Blockchain and cryptocurrencies are revolutionising how we do business and, in fact, the entire financial ecosystem in the world. Africa is not being left behind and is embracing the crypto wave that is shifting businesses’ dependency on traditional financial institutions. An African blockchain payments startup Basqet has rolled out a crypto payments processor that will make it possible for businesses to be paid using crypto.
Before the launch, Basqet said they had already successfully handled transactions worth $1.3 million with several businesses. The crypto startup launched its payment gateway with 118 businesses already registered and set to receive payments in cryptocurrencies such as Bitcoin.
Some companies or businesses may have a problem with receiving cryptocurrencies as payments. A crypto payment gateway is a processor for digital currencies and will make it easier for a business to sell its goods or products and get paid in Bitcoin or other cryptocurrencies. Many crypto gateways offer more payment options, where businesses can accept digital currency and receive fiat currency in the exchange platform.
Payment gateways or processors use their crypto wallets to ease transactions between customers and businesses/vendors. In simple terms, the gateway company takes all the risks of using cryptocurrency for payments. The main fear deterring businesses from accepting crypto is the high fluctuation risk. If a cryptocurrency loses its value, businesses fear that it will experience huge losses. Basqet’s Senior Product Manager Bunmi Eleshin said that the company would create a link between businesses accepting crypto payments and cryptocurrency holders, making it easier for people to shop and pay for products & services using crypto.
To deal with the price fluctuations problem, Basqet said that it allows merchants to accept crypto as payments. The company will settle the payment in US dollars, cryptocurrency, or more than 5 African currencies available. For example, suppose a merchant or a vendor sells a product for $50. In that case, they will receive a similar value in any currency they prefer without worrying about price fluctuations in cryptocurrency. The company noted that merchants using its payment gateway could accept various cryptocurrencies such as Bitcoin, Ethereum, Lite coin, and USDT. Other cryptocurrencies are expected to be added soon.
Businesses that will sign up for Basquet’s payment gateway can accept crypto using the following ways; using a payment link, payment button, or Basqet API. The company added that it only takes 10 minutes to sign up and get a payment link that businesses can send to their customers using platforms such as Whatsapp. One of the key advantages of using payment gateways is that, as a business, you don’t necessarily have to understand cryptocurrency because the gateway offers you the ability to accept crypto as payment and receive fiat currency.
Secondly, gateways enable merchants to receive payments from any part of the world and in any cryptocurrency. Cryptocurrency is a relatively new concept for many businesses; many may be suspicious, and understandably, businesses and merchants may shy away from using crypto as a form of payment. Businesses can use crypto payment gateways to receive payments in fiat currency while allowing their customers to use crypto to pay for products and services.