Why Fiat Gateways are Important to the Crypto Industry
In the world of finance and business transactions, payments will always remain a vital aspect of the ecosystem that makes it thrive. Think of payments as the heartbeat of business transactions. According to Statista, total transaction value in digital payments is projected to reach US$8.49tn in 2022.
All of these payments are possible due to the seamless integration of a financial technology known as a gateway. A gateway is simply an access point for in-and-out transactions. Without gateways, it will be difficult for businesses to receive payments, and for clients to make payments for goods and services.
Why fiat gateways are important
Fiat gateway enables you to make payments with your local currency online, via cards, etc., it essentially connects a bank account with the payment system. The fiat protocol or system makes it possible for payments made using bank cards and electronic wallets to be verified and processed, resulting in these transactions being accepted or rejected. With an ever evolving world any transaction that does not involve cash can be classified as a digital transaction.
Despite growing interest in crypto payment gateways which allow you to use your crypto to make payments for regular items/products and services. There is still a long way to go despite a steady rise of interest in it as a payment tool - according to the Demystifying Crypto report, 39% of consumers believe cryptocurrencies should be used for payments, not just investments.
Advantages of Fiat Gateways in the Crypto Industry
1. Numerous Channels
Because of the maturity of the fiat gateway system, there are numerous channels that exist in the fiat payment infrastructure. We have credit/debit cards, bank transfer, e-wallets, OTC, P2P, ATMs, etc. Why these numerous channels are important is that it allows the users to easily buy crypto in the channel they are most comfortable with.
2. Convenience
With already existing payment rails that readily process millions of transactions on a daily basis. Right now, it is more efficient to use fiat gateways to buy crypto.
3. Highway to mass adoption
In what other way will a newbie in crypto buy crypto. He probably doesn't have any means of doing so other than using his/her fiat or local currency to buy crypto on an exchange. With only 5% of the global population actively involved in crypto transactions it is fair to say there is still a long way to go and fiat gateways offers the funnel to enable the remaining 95% of global population adopt cryptocurrency.
4. Security
With many years of real world examples across ecommerce, etc. Fiat gateways are battle tested and have the highest security standards when it comes to payment.
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