Crypto payments are becoming increasingly demanded among international businesses as this option provide cost reduction comparing to card acquiring, but some hidden expenses may still reduce the revenue.
Consulting agency Monoup helps digital merchants to structure their payments to achieve high conversions and lower costs including with crypto. Today we concentrate on main ways to not to overpay for crypto rails and get the most of their benefits.
Connect What you Actually Need
First and foremost, do not be overwhelmed by the number of available tokens on the market. Nowadays a lot of companies create their own coins and not all of them are actually required at your checkout.
The task for every digital merchant is to provide the necessary options and cut distractions during payment. Start with main cryptocurrencies that are valued by audience, such as Bitcoin, Ethereum, Litecoin, USDT, USDC, complementing them with a few locally preferred options for your target markets. This will create a solid base for your crypto cashier and will not confuse customers when they’re making their choice. By keeping an eye on industry trends, you may adjust this setup from time to time ensuring the relevant offer.
Manage Volatility and Risk
Most of cryptocurrencies except stablecoins are subject to exchange rate fluctuations. Bitcoin may fall down for several percentage points overnight, while other smaller tokens are highly dependent on it.
This means that your assets also may decrease when you do not monitor the market. To avoid these losses, merchants apply different strategies, such as automated conversions from volatile tokes to stablecoins to store most of the liquidity in stable value or trading techniques. Selling and buying different tokens can also bring additional profit, but only if trader understands the risks. Otherwise, your portfolio may suffer substantial losses.
Take Care of Compliance and AML
Probably the most important part of crypto payments handling is AML (Anti-Money Laundering) legislation and compliance with its rules internationally. Unfortunately, cryptocurrency became a way for many fraudsters to hide their profits and illicit the system with illegal use. That is why its anonymous nature is fading away and most countries already implemented regulations and laws to protect consumers from crypto fraud and monitor exchanges and merchants’ activities.
Adhering to those rules means using proper AML and KYC instruments, develop policies and monitoring systems that can catch any suspicious activity within your infrastructure and stop it. Every crypto provider is required to scan transactions and users against sanctions lists and potential threats markers. Regular merchants, on the other hand, are not required to do so on the same high level, but they need to take care of their choice of PSP and make sure the overall platform safety.
Using licensed crypto payments provider and recognized AML instruments is the first step in order to comply with legislation and ensure your business in not becoming a part of illegal activity. Especially if you operate in gaming or similar field, which often becomes a target for fraudsters.
Transact Smart and Only When Needed
Excessive number of payments and chaotic transfers between own wallets can also create additional charges and losses. Unnecessary exchanges between tokens also generate fees and may influence liquidity in the long run. Therefore, for any business owner is highly important to plan the cashflow and forecast the money movements before they are done.
All these ensure that your operations are optimized and benefits from crypto payments are excel the cost of implementation.
To audit your payment infrastructure or connect suitable payment providers reach out to Monoup’s team today!
Monoup Unveils Ways for Crypto Payments Optimization in Digital Business