Running a Business Crypto Wallet Versus Hands-off Crypto Processing

“To be or not to be — that is the question, whether ‘tis nobler in the mind to offer crypto to your customers as a payment medium while keeping your books fiat-only, or to dive in head first to the foam pit of crypto with a business wallet…”

Aside from poorly-adapted Shakespeare, you’ll find that the question of whether crypto payments are worth integrating is relevant for most of the businesses as mass adoption of digital assets spreads. The benefits of handling crypto are there for all to see:

• enabling instant, borderless and low-fee transactions
• opening up a product or service to the global market
• increasing cross-border revenue in over 70% of cases

However, there are two ways a business can engage with crypto. The first is integrating a cryptocurrency gateway such as CryptoProcessing by CoinsPaid to accept regular digital assets payments. Although we ensure the procedure is as smooth as possible on the client side, technical implementation of the crypto functionality via API requires certain time and effort. The second option is using a Business Crypto Wallet, which has a more limited functionality compared to processing gateway, but does not require any technical integration and can be set-up in a matter of minutes.

While both enable the benefits aforementioned, the key to understanding which path is right for your business comes down to defining your goals and the features of the market niche. Today, we’ll be discussing the ins and outs of both methods to help you understand exactly that.

Why are businesses looking to accept crypto?

According to a recent survey by Deloitte, nearly 75% of retailers plan to accept either cryptocurrency or stablecoin payments within the next two years. In case you’re unfamiliar with why businesses engage with crypto in the first place, it’s worth reviewing the reasons behind this whopping 75% figure posed by the world-leading management consultancy. When taken at face value, it might be asserted that crypto simply carries with it a number of benefits.

The better analysis presumes huge failings within the fiat system that the blockchain remedies:

• Firstly, cross-border transactions can often take up to 5 working days as they pass through countless layers of intermediaries. It should be a fundamental human right to move money instantly, which is what the blockchain allows in the form of instant global transactions. This is coincidentally a reason that explains adoption on both the merchant and customer sides.
• Secondly, within the fiat system, merchants will have to keep high rolling reserves due to the potential for chargebacks. The nature of the blockchain means that chargebacks simply cannot be carried out, which stamps out fraud on the merchant side and implies far lower rolling reserves and more available capital.
• Thirdly, commissions are much lower when it comes to crypto. Often, merchants face extortionate processing fees of up to 3.5% in the fiat world. When it comes to crypto, these fees plummet to 0.8%, and in some cases, even lower due to Loyalty and Ambassador Programs.

• Lastly, accepting online payments in crypto allows even the smallest of businesses to open their shop doors to the global market. This increases cross-border transactions and ultimately revenue. Combined with a close to 100% transaction acceptance rate and the reasons for this 70% figure become clear as day.

CryptoProcessing by CoinsPaid: Basics

CryptoProcessing.com offers the full spectrum of services for processing crypto that can be customised to fit any business model. Throughout its 8+ years of experience in the industry, there has not been a single instance of client fund loss, so security is at the forefront of this reason-train. Firmly the market leader, in 2022, over 8% of all transactions in Bitcoin were managed by CryptoProcessing.com with over 16 billion euros processed since the platform’s inception.

The platform is the obvious choice for businesses looking to process regular crypto payments with instant fiat conversions to keep the coins away from the accounting books. In addition, CryptoProcessing takes all the volatility risks upon itself. The service offers multiple payment method to fit any business model:

• Channel — a simple deposit in cryptocurrency not tied to a specific fiat amount. Your customers top up their balances for any amount in crypto at any time, while we convert it into fiat and credit their balances on-the-fly.
• Invoice — a payment in cryptocurrency tied to a specific fiat amount which needs to be settled in a short time.
• Payment link — a crypto deposit similar to an invoice, which does not require an immediate settlement.

HOW DOES CRYPTOPROCESSING.COM WORK?

We strive to provide the smoothest onboarding experience for our clients. If you choose us as your company’s crypto gateway, the procedure will look as follows:

Step 1. We create a personalised offer based on your business model and goals.

Step 2. We ensure the legality of the process by performing a KYB check of your company.

Step 3. We integrate crypto payment gateway into your systems via API.

Step 4. We provide constant support and software updates.

Moreover, CryptoProcessing.com provides marketing assistance, allowing our clients to expand their businesses and gain crypto users as a new traffic channel. In a nutshell, we are interested in mutually beneficial cooperation and growth rather than simply selling the service.

Business Wallet by CoinsPaid: Basics

Often, when one thinks of the term ‘crypto wallet’, a picture of an individual trader instantly comes to mind. Many are still confused by the idea of a crypto wallet for businesses. Much like a corporate debit card that can be used by a range of individuals within the company for actions such as payroll, procurement, and marketing, a crypto wallet can serve the same functions.

Business Wallet by CoinsPaid was designed to provide an effortless crypto gateway for businesses with no need of API integration. Unlike crypto processing systems, which require being implemented on the client’s side, wallets can be connected instantly. Moreover, merchants can use the system not only for processing transactions, but also storing crypto if necessary.

HOW DOES BUSINESS WALLET WORK?

There are still some questions as to the functionality of the business wallet, however. For example, what makes it unique? How can I open a crypto business wallet? First of all, access can be customised through the configuration of roles. Certain employees will be granted access to the account on a need-to-know basis, ensuring maximum security.

In order to remain compliant with global regulatory requirements, KYB comes as standard across the CoinsPaid ecosystem. Renowned partners in the compliance space ensure that risk scoring is applied to every payment to ensure AML and adequate due diligence. As an added layer of comfort to the client, CoinsPaid also holds its own in-house compliance team with a dedicated MLRO and a number of AML officers. As if that wasn’t enough, the wallet has been audited by both 10Guards and Hacken, with zero vulnerabilities detected.

When it comes to setting-up a Business Wallet, the procedure is as follows:

Step 1. You leave a request on our website

Step 2. We figure out your business’s needs and suggest the most suitable payment method.

Step 3. We provide the necessary software for using the wallet.

Step 4. You start accepting crypto payments right away.

If you were to ask – what makes a good crypto wallet for businesses? You needn’t look further than the aforementioned.

Which to Choose: CryptoProcessing or Business Wallet?

As more companies are being onboarded to digital assets, it’s seeming like an inevitability that crypto wallets and gateways are going to become necessary to conduct business. More and more employees will require payment in currencies such as Bitcoin or stablecoins such as USDC, while due to the better speed and lower processing costs, businesses will also prefer.

As a result, it’s likely that every business will have to set up its own crypto wallet or crypto gateway at one point or another. Assuming the higher demand, in the long run, prices will exceed previous peaks, while storing cryptocurrencies on the company’s books will offer exciting investment opportunities.

When it comes to choosing between the two, the first thing would be to determine how many crypto transactions your business would require processing.

• CryptoProcessing.com is suitable for high-frequency payments, which makes it most suitable for e-commerce, i-gaming, and any type of subscription businesses.
• Business Wallet will be a good fit for companies that are only dipping their toes in the crypto waters and does not require regular transactions. The wallet is most often used in real estate, IT, marketing, finance.

Of course, at this moment, it’s unlikely that a bakery in rural Wales will be experiencing a high demand for crypto payments from its staff and partners, so standard crypto processing may be more logical for certain kinds of businesses in the short run. However, the key is to ask yourself – do you see your staff, partners, or suppliers benefiting from the option to pay or be paid in crypto now or later down the line? If not, do you value the investment opportunities when it comes to dollar cost averaging in crypto? If either answer is yes, a wallet for small businesses looking to accept bitcoin is definitely the right option.