.” The exchange rate for this time is fixed. How many coins are needed to pay for a product or service is automatically calculated, and a new address for payment is generated. As soon as the client sends a fixed amount in cryptocurrency to this address, the system checks if the 15 minutes for which the price was fixed have passed. If the client did not meet the 15 minutes allotted for payment, then in case of an increase in the rate of the cryptocurrency, the client will receive a link to receive change, and in the case of a decrease in the rate, a link for an additional payment.
As soon as the transaction goes through, it is reported that the invoice has been paid. The provider guarantees that even if the rate changes during these 15 minutes, the seller will receive the required amount, no more and no less. It doesn’t matter where the price goes. The seller in the account of the payment provider will see the receipt of funds after the automatic conversion to the selected fiat and will be able to withdraw them to his bank account.
– What about security?
M.K .: We have passed two security audits. The first one was at Kaspersky Lab, during which no serious technical vulnerabilities were identified. We took the second audit from a group of white hackers. They have been trying to find holes in our security system for some time. They came from both users and business clients. They registered personal accounts and tried to deceive us in some way, attacked from the inside, from the outside and through the hosting. We passed this audit successfully, they were not able to find critical bugs. We have already fixed all the minor bugs that appeared during the two audits..
We plan to continue to undergo a technical audit every six months, because we are constantly expanding and introducing new products. The crypto industry is an area where it is critical that products are safe..
– Thanks for the conversation
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