A reliable payment partner is the key to scaling your business.
Imagine if fiat and digital currencies successfully co-existed. In this case, consumers would be free to use any money and merchants seamlessly accepted it. This reality is not that far off since the essential payment infrastructure is already in the making.
Today, if a non-crypto business wants to start processing payments in digital currencies or a crypto company decides to accept fiat, they will face a number of challenges. In fact, setting up payment infrastructure and choosing the right partner can define the success of a business.
There are a few points to consider before jumping into any cooperation.
Why does your business need to accept payments in cryptocurrency? Over 60% of crypto holders admit they are very interested in using digital currencies as a payment method. Besides, crypto-powered transactions are faster, cheaper, and more transparent than their fiat counterparts. After all, if there’s a new payment method that will bring you many new customers, why wouldn’t you use it?
However, dealing with crypto will put your company in the hot spot and attract additional attention from regulatory authorities. The necessity to comply with strict AML/KYC rules, design special policies, and advance your risk management department is only the tip of the iceberg. Make sure you research all the requirements before setting the wheels in motion.
Setting up an anti-fraud system to protect your business and your customers is a must. Apart from checking credit cards for theft, you need to verify your customers and conduct an Enhanced Due Diligence in some cases. Moreover, different regions require verification checks, especially when dealing with crypto transactions.
Setting up your own risk department is a costly affair, and it’s often more reasonable to choose a partner that takes care of it. Mercuryo is one of the few payment providers using a native anti-fraud cross-channel platform to detect fraudulent transactions designed to ower risks while increasing conversion. A native solution is not a requirement, but make sure your future partner does take care of the risks on their side.
Supporting Local Currencies and Payment Methods
Believe it or not, not everything circles around Visa and MasterCard. For example, regions like South-East Asia or Latin America are not used to credit cards in the first place. Their local payment methods are faster, cheaper, and often more convenient.
If you plan on going global with your business (and if not, you should, at least, consider it), make sure to allow payments in local currencies and make arrangements with local payment providers. You can either do so yourself or collaborate with a partner with an extended network.
Merchants who want to work with cryptocurrency need to monitor the regulatory agenda constantly. The legal framework is still a work in progress, and new rules come out daily. You’ll have to be ready to change your workflow accordingly quickly. It’s not unusual for a country to ban all kinds of crypto transactions in a blink of an eye.
The onboarding process is arguably the most challenging part with many intricacies. For example, Mastercard asks to prepare legal opinions for each country the merchant plans to operate in, confirming that it is legal. That’s why delegating legal issues to your payment provider is probably an excellent idea.
Nobody likes chargebacks. Typically, the maximum amount of chargebacks shouldn’t exceed 1%. If your business surpasses this number, your acquiring bank can refuse to work with you further. The good news is that cryptocurrency transactions are irreversible. You won’t have to worry about chargebacks when working with a payment provider that commits itself to deal with this issue.
As a merchant, you will realize the real potential of your new payment provider once you start working together. An ideal partner will research the market and adapt their products according to your business needs. They will act on your requests asap and do their best to understand your business to offer the solution that will contribute to scaling your business.
The Bottom Line
If your business has global ambitions, the fastest way to achieve this goal is to partner with a reputable payment provider that will give you access to a solid payment infrastructure and offer the best-fitting solutions in different parts of the world. And that’s where cryptopowered payments are coming in handy.
Ideally, you would want your partner to take care of the legal issues and risk management while providing fast, cheap, transparent payment options and exceptional aftercare.