The Evolution of Currency is Taking Place
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With the many bottlenecks - technical and regulatory - currently in place, companies around the world are hesitant to begin accepting cryptocurrency. Many companies and merchants do not want to be exposed to the risks associated with crypto. However, even if these businesses do accept crypto, they would lose a percentage in the conversion to fiat due to exchange fees and other issues that have yet to be ironed out.
Reasons for Merchants not Accepting Crypto For Payments
There are many reasons why merchants do not accept crypto as a form of payment. Crypto is still a relatively new movement in the world. Naturally, this means that there will be some entities that are slower than others when it comes to adopting it. The barriers to entry include technical difficulties, high fees, and risk exposure.
However, if crypto is really set to be the next step in the evolution of currency, merchants and consumers need these obstacles to be overcome. Fortunately, crypto startups are developing solutions, with projects such as Alchemy Pay leading the way.
What is Alchemy Pay?
Alchemy Pay is a payment consensus protocol aiming to provide businesses the ability to accept crypto without the typical drawbacks. Through its hybrid crypto-to-fiat gateway, Alchemy Pay is able to offer a tailored solution to merchants and buyers globally.
With over 300 payment gateways and infrastructure already supported in 65 countries, Alchemy Pay enables businesses to accept cryptocurrencies from their paying customers without dealing with the crypto themselves. If a customer pays in crypto, Alchemy Pay converts that crypto to fiat - simple.
After onboarding, businesses can accept a crypto-to-fiat payment in both business-to-customer (B2C) and business-to-business (B2B) payment scenarios. When the buyer pays in a supported crypto, the assets are converted to the fiat currency that the seller has selected when joining the Alchemy Pay network.
The network facilitates both offline and online transactions. For offline transactions an iOS/Android app that can be used that runs on an android based payment terminal that is already commonly used by merchants, meaning that they will not have to purchase a new terminal. Or transactions can be directly accepted via iOS mobile devices or Android mobile devices. For online transactions, the business will integrate with the Alchemy Pay API or online payment gateway.
These processes help the merchant accept a combination of fiat, such as fiat mobile wallets, and crypto from any crypto wallets for onchain transactions and centralized wallets such as Binance Pay and Crypto.com Pay.
Fees and the ACH Token
Users within the Alchemy Pay ecosystem can take advantage of the platform's native ACH token. Every transaction rewards both the customer and the business in ACH token, which is used to pay transaction fees within the Alchemy Pay platform. The token incentivises the use of the payment network and brings value to the token as it is needed to conduct these growing crypto-to-fiat merchant transactions. Furthermore, the token is easy to trade thanks to its availability on various exchanges, such as Coinbase and Huobi.
On a deeper level within the Alchemy Pay ecosystem, merchants are considered nodes within the platform's merchant node network. Each transaction distributes a specific amount of ACH based on the number of participants within the said transaction, rewarding network participants and circulating the token's value back to end-users.
Over time, ACH will be harder to acquire, creating scarcity that could lead to an increase in the token's value with constant or growing demand. However, Alchemy Pay plans to build its customer ecosystem by incentivizing businesses to acquire ACH with various transactions. While rewards might be harder to gather over time, ideally, they'll be more valuable as ACH becomes more scarce.
The Next-Gen Crypto Payment Solution
Alchemy Pay aims to build the next evolution of currency with the project's transaction incentivization alongside its user-free conversion methods. Not only will customers be free to spend in any manner they prefer, but businesses can also convert those payments to currencies they prefer, creating an ideal payment solution for all.
Ideally, such a process will move the cryptocurrency industry beyond just speculation and, over time, will lead to more businesses accepting crypto as a means of payment.