Cryptocurrency Payments: Will Cryptocurrencies Provide Viable Alternate Payment Mechanisms?

Our BitPay Protocol does away with payment exceptions like over or underpayments, late payments and double spends, ensuring the smoothest and safest experience possible. Check out our Merchant Directory for a curated list of partner merchants that accept crypto through BitPay. A cryptocurrency payment gateway is a payment processor for digital currencies, similar to payment processors, gateways, and acquiring bank credit cards use.

  • The IRS rules for accepting cryptocurrency also mean that you must keep track of the value for each cryptocurrency on the day it was received and the day it was sold.
  • Everyone strives to achieve accessibility, security, and convenience when it comes to managing their finances.
  • The price of a Bitcoin fell from a high of about $1,160 in December to under $400 in February.
  • In centralized banking and economic systems such as the US Federal Reserve System, corporate boards or governments control the supply of currency.
  • Non-fungible tokens are digital assets that represent art, collectibles, gaming, etc.

In this free Massachusetts Institute of Technology class, SEC Chair Gary Gensler explores Bitcoin, blockchains, and money. In this 2008 paper , pseudonymous engineer Satoshi Nakomoto proposes Bitcoin, the first cryptocurrency. Cryptocurrencies have also given rise to a new set of challenges for governments to contend with, including concerns over criminal activity, environmental harms, and consumer protection.

The world of crypto moves fast. Keep up.

It is not a commitment to deliver any features or functionality, and should not be relied upon in making purchasing decisions. Please consult your own lawyer with respect to your situation, including, without limitation, the legality and legitimacy of cryptocurrencies in your jurisdiction. Lunu accepts Bitcoin, Ethereum, USDT, USDC, BNB, XRP, and TRX settled in USD, EUR, GBP, or over 70 other fiat currencies. We offer a large range of products and services to enhance your business operations. “You can imagine a new kind of financial system being constructed out of blockchain-based tokens that have advantages over the old, centralized kinds of money.

Therefore, it is debated whether anybody could even be sued for embezzlement of cryptocurrency if he/she had access to someone’s wallet. However, in the law of obligations and contract law, any kind of object would be legally valid, but the object would have to be tied to an identified counterparty. However, as the more popular cryptocurrencies can be freely and quickly exchanged into legal tender, they are financial assets and have to be taxed and accounted for as such. Notable businesses include Garantex, Eggchange, Cashbank, Buy-Bitcoin, Tetchange, Bitzlato, and Suex, which was sanctioned by the U.S. in 2021. Bitzlato founder and owner Anatoly Legkodymov was arrested following money-laundering charges by the United States Department of Justice.

Visa’s vision for supporting digital currency

Revenue and Finance Automation Grow your business with automated revenue and finance. One-year immersion program is designed to bring together a global cohort of creators interested crypto payment solutions in building their business with NFTs. Check out Visa’s latest crypto insights, watch interviews with crypto leaders, see how crypto solutions are brought to market, and more.

What is a cryptocurrency payment

With the Binance Card, you can convert and spend your favorite cryptocurrencies at more than 60 million merchants worldwide. Enabling an additional gateway doesn’t impact your existing gateways. If you have issues with registration or payments for a cryptocurrency gateway, then you can contact the support channel for that cryptocurrency gateway. BitPay accepts 14 cryptocurrencies including Bitcoin, Bitcoin Lightning, Ethereum, and Dogecoin settled in USD. accepts over 20 cryptocurrencies including Bitcoin, Ethereum, and Dogecoin. Cryptocurrency payment gateway, B2BinPay, is one of the main players in this space, facilitating blockchain payments worldwide.


After you enable a payment method that supports cryptocurrencies, you can accept any cryptocurrency that is supported by their service. Because of its usefulness in tracking transactions, blockchain technology has a range of potential applications beyond cryptocurrency, experts say, such as facilitating real estate deals and international trade . We can see a wholesale adoption of cryptocurrency-based international payments for legitimate purposes emerge; however, the volume is relatively low, which may hamper progress.

What is a cryptocurrency payment

If you’re considering accepting cryptocurrency at your venture, here are some benefits and disadvantages to offering this payment option. According to a study of BitPay customers conducted by research and advisory firm Forrester Consulting, 40% of customers who choose to pay with crypto are first-timers to the merchant. Besides, blockchain-friendly customers tend to spend twice as much money than those paying with credit cards and are more prone to come back another time if their experience is positive. Fighting fraudulent chargebacks is always an unwanted burden but is absolutely necessary as each undisputed chargeback might punish a merchant with a hefty fine from the bank and a loss of entire profit from a sale.

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Scammer pretends to be someone you trust to convince you to send them money by buying and sending cryptocurrency. They’ll promise free cash or cryptocurrency, but free money promises are always fake. Because cryptocurrency exists only online, there are important differences between cryptocurrency and traditional currency, like U.S. dollars.

What is a cryptocurrency payment

A considerable proportion of customers using cryptocurrencies are new to the merchant and the ticket size is double that of credit card users. In our view, crypto payments are poised to rapidly scale in the near future given their ability to lower cost of transaction processing, reduce the risk of fraud, and enhance transparency sought after by customers. A crypto payment service provider acts as an intermediary between the payer and the receiver for processing the crypto payments, allowing merchants to accept payments in cryptocurrencies both online and at physical locations. The service provider takes care of the complex backend workflow of crypto payments and offers buyers and sellers a seamless payment service. If cryptocurrencies become a dominant form of global payments, they could limit the ability of central banks, particularly those in smaller countries, to set monetary policy through control of the money supply.

#5: Embrace new, wealthier customers

Whether this change is driven by the emerging technology players or whether any of the current players can move rapidly enough to remain in the game has yet to become clear. In first-generation distributed networks, each node has a copy of the entire blockchain. If we again take Bitcoin as an example, the current Bitcoin blockchain is about 360 GB. Every new block adds 1 MB, and a new block is created every 10 minutes. This data must be transmitted between nodes and stored across the distributed network. Scaling this to handle the volume of transactions needed to make it a realistic competitor to the existing fiat payment systems is impracticable.


As a result, businesses don’t wait for payments to clear a foreign bank or pay the costs. Fiat payment gateways approve or reject bank card and electronic wallet payments based on customers’ bank card details. Using a crypto payment processor, you can easily accept cryptocurrency payments and offer your clients more payment options to choose from. It’s important to note that digital currency payment gateways are not required. It’s perfectly acceptable to use your personal wallet to accept cryptocurrency payments; however, gateways take the extra work of exchanging cryptocurrency and managing a wallet out of your hands. Accepting crypto payments can help merchants access new customer segments.

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