With cryptocurrency fast becoming an accepted means of payment, the paytech must be grounded with solid foundations if it is to be adopted successfully.
This is an idea that is developed at length throughout this Weekend Read, which has been provided to The Fintech Times by René Pomassl, the CEO of Salamantex.
Salamantex is a fintech that enables merchants to accept payments for goods and services in digital currencies and choose to retain the payment in the digital currency or convert it into fiat.
René has been actively engaged in the blockchain sector since 2011 and founded Salamantex in 2017, making him well placed to speak around trends in cryptocurrencies.
Here, René discusses the use of crypto in payments, how their capabilities can be streamlined with the right software integration, and how they’re working to comply with international regulations.
Digital assets have now reached the stage where they are considered viable alternatives to fiat money. As such, we have seen the number of cryptocurrencies in the market proliferate, and these are slowly establishing themselves as a means of payment. For token owners, knowing how to reach the swathes of consumers waiting to explore the potential of crypto in payments can be hard. In reality, the key to success in ensuring adoption comes down to choosing the right software solution providers to get listed on as currency to choose from.
Gaining Mainstream Adoption
As with most customer journeys today, in payments people seek simplicity. The payments sector has seen a wave of innovation thanks to new technologies and is constantly evolving to deliver supreme levels of customer centricity and convenience. This ethos of customer convenience must be applied when making crypto available as a means of payment. For consumers, using a digital token to pay for goods and services needs to be as simple as ‘paying with a bank card’.
People also desire transaction speeds similar to, if not faster than, traditional payment methods. We are now living in a world where people anticipate near-instant transaction experiences wherever they go. If a consumer can pay with your token at speed and ease, they are likely to continue paying with the token for everything.
Equally important is security. Digital payment solutions need to be compliant with an ever-changing regulatory landscape. As the cryptocurrency industry is growing, governments are taking note and implementing stricter regulations. Those regulations in turn demand higher degrees of compliance and licence requirements.
Integration Is Key to Adoption
The key to ensuring your token moves from vision to real-world use is to integrate with software solution providers that have an existing network of merchants both offline at the point-of-sale terminals and online in webshops. Software that integrates seamlessly into existing payment infrastructures will allow a token to swiftly reach the relevant communities waiting to explore the potential of digital assets as a means of payment.
Partnering with the right software solutions provider will also determine to what extent the promises of simplicity, speed and security are delivered for consumers.
For prospective token creators, it helps to understand the challenges at play in the crypto market. Consumer appetite for crypto as a means of payment is not the issue – as it is clearly visible in the market. Rather, it is empowering merchants to be able to accept digital assets as a means of payment, and simply upgrading their payment systems to do so. Here, the importance of listing your token with a software solution provider that can seamlessly ‘plug into’ existing payment infrastructures becomes clear.
Luckily, these software solution providers exist today to enable business owners and e-commerce to accept digital and cryptocurrencies as means of payment and choose whether to receive the purchase price in conventional fiat currencies or directly in a cryptocurrency of their choice.
Future-Proofing Your Token
The regulatory environment around cryptocurrencies is constantly changing, and regulatory bodies are exercising closer scrutiny over the application of digital assets as they proliferate. For example, the SEC, the US Securities and Exchange Commission, has warned that cryptocurrency trading platforms cannot stay outside the US regulatory framework and will implement an additional framework soon. Being in line with current regulations is key to making your token sustainable.
Again, this highlights the advantage of partnering with an already established partner that works in line with regulators, to give customers the best possible protection, making it more likely for your token to be used for payments.
The digital asset journey has given rise to opportunities for tokens on the market, which can be successful if the aspects above are prioritised. That said, it’s important to remember that what’s true today, may not be tomorrow. Therefore, it all comes down to adaptability. Your token must work with the latest payment software, blockchain infrastructures, and regulations for your token to be successful.