Supporting the growth of cryptocurrency transaction with payments
Providing seamless payment journey, with the options for customers to pay with their preferred local payment methods, is not only necessary for international crypto exchanges, but it is key to make trading easier and accelerate the speed and growth of crypto transactions. This, however, is easier said than done.
Identifying all the major payment solutions in each country, understanding their offer, closing a contract with them, going through the integration, etc., takes resources and time. Having a partner that gives them access to all local payment solutions globally, through one integration and one contract is the most efficient and effective way to scale fast and optimize internal resources.
Without a trusted partner on the payments side that delivers a good user experience as well as simplifying reporting and reconciliation, it’s almost impossible from crypto operators to scale, enter new markets and expand their customer base. Navigating through the financial regulations on a global scale is not an easy task, and operators should partner with global established players that have been successfully operating for years in this ever-changing landscape.
Spotlight on digital wallets
In the payments industry, we have seen an increase in the adoption of local payment solutions in different markets, including account-to-account solutions or digital wallets. There are more local players that capture a good share of the market with their ‘alternative payment solutions’. This is proven by the rise of digital wallets that has grown over 40% year-on-year in Latin America alone, and it is expected to be adopted by one third of the global population by 2024 whereas 51.7% of transactions are predicted to be cashless by the same year.
The growth of digital wallets is also driven by payment solution providers or operators enabling transactions in local payment methods, which can be used by merchants to offer their customers convenient and simpler payments at checkout, or an easier way for users to upload their funds into their wallets. This is made possible by a simple integration and a payment network across different countries.
When it comes to crypto payments, trading and exchanges, digital wallets offer superior checkout solutions as it is built upon user experience and usability. It is designed so that users can complete a transaction with a simple one touch, resulting in shorter payment journeys, better payment experience, and more conversion for merchants/operators.
The future of crypto lies in seamless payments
As crypto and digital currencies push further into the mainstream more than ever, crypto exchanges require a payment strategy that facilitates easy transactions and aligns with the latest technology and security standards. Offering a wide range of local payment methods is paramount to engage new demographics.
As soon as a new alternative payment method (APM) is added to the checkout, there is a fresh stream of users and volume coming through. This is particularly true for solutions like digital wallets which have been proven to be the most convenient way to pay for transactions through a mobile phone. Due to convenience, speed and added security, this type of mobile payment option is only getting more popular among users, mostly within the younger populations who are considered digital/mobile first.
Digital wallet also comes with loyalty programmes and rewards for end users that can be used by crypto exchanges or merchants offering crypto payments in order to increase engagement, personalization, and conversion rates.
What’s next
The partnership between crypto currency companies and payments solutions provider brings a lot of opportunities to make financial transactions borderless and frictionless for all users. It is an innovative way to attract users, drive crypto currency adoption and reshaping the future of payments.
Crypto payments is not a new thing but with increasing interest in crypto trading, crypto exchange platforms now face the challenge to stay ahead of the competition and elevate their operations across borders to reach new markets and a wider scope of users.
