In recent years, virtual money have enlarged its representation as a means of payment, no doubt. It is a financial instrument in many countries: El Salvador, Honduras, Switzerland, Turkey, to name a few. Giants like Amazon, McDonald’s, and Starbucks accept crypto payments almost everywhere. Fashion high-fliers, including Gucci, Off-White, and Balenciaga, are gradually adopting cryptocurrencies.
Nevertheless, surveys show that 67% of cryptocurrency owners and above 50% of non-owners feel that there are too few businesses accepting crypto and ask how to receive it conveniently. This data shows that cryptocurrency payments are underrepresented. It means you can be an ambitious visionary who will introduce crypto to more companies. In this article, we are discussing how to make a thriving business in cryptocurrency processing. Off we go!
It is a gateway that enables buyers to purchase goods in cryptocurrency. In fact, this tool resembles acquiring and p2p operations, yet is peculiar in certain aspects:
Transactions are cheaper, and fees rarely exceed 1% because no intermediary governs transactions
Tracking is convenient because a business can see what client sends money for which product
Exchange is automatic, which reduces volatility, plus removes the need to convert crypto to fiat for accountancy
Besides the general characteristics mentioned above, a poll among American entrepreneurs conducted by the audit company Deloitte in December 2021 demonstrated even more:
|Improved customer service
|Quick access to funds
|Expanded customer base
|Internal revenue administration
|Innovative brand image
|Blockchain-based technology for DeFi
Initially, companies allowed a bitcoin payment method as part of their marketing strategy. Meanwhile, the situation changed drastically. Now businesses seek processing for economic efficiency and instant payments, planning to work with virtual money long-term.
Nevertheless, cryptoprocessing can be implemented into a solely crypto-based enterprise, for example, wallet. In white label cryptocurrency wallets, processing is part of the package.
Cryptocurrencies are becoming a cost-effective alternative to international bank transfers. Entrepreneurs of any level want to know how to accept cryptocurrency. In this regard, becoming a provider is a high-potential business. As per the payment service provider Paysafe, 56% of retailers admit that digital money is the future. Furthermore, they sense that without this instrument, they will lose customers.
What do you need to become a provider?
You should review developers who specialise in this field and can provide a turnkey service for your business, with maximum simplicity and minimum risks. Check the previous projects of your developer. We also recommend contacting owners and users to get unbiased insights into the capabilities of your future gateway.
To professionally weigh up the pros and cons, here is a checklist of questions to ask when searching for the right developer:
After accepting comprehensive answers, you can choose the most appropriate crypto processing engine and move on to another requirement.
Based on the country of your business, you will need to legalise your company accordingly. For example, in the US, a crypto processing enterprise is deemed a money service business, thus demanding you to get a licence and pay taxes. By comparison, Swiss and Estonian governments are more friendly, since they do not require that you pay VAT. All in all, it would be wise of you to follow regulatory framework updates for a chosen jurisdiction.
Remember the Deloitte survey? Analysts also asked its participants about the obstacles they faced accepting crypto payments. 43% of respondents note that the real concern is to guarantee customer security. A full-fledged crypto processing business cannot operate without meeting the prerequisites of AML/KYC standards.
An AML/KYC department holds responsibility for verifying customers when they transact money. These specialists also check the source of crypto, whether it was on the darknet, involved in terrorism, money laundering, or other prohibited activities. In other words, you need an AML/KYC team to fulfil the requirements of financial monitoring and maintain customer security.
How much money do you need to open your crypto processing business? Costs primarily rely on your processes. Here come the basic expense items:
We recommend avoiding withdrawing funds from circulation before your enterprise profits. Spend the startup capital only on business needs. Furthermore, consider force majeure, for instance, a rent price hike. For that, always keep a reserve sum.
Calculating your startup capital in advance will boost your chances of establishing a thriving business. You will not fail because of funds insufficiency for rent or purchase. To highlight essential cost items, draw up a business plan first.
The Deloitte survey reveals that nearly 75% of retailers plan on embedding cryptocurrency within the next 2 years. With that said, think about launching your own company that will facilitate integration with a crypto payment gateway. As the developer of crypto solutions, Merkeleon offers you its white-label processing service and professional assistance at every step. To discuss this product and negotiate the terms of collaboration, contact our specialists at any time.