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CoinMarketCap (CMC) has implemented a fully automated digital currency payment solution from the Gilded financial network.
Neal Roche, Gilded’s Chief Operations Officer (COO), told Cointelegraph that the automated approach has solved many problems currently facing crypto billing and payments:
“Most companies, when they start accepting cryptocurrencies, they basically have this manual process that they have to go through: tell the customer what the wallet address is, keep rotating those addresses and then if you have a bunch of invoices and group of customers , you have to reconcile if they paid in full. “
Use of stablecoins to limit volatility
Roche said there was a five-step process. Whenever a Coinmarket representative marks something as “ready to pay,” the system automatically generates and sends an invoice offering the customer a variety of payment options, including cryptocurrencies and credit cards.
For example, if CMC sold one of its APIs for basic commercial use, the system would issue an invoice and the company could send the payment in cryptocurrency. Once received, the Gilded solution can automatically convert it to a stablecoin to reduce volatility. Supported stablecoins include USD Coin (USDC), Dai (DAI), Tether (USDT), and Binance Stablecoin (BUSD).
Payments can then be exchanged for USD and transferred to a bank and the accounts are actually settled. Roche said the system helps demystify crypto payments for traditional businesses:
“This is where traditional companies that fear cryptocurrencies can now have the tools to manage digital payments and custody without their staff requiring in-depth knowledge of crypto.”
Not all companies are set up for encryption
A survey from October 2019 showed that only about a third of small and medium-sized businesses in the US are willing to accept cryptocurrencies as a payment. The Gilded solution can be used by companies that are not prepared to manage portfolios or be custodians of digital assets such as BTC:
“We are allowing CoinMarketCap to generate invoices and customers can decide whether they want to pay in cryptocurrency or pay with traditional payment channels like credit card or wire transfer. And then when the customer pays, it doesn’t go to a wallet or a staff member. Go to an exchange, a keeper. “
Cheaper and faster
Typical transactions such as credit card payments and bank transfers can take 1-2 days to process, with merchants being charged anywhere from 2-5% commissions. Roche explained:
“There are ecommerce solutions like BitPay and CoinPayment, but this is more for larger payments, like business-to-business (B2B), where you send thousands of dollars and don’t want to use credit cards for it when making cross-border payments. “
Gilded said that in one case study their system had actually delivered 96% faster digital transactions with a 75% reduction in fees.
