How does blockchain payment processing work?
Have you ever thought about using blockchain technology to assist in your payment processing needs? As a customer, have you ever wished you could use Bitcoin or some other cryptocurrency for a purchase you’re making? I know I have.
Just the other day I was thinking, I wish I could order the takeout I wanted at the time - Chinese food (the American version at least) - and I wanted to use some excess crypto I had sitting in one of my ethereum-based digital wallets. It’s cool to think if they’d had Pay It Now payments platform we would have been able to transact and been rewarded for it. Wow! Instead I had to order and use a bank card which the merchant and I both paid multiple third-party companies to facilitate. Even bigger wow!
Payment processing is a necessary part of any business. It’s typically well-planned and thought through thoroughly, before being decided upon long before any doors are ever opened to paying customers and clients. Payment processing is a serious matter for small businesses and large corporations. No business wants to throw money away unnecessarily on payment processing costs or any other malleable business expense.
Pay It Now payments processing and blockchain payment gateway uses the blockchain to facilitate payment processing for our business and retail merchant clients. The blockchain gives so many advantages to payment processing. Blockchain payment processing is still relatively new in the payments processing sector - just being a few years old now, but blockchain technology payment processing is gaining substantially greater levels of popularity and adoption in the business and finance sectors.
A number of reasons for using the blockchain for payments processing
Payment processing has long been monopolized by the large credit card and banking companies. Rates have almost exclusively been decided by credit and debit card furnishers. Then the payment processor companies step in to add their own fees into the equation for the equipment and/or technology used to complete the individual payment transactions, as well as other justifiable costs they charge to merchants.
The thing is, almost any cost is justifiable since merchants depend on these traditional payment gateways to accept traditional fiat-based payment methods. Financial companies like Visa, Mastercard or American Express furnish individuals and businesses with retail or business credit or debit cards that require a specific payment gateway controlled by centralized authorities.
Merchants really haven’t had much choice, until recently thanks to the blockchain. The blockchain has created a number of advances in many parallel and even unrelated industries for a number of reasons.
- Fast processing times.
- Low transaction/gas costs.
- High security environment.
- 3rd party validators not required.
- Global reach.
There are plenty of reasons to move over to the blockchain for your business’ payment solution if you aren’t already. So many businesses and individual contractors, like professional service providers, tech contractors, arts and entertainment, entrepreneurs, and big organizations like professional entertainment companies, universities and pro sports teams, have started accepting digital payments. It wouldn’t be surprising if one day you have to use a form of digital payment for all of your purchases. Why not get familiar now?
How does payment processing affect business and economy?
Business and finance always evolve rapidly. Needless to say, it’s extremely important to stay up to date when conducting business in a world of 7.7 billion people. If not, you’re pretty much bound to completely miss, or at least be late to some important innovation that changes things in the present, and/or future business landscapes.
It is probable that technology has developed even more rapidly than business. In recent years the technological advances made by the blockchain have only accelerated that already fast rate of speed. The blockchain is everywhere. Schools and universities are not only teaching about it, but also actively using blockchain tech in their day to day operations in some cases across the world.
Nowadays if you’re not at least engaging in the blockchain technology to comprehend its implications and potential impact on your particular business industry, you may not be putting your company in the best position to succeed. It is vitally important that blockchain technology, cryptocurrency payment processing solutions, and the related tech be comprehended by every business planning to be operational for years to come.
Money - payments are the way in which business and life moves and flows. Currency is the medium of trade for an ecosystem, and comprises the money supply of that economy. Cryptocurrencies represent money on the blockchain. Crypto means key, and currency is obviously money, or the representation of money, making it acceptable for legal tender, goods and services, Payment processing is necessary to move goods and services. Blockchain payment processing is the newest of the evolving payment processing methods.
A brief history of blockchain payment processing
The blockchain has been used for payments processing for some time now. August of 2013 the US federal courts upheld Bitcoin as a currency or form of money, and not long after in March 2014 major card processor Stripe, began equipping their platform to accept Bitcoin as a valid form of payment. Later in December of that same year, 2014 - PayPal, expedia, overstock.com, Microsoft and a few other notable major companies began accepting Bitcoin for payment.
The utilization of Bitcoin and other cryptocurrencies as payment has been on the rise since blockchain tech has given way to that reality. The first significant increase seen in blockchain payment processing was back in 2017 when BTC jumped over 30% from Q1 to Q4 as a preferred payment method.
According to Mordor Intelligence, $5.4 trillion USD was processed in digital payments in 2021, and that transaction volume is expected to more than double that by 2026.
PIN payments processing is providing payment solutions to businesses and online retailers to be able to accept cryptocurrency payments and take advantage of what’s ahead, if what’s already transpired to date is any indication of what the future might hold. If so, the well-documented history of rapidly-increasing blockchain payments processing among B2C and B2B relationships should be a clear sign of far greater adoption incoming soon.
What are some advantages of payment processing using blockchain technology?
Implementing blockchain payment processing can have huge positive implications for any business operation. Whether individuals, sole proprietors, small or large companies, blockchain capability in payment processing is considered by many to be almost necessary going forward, and PIN has set up for that shift.
Blockchain technology affords us major advantages and having it included in your company’s payment processing services is honestly just an intelligent move. Pay It Now cultivates the value provided by those advantages from blockchain tech as part of our PIN solutions and PIN payments specifically.
Blockchain payment systems facilitate fast, secure, inexpensive payments in crypto over a trustless, peer-to-peer network. Decentralization makes a strong case and is one of the many convincing advantages to making your company’s payments systems blockchain-capable if it’s not already. A few recognized advantages are:
- Convenient payment method.
- Ease of management.
- Economic progress and profit.
- Safety and security.
Digital wallets are a convenient way of paying for goods and services in-person and online. It reduces individuals’ need for cash and clunky purse bags with stacks of cards and receipts for tracking. The blockchain and digital money - crypto, makes things easier and the record is there on the public blockchain ledger forever, for receipt and tracking purposes. There are so many advantages to switching over to a digital platform and accessing all that a cryptocurrency payment system can offer.
One of the clear advantages of using blockchain-based crypto payments systems include the low gas fees required to move crypto through the blockchain network environment. The cost to process transactions through a digital blockchain payment system is considerably lower than fiat processing.
Multiple middle men involved in typical centralized bank account and debit/credit card transactions make transaction costs significant. Consumers and merchants pay higher costs for fiat-money transactions because of this.
Payment processing companies can charge multiple percentage points higher, bringing fees to process card transactions to 1.7% - 5.1% globally, depending on the specific processor. Whether in a brick and mortar business location, or online, the lower fees are certainly worth business owners, contractors, and entrepreneurs looking into for a better payment system.
Digital currencies on any one of the number of active blockchains, are trustless and don’t require the same external verification process for transactions. The blockchain validation method works fine to produce the public blockchain record of all validated transactions. This process is done at a fraction of the cost involved in traditional payment processing methods.
Fast payment processing
Something else a blockchain payment platform provides is speed. The way blockchains have innovated other fundamental networks, like in the cases of Polygon and the Binance Smart Chain. Both globally recognized blockchains are considered leaders in the digital era which effectively scaled the ethereum network to create networks with greater flexibility and speed.
Innovative minds and teams of individuals are using blockchain technology to make wonderful advances for humanity, and speed is one such progression. Fast payment processing is something digital currencies certainly have that benefits consumers and businesses.
The 21 point validator Binance Smart Chain system enables most transactions to be sent, validated and processed sometimes in as little as 3 seconds time - fast. The speed doesn’t adversely affect security either. The superior security of Binance Smart Chain, and blockchain ledger technology in general, is so secure, today it’s trusted by most global investment banks and firms.
Secured trustless ledger system
Security is a priority when payment processing is the topic. Security is paramount. Without it, speed, low fees, and every other potential benefit wouldn’t be worth looking at twice. Pay It Now recognizes the importance of security, and have built our payment gateway solution to be highly secured on the blockchain network. When our merchants open their payment gateway to their customers and clients who desire to pay with crypto online or in-person, they are confident in a tightly secured transaction environment.
The trustless blockchain environment has a significantly high security level. As long as businesses and merchants do their part to protect the integrity of sensitive information regarding the payment systems process in order to prevent, or at least minimize avoidable security breaches, all payments and transactions performed on the blockchain payment gateway will be accurate and safe.
Any online or brick and mortar retailer or business in need of payment solutions with a high degree of inherent security and network integrity, is encouraged to look into Pay It Now Payments and other solutions.
Save on payments systems cost
As it has been noted, payment processing costs can really get up there. Many merchants have multiple payment systems at their disposal in order to accept multiple payment methods. Payments system cost can be pricey, especially depending on the nature of setup and hosting requirements.
Accepting digital payments can do wonders for your business’ working capital. Now more than ever before, businesses and organizations have the chance to leave excessive payment processing costs behind, and pay only fractional transaction fees, like gas to support the validation process. Remember the oversized hardware systems running power and business costs up?! Those expensive days are gone. Those extras used to be considered the normal costs associated with doing business, but the digital age is changing that completely.
Years ago merchants had to have POS systems that could cost upwards of thousands of dollars just for retailers to be able to accept different forms of money. Blockchain technology and cryptocurrency are helping to make these things of the past, and now blockchain payment processors like us at Pay It Now, are making it easy for merchants to save thousands on payments systems costs.
Big banks and companies using blockchain payment processing
Most people know that until a major enterprise enters your market, not many people will take you seriously. In the financial sector at least, all of the majors have come over to the blockchain with the rapidly evolving technology and many market verticals it has spawned - payment processing being one.
Major banks like Wells Fargo and HSBC have already begun using ledger technology in their cross-border closing processes. Goldman Sachs is one of the biggest proponents of stablecoin USDC, and believes all financial institutions should be looking at the blockchain to facilitate payments and other usage.
The Swedish central bank is still experimenting with their own digital currency, the e-krona, and is actively investigating how blockchain tech may be able to enhance finance. Earlier in 2021, JP Morgan disclosed they actively use blockchain technology to help improve their money transfer process, mostly due to the speed, accuracy and almost real-time reflected record on the blockchain public ledger system.
The large banks and firms are certainly present and using blockchain technology for money and technology related reasons. Large financial institutions and governments using blockchain tech and finding it safe, secure, fast and accurate enough to utilize it in official capacities, should give members of the public at least a decent degree of confidence in its ability to be a potentially better form of money, providing a superior payment process.
A rise in blockchain payments systems solutions
Cryptocurrency enabled blockchain payments systems have made a considerable impact across all business sectors, accounting for trillions in monthly transaction volume globally. The blockchain has made the way for cryptocurrencies to be used to purchase goods and services across pretty much all industries. The almost $6 trillion dollars spent on goods and services in crypto over last year provides documented evidence that individuals and businesses did in fact use more crypto in that capacity.
Blockchain payment processing doesn’t require much hardware at all to set up a safe, efficient platform where customers or clients can benefit from using blockchain technology to process crypto payments in exchange for desired goods and services.
Blockchain payments solutions have been rolled out by some majors on platforms like PayPal and Amazon, but hardcore Decentralized Finance leaders are piling into the front of the space so-to-say, making major innovative strides and setting new precedence throughout DeFi.
Majors like Meta - parent company of course to Facebook social media platform, need the scrapiness and organic development of tech and blockchain-centered companies like Pay It Now, in a pure desire to innovate and bridge our world into a better one somehow, by using blockchain science as a foundation.
Blockchain transactions and more on Pay It Now
The Pay It Now network has a battery of utilities built parallel with our blockchain-based loyalty program, designed as a more valuable rewards and loyalty program to help merchants and online retailers organically drive customer retention and loyalty spending. The Pay It Now model truly is a much needed disruption in the customer loyalty industry, but while PIN solutions does offer that, it still offers so much more.
PIN has had a unique process and therefore an accompanying unique rapid rate of development. The mission and vision did start out clear, but as the early days of the project kicked off, we learned so much and evolved so quickly because of our desire to comprehend and truly offer our community token holders and business clients something of value to be excited about. That almost always equates to utility. Go through the process of development to come up with real world answers to real world issues.
It’s not enough to just do cool things. We should strive to solve problems if we really want to build something of use. The blockchain is helping people all over the world to solve problems. These problems were unanswered and the solutions were distant as we were once subject to certain technological limitations, which stopped the growth process right in its tracks until the blockchain gave humanity passage. What the blockchain is providing the generations currently upon earth, is an opportunity to advance our world forward even more.
Payment processing is how the globe communicates - economics, money, commerce, business - it all equates to transactions, or the sending and receiving of currency as a store of value and method of exchange. Pay It Now wants to help businesses and individuals engage in better, more efficient ways of transacting and exchanging money and resources, and we are persuaded that the blockchain affords us that opportunity in abundance.
The blockchain has given us advances in payment processing, and we should all seek to be so courageous as to walk forward even more, to venture out further into the process and see what comes of it. We can arrive at a destination that sees faster, more secure, low cost, paperless payment and transaction solutions change our world for the better, even more.
The future of payment processing is on the blockchain
Blockchain payment methods processed by way of digital wallets using cryptocurrency assets, is expected to make up more than half of all combined global ecommerce transactions by 2023. That’s next year. Blockchain payments are expected to rise as banks and major institutions look to begin implementing digital payments into their normal payment infrastructure for customers and businesses to be able to process payments and transactions.
Digital transactions are becoming more heavily used for sure, and Pay It Now is positioning businesses to take advantage of the continued shift. It makes me think back on the introduction of cell phones, or the internet age - yes I’m old enough to remember that. When I think of those days I can remember some older individuals swearing up and down that they’d never revert to using the fancy new mobile phone devices. All they needed was their landline I can remember them saying, or at least something like that.
The same goes for the internet. I can remember people who swore they would never need to complicate their lives with such a cumbersome technological development which would eventually go on to change things forever and bring the world together through the environment of a computer monitor projecting sequenced lights in a way that allows our brains to read, process, and then transmit messages back and forth to and from one another.
The worldwide web has given way to online shopping, food delivery, social media, Google and everything with that giant, social media, FaceTime, Zoom and other video streaming services. I think I’m making my point clear enough. Don’t be like those people I remember hearing proclaim proudly that they’d stay in the past and resist the changes that everyone else would decide were too good to miss or pass up.
Pay It Now is making blockchain payment processing mainstream
The blockchain has given us access to something special. We’ve got access to something revolutionary and powerful with the blockchain and what it does for so much, but in this case - payment processing specifically.
Blockchain payment processing is faster, cheaper, more secure, technologically advanced, publicly recorded and accessible, global, peer to peer and trustless. Crypto payment processing on the blockchain is dependable enough for the biggest, most successful banks in the world today.
Pay It Now is doing everything possible to bring the masses to blockchain payment processing at a greater rate of adoption, until its mainstream. PIN is positioned in a space that has seen tremendous growth, while only expecting more. It’s exciting to think about all of the possibilities that lie ahead with blockchain payment processing and how it will continue to further change more industries and more communities globally, for the better.