How fiat payment processors can increase the number of supported currencies and avoid volatility

The interest in crypto is growing worldwide, and thus, the use of digital assets is expanding continuously. Between 2016 and 2020 only, the number of crypto users grew by 190%.

Since then, this value has quadrupled. It, in turn, impacts the development of fiat payment processing services and the growth of their popularity as they enable fiat-to-crypto purchases.

Limitations Imposed by Fiat Payment Processing Services

When purchasing crypto, users face some major limitations that make the service significantly less convenient than one can expect. Among the most bothersome inconveniences are the following:

A limited number of supported assets (both fiat and crypto);
A long time is needed to confirm a transaction;
High transaction fees, and so on.

All these issues (or at least the major ones) can be solved efficiently by integrating some of the LetsExchange functionalities. Let’s have a look at how it can be done.

Expanding the Number of Supported Assets

An integration with LetsExchange allows a fiat payment provider to expand the number of supported assets by adding all the 4,000+ coins and tokens or pick those assets that match its purposes. It will help to expand the target audience by including all those who are interested in rare coins, too.

Eliminating the Volatility Issue

By integrating with LetsExchange, a fiat payment provider may eliminate the volatility risks to its users.

How does it happen?

Let’s check a case when a user wants to buy Monero with Euro.

The fiat payment provider receives the supported currency (EUR in our example) from a user, buys with it a supported stablecoin (USDT, for example), and sends this coin to our service to proceed with the swap to XMR at a fixed exchange rate.

We exchange USDT for XMR and send XMR to the user’s wallet.

The thing is that if a user buys crypto for fiat through a fiat payment provider, the exchange rate may change significantly during the exchange because the time required to process a transaction with fiat is usually long. However, considering that the exchange is performed via swapping to a stablecoin first, and then, this stablecoin is sent to LetsExchange to complete the exchange, the volatility is eliminated.

Additionally, integration with LetsExchange will enable a fiat payment provider to expand its target audience by including those users who are interested in buying rare coins or coins that focus on anonymity such as ZCash or Monero.

With it, fiat payment providers also get an opportunity to attract more traffic from expanded SEO options. They will be able to advertise purchasing much more coins with fiat than their competitors, therefore, it can help them to move to the top in search engine ratings for those assets that the competitors do not support.

Additional Benefits

Along with the main benefits, fiat payment providers can count on the following additional pros.

Speeding up the Time Needed for an Exchange

When a user buys crypto with fiat, it may take time because some blockchains, Ethereum, for example, may be very slow to verify a swap. Thus, the exchange rate can change so that both the user and the fiat payment provider may bear losses.

We can start processing a swap after the first confirmation and send the exchanged funds to the wallet of the user before the actual transaction is confirmed on a blockchain. That’s why the transaction processing time is much faster than the time that most fiat payment providers need to process an exchange.

Integration Reduces Expenses on Funds Verification

LetsExchange performs AML checks for all coins that are submitted for swaps. Therefore, a fiat payment provider can skip this process because, through the integration, they get clean funds only.

Offer Crypto-to-Crypto Swaps

Once a fiat payment provider integrates with LetsExchange, it will be able to offer its users crypto-to-crypto swaps with LetsExchange’s solutions.

Conclusion

Integrations with LetsExchange allow fiat payment processors to get more competitive benefits compared to those providers who do not work with us such as:

More coins, including anonymous coins
Elimination of volatility
A faster processing time
Reduction of expenses for AML checkups, among others
Offering crypto-to-crypto swaps.

LetsExchange is open for collaboration. If you believe that we can be mutually beneficial for you, please contact our team to discuss details.