Integrating digital payment solutions can significantly enhance a crypto brokerage’s market opportunities by improving customer experience, expanding reach, and reducing operational costs. If you are reading this we believe you understand the concept, importance, and benefits of integrating digital support for your crypto brokerage. You are probably considering integrating digital payment solutions for your crypto brokerage.
In this publication, we will discuss the importance of digital payment solutions, their benefits, and key factors to consider when integrating digital payment solutions for crypto brokerage.
The Need for Integrating Digital Payments Solutions for Your Crypto Brokerage
Today’s customers are more accustomed to using fast, easy, and safe payment methods at the end of a sale. As such practice keeps on intriguing more users, digital payments have become the identification of business activities. The availability of multiple digital payment systems is important for crypto brokerages since their customers have a diverse range of preferences and needs.
Benefits of Digital Payments for Crypto Brokerages
Crypto brokerages are a dynamic payment system overall and these are the key benefits of digital payment systems for crypto brokerages;
- Better customer service: There are quicker transaction times, less paperwork, and more ease of carrying out transactions. As a result, customers tend to be more satisfied and loyal.
- Expanded reach: If brokerages were to accept a broad array of digital payment options, it would allow them to reach customers from various areas and demographics. This can help them expand into new territories and enhance their total revenues.
- Reduced operational costs: These methods often carry a tremendous transaction fee, a need for human resources to process these transactions, and a greater potential for fraud. DigiPayments can help improve such transactions by decreasing associated expenses and enhancing business processes.
Key Factors to Consider When Integrating Digital Payment Solutions for Your Crypto Brokerage
Digitization of payment has become necessary in doing business. However many crypto brokerages fail to follow through and implement appropriate measures in the process. Below are five (5) factors that must be considered;
- Security: Confidentiality of information and criminal activities for instance fraud are very sensitive issues within finance. Whenever a payment solution is selected, it is recommended that end users analyze the features of certain payment solutions such as encryption, tokenization, and multi-factor authentication.
- Compliance: Maintaining a good reputational business comes with complying with rules such as KYC and AML. It is advisable to ensure that the payment solution will comply with all aspects of the law.
- Functionality: The payment solution shall service currencies in the form of cryptocurrencies as well as cash currencies that your brokerage handles. Also, this would mix well with the current brokerage systems to avoid interruptions and ensure efficient productivity.
- Scalability: Take into account how much you expect your business to grow and ensure that the payment method/processing does not limit the volume of transactions completed on it.
- Cost: Analyze the transaction costs, payment charges, installation costs, and operating costs related to particular or various payment solutions. You can also do a cost-benefit analysis and recommend the least expansive option for your brokerage.
Popular Digital Payment Solutions for Crypto Brokerages
There are various digital payment options available for crypto brokerages. Each of the payment options carries some pros and cons as seen below;
- Traditional payment gateways: PayPal, Stripe, Dutch payment company Adyen and many other similar gateways are emerging payment platforms with a myriad of payment capabilities. However, the use of such systems has its downside especially if a firm decides to work with cryptocurrencies across borders and does not accept higher fees for each transaction carried out.
- Payment processors for cryptocurrencies: There are also solutions for payment processing in the form of digital currencies like CoinBases, Commerce or BitPay where merchants connect their online stores and receive payments in cryptos and often face affordable rates.
- Decentralized Finance (DeFi) protocols: DeFi also includes protocols such as Uniswap and Aave which allow users to perform direct transactions without the need for a mediator. This would help reduce costs as well as increase transparency in transactions however it can also come with higher technical challenges and threats to security.
