Financial Technology – Fintech – is the new wave in the banking world. The era of using sophisticated machines to manage money is upon us. They’re more innovative, more efficient, and precise than humans.
From day trading to regular banking transactions, every financial activity now has a tech aspect. Traditional banks now have mobile apps with virtual assistants for their customers. There’s a more prominent platform taking fintech by storm – Cryptocurrency!
Cryptocurrency is next-level finance, and industry giants are riding this wave. Clients realize banking can be easier and less expensive with crypto. By 2021, it expanded beyond the innovative Bitcoin to Ethereum, Ether, and lesser-value coins like Dogecoin.
As with everything new and uncertain, traders approach fintech with caution.
B2B Pay offers exporters a means of receiving payment at low charges and without the red tape hassle.
What is a Blockchain bank account?
Since the inception of Bitcoin in 2009, Blockchain has become popular. What is it?
A blockchain is a record-keeping database. It stores information in groups called “blocks” and then seals it when it’s complete. New data coming in after the block fills up redirects to a new block. This block then attaches to the previous one. This process forms a chain of information hence the name Blockchain.
Although cryptocurrency popularized blockchains, it has other uses. Since its primary purpose is data collection, you can use blockchains to document ledger inventories and legal information. It has no single control, which makes it transparent to every user.
Data contained in a block is permanent, which makes it a reliable form of collection. To change anything, other blocks in the chain must accept it by a majority vote. They verify with the duplicates before allowing a change; if the new info doesn’t check out, the blocks reject it.
There’s no doubt that Bitcoin and blockchains are taking over the fintech space. This fact doesn’t mean we’ll use it for everything just yet. It only passed the ten-year mark in 2019; this doesn’t make it a mature technology.
The technology behind ETH, Ethereum is a digital currency. It’s easy to access because it requires only an internet connection to open an account. The app doesn’t request users’ personal details during sign-up. A transaction with Ethereum is direct and decentralized.
Ten reasons why use blockchain bank account
1. Bitcoin provides swift transactions
You can send money at the speed of light with Bitcoin. A significant challenge people face banking the traditional way is delayed transactions. Weekend transactions are often a nightmare because you have to wait till Monday to confirm. Worst case scenario is when the next working day is a public holiday.
Transferring Bitcoin and other cryptocurrencies doesn’t take long. You will get your confirmation within minutes. Traditional banks shy away from this form of transaction because it’s uncertain. They’d prefer to stick to what they know and have you wait for 24-48hours for a confirmation.
One of the fantastic features of Bitcoin is the transfer from Blockchain to a bank account. It doesn’t matter that you’re transacting business with a traditional banker. Alternative platforms include Nuri, and SatoshiPay, amongst others.
2. Advancing with the times
Bitcoin is more popular than when it first arrived 12 years ago. It has proven to be a reliable way of banking with fewer charges. More people prefer to use crypto for large transactions.
For instance, PayPal charges about 30 cents for a €1 payment. A 30% charge hardly seems fair! Small businesses often struggle with money; the owners shouldn’t have to deal with high bank fees.
Admittedly, the fact that Bitcoin doesn’t have central control leaves room for illegal transactions. That’s not to say that’s all there is to it. Even traditional banking has loopholes
3. Corporate use of blockchains: Bitcoin, Ethereum, and Ripple
Anyone who hears crypto immediately thinks Bitcoin. Did you know there are other types like Ethereum and Ripple?
Ethereum is a blockchain with its currency, Ether (ETH), and unique programming language – Solidity. It’s the second in market value after Bitcoin. Ethereum users have to pay fees “gas” to use distributed Applications “dApps”.
The founder said it was built for smart contracts and separated itself from Bitcoin because it’s programmable.
Ripple’s currency XRP confirms transactions in seconds at a low cost. It’s famous for its digital payment network and protocol. It’s little wonder that many banks use XRP as a payment system. Its speed and low charge distinguish it from Bitcoin
4. Blockchain security
At B2B Pay, our priority is securing our clients’ money. We offer transactions with European IBAN accounts. We do that with secure existing technology.
Our technical team tested the financial technology to ensure security. We’ve estimated possible failure to be two orders of magnitude less. Pending a foolproof system, B2B Pay would stick to offering virtual bank services.
5. You can enjoy wholesale currency rates.
Conversion rates can get annoying when you have to change small amounts of money. It’s a challenge for clients who trade in foreign currency. B2B Pay offers wholesale rates regardless of the amount you have.
The spread costs for trading large amounts in liquid currencies can be as low as 0.0001%. Fees increase by 3-6% when a bank transfers small amounts of money. At B2B Pay, we offer you services Bitcoin can’t cover.
Catering to startups is one of our strengths as over 50% of our customers are newly registered businesses. We want to grow with you, so we’ve prepared resources to aid your expansion.
On a low scale, banks employ blockchain technology but aren’t ready to fully commit to it. We participated in Nordea bank’s accelerator program in Helsinki and started working with Barclays powered by Techstars.
Both banks accept blockchains and Bitcoin startups but hedge their funds. They hardly invest more than $2m for ten startups in 3 months. This amount is contrasting with the $10m+ they invest in internal projects.
6. Interrelation among banks
As a business owner, you can rest assured of banking with B2B Pay. We understand the importance of paying staff, suppliers, and bills in general from a company account. Blockchain transactions are suited for personal transactions, not corporate ones.
You cannot bypass the system of banking fees and regulations when you transact across currencies. 99.9% of businesses deal in real currency using traditional bank accounts, for instance, paying from a Euro account in France to a Yen account in Japan.
Although we’re capable of making bulk payments in blockchains, we don’t use Bitcoin. You can, however, rely on platforms like Satoshipay to make micropayments with Bitcoin. Attempting such a transaction poses a challenge greater than basic regulations.
SatoshiPay guarantees security by using a multi-signature system to sign in. They offer low-cost international services and are transparent. The requirements to open an account are essential to make it accessible to all. There’s a periodic upgrade to ensure client satisfaction.
7. Easy currency conversion
We’re changing the game when it comes to switching from international currencies to BTC and vice versa. You cannot escape the extra cost of converting blockchains to real money. We’re, however, working to reduce that fee.
B2B Pay receives and stores multi-currencies with a single Europe IBAN. The fact that Bitcoin is not liquid makes conversion a bit complex.
8. Hedging currency fluctuation risk
Foreign exchange is uncertain because of the fluctuation in currency value. It is a risky venture to trade with low currencies like the Nigerian naira and Indian rupees. For instance, you can lose vast amounts of money making such a trade – from USD to BTC to EUR.
There’s hardly a way to manage a conversion with bitcoin in between. The market price wouldn’t wait for you to complete a transaction chain before moving up or down.
In theory, it makes sense to run transactions simultaneously, but the reality is not the same. You have to convert to BTC first before the other currency. For instance, you can start at 1USD and finish at 1.2USD. At the moment, we don’t see how you can hedge without taking this risk.
Fact: Over $3 trillion is traded daily, whereas BTC value per day is $100 million.
9. Customer-centric services
Our clientele is primarily small-scale and startup business owners. These people already deal with stressful daily activities; the last thing they want is an unreliable bank. They want assurance that their money is there when they wake up in the morning. This group is wary of adopting new technology.
Taking these fears into consideration, we built a simple and interactive interface. We want our customers to bank with ease. We’re getting there, but it’ll take a long time for businesses to trust alternate currencies that they can’t touch
10. Risk management
In ensuring secure transactions, B2BPay banking works more cautiously than the consumer’s space. We test and confirm new technologies before introducing them to mainstream businesses. It’s the reason we tread lightly on the blockchain space.
There are so many unanswered questions and not enough cases of real-world use. The moment we see the majority embracing blockchain technology, B2B players would consider it as an alternative.
When did we start considering Bitcoin or blockchain?
Apart from the accelerator programs inside individual banks, banks are also joining forces through consortiums such as R3. Given all this money and effort going into these technologies, there will likely be a moment when banks and other financial institutions switch over from legacy systems. Obviously, we will consider switching over to the blockchain as well -- or we may in fact have de facto switched already!
Blockchain: Reducing transaction costs?
So far, Blockchain is proving to be a formidable player in reducing transaction costs in the banking industry. Trust is the foundation of every relationship, especially in business involving money. It has the potential to simplify ledgers in international trade where the parties are strangers. It’s an undeniable fact that Blockchain is hot! We, however, can’t go in blind just because we want to ride the wave.
We need to answer the tough questions! What are the incurred costs that makeup 3-6% of transaction fees? Which is more critical – improving the transaction process with Bitcoin or automating currency conversions and regulatory approaches?
Here’s a breakdown to help you understand;
B2B Pay’s wholesale rate is about 0.055%. The remaining 95% comes from regulations, processes, conversion, and BIG profits. So, to send €10,000 from Finland to China, B2B Pay charges about €5.5.
Our present focus is automating currency conversions and regulatory processes to cut down that 95%! Ledger process improvement can come later. We have a payment solution for our exporters – a virtual bank account in Europe. Sign up today to enjoy the best transaction fees.
We look forward to piggybacking off Earthport.com – a startup working on improving international payment – rather than inventing a new platform. Their technology would make cross-border transactions simple, fast, and cheap! There’s no point in duplicating effort when we can render support.
The future: B2B Blockchain
We are ready to take up the challenge of banking with Blockchains. We recognize that it’s forging its path in fintech and would soon become a staple. In preparation, we built our business system to adapt to Blockchain when the time is right. Sometime in the nearest future, we will offer B2B Blockchain payments. For now, however, our environment doesn’t cater to it. Read more about Blockchain Payment Processing here.
What is B2B Pay?
B2B Pay provides online bank accounts and all necessities for companies such as a crypto-to-fiat payment gateway tool that collects over 20 cryptocurrencies and converts them to fiat. We offer fast transactions such that; you can convert to Euros at market price on a single interface.
To open an account, you need proof of business in compliance with the Know Your Client – KYC rule.
Bitcoin to Bank
Bitcoins are kept in electronic wallets, and it is quite a hassle to get hard currency deposited into your bank account. This problem stems from the fact that most banks don’t want to deal with bitcoin exchange funds.
In the meantime, there’s no easy alternative in the market for seamless transfer from e-Wallet to IBAN. The only viable solution is to use a virtual bank account with IBAN like B2B Pay. Then, you can connect both in a single interface.
For example, depositing Euros into your virtual bank account automatically syncs with your e-Wallet. You can get your Euros back in a simple transaction.
Three easy steps to deposit Bitcoin into your bank account
- Open an account with B2B Pay
- Go to your settings and connect with your e-Wallet
- Perform the transaction
B2B Pay does all the technical work behind the scenes. All you need to do is open an account and transact business.
One challenge banks face with the KYC policy is replication. Simply put, banks miss business opportunities because they can’t verify the authenticity of their prospects! It is a business pain point that costs money and delays the onboarding process.
That is where IBAN comes in to save the day. A user can attach KYC information to it. Banks can now ping an IBAN with a small deposit to verify banking and financial information – PEPs and sanctions. You get the warranty back upon confirmation.
IBAN can potentially revolutionize the KYC industry for users. No more relying on multiple manual checks – that can go missing – for approval. Businesses also save money from the reduction in cost per conversion to cents from dozens of dollars.
If any of us could see the future, we would’ve made a $10,000 Bitcoin investment worth millions today. Just like foreign currencies, Bitcoin pricing varies based on market forces. It can rise and fall within seconds.
You can track the price fluctuation on any of the many Bitcoin blogs and news aggregators. Binance, Coindesk, Coinbase, and Bitcoin.com are popular ones with the tools for this. Use search engines like Google, Bing, and Safari to find them. These sites display information like stock market graphs on a strip so you can monitor your investments in realtime.
In the same way, you have a purse to keep your hard currency; the Bitcoin wallet holds your Bitcoin keys. It’s a bank account for a virtual currency where you can make transactions in crypto. One of its advantages is that it contains multiple keys like a keychain.
There are two types of e-Wallet;
- Self-installed: You install the keys yourself on your computer. It’s more secure than the other because you handle it personally. The setup and maintenance can be tasking, though.
- Third-party installed: A third party on the internet is the host. It’s insecure because this person collects your information to set it up. Ensure you do due diligence before selecting your provider if you choose this route.
You can hold your Bitcoin wallet as a physical device that looks like a USB key. It’s also available as a mobile application version. Search for your crypto wallet system on any app store – try Google play or Samsung store.
A Bitcoin exchange is similar to a traditional bank. It transacts Bitcoin peer-to-peer in a massive ledger with fiat currencies. With this feature, you can pay using conventional banking methods – credit and debit cards, wire transfers even other cryptocurrencies! It also accepts major currencies from Euros to USD to Yen and more.
Multiple bitcoin exchanges in multi-currencies are similar to traditional bank transactions. They communicate and deal according to the local market value of the fiat currency in play.
Bitcoin credit card
It is a Credit card that accepts Bitcoin transactions. It can be a Mastercard, Visa, or any other type that lets you pay anywhere with Bitcoin. Say goodbye to being stranded on a shopping spree. Few companies offer this, and they vary in features and fees.
Some companies issue virtual cards for online shopping only and debit cards for retail outlets. They are international, so they’re not restricted to particular countries. You can get your card through the mail from anywhere in the world!
An interesting feature of Bitcoin is that it doesn’t need ID verification for limited transactions. Users who cherish their privacy can enjoy easy transactions anytime.
Blockchain to Bank Account
Holding a financial stake in the Blockchain with a cryptocurrency of any kind requires knowledge. You have to master your skill with constant practice. The ideal way to transfer money from a blockchain to a bank account is through an IBAN connection.
Linking your accounts with IBAN means you have instant access to the fiat currency exchange value. You can convert any amount of cryptocurrency into cash for instant use!
How to Open a bank account in Europe
We have a few guides to see you through the process of opening a bank account in European countries. The formula is similar across the continent, which explains why a B2B Pay virtual bank account is a better alternative. We offer better rates for transactions outside Europe.
- 1. What is a Blockchain bank account?
- 2. Bitcoin
- 3. Ethereum
- 4. Ten reasons why use blockchain bank account
- 5. When did we start considering Bitcoin or blockchain?
- 6. Blockchain: Reducing transaction costs?
- 7. Here’s a breakdown to help you understand;
- 8. The future: B2B Blockchain
- 9. What is B2B Pay?
- 10. Trading Bitcoin
- 11. Bitcoin to Bank
- 12. IBAN
- 13. Bitcoin price
- 14. Bitcoin Wallet
- 15. Bitcoin Exchange
- 16. Bitcoin credit card
- 17. Blockchain to Bank Account
- 18. How to Open a bank account in Europe
How to open a bank account in Europe
We have a few guides to guide you through the process of opening a bank account in multiple European countries and explaining why a virtual bank account with B2B Pay may be a better alternative if you are transferring money outside of Europe and taking advantage of a better rate.
- How to open a bank account in Andorra
- How to open a bank account in Austria
- How to open a bank account in Bulgaria
- How to open a bank account in Croatia
- How to open a bank account in Czech Republic
- How to open a bank account in Cyprus
- How to open a bank account in Denmark
- How to open a bank account in Estonia
- How to open a bank account in Finland
- How to open a bank account in France
- How to open a bank account in Germany
- How to open a bank account in Greece
- How to open a bank account in Hungary
- How to open a bank account in Ireland
- How to open a bank account in Italy
- How to open a bank account in Latvia
- How to open a bank account in Liechtenstein
- How to open a bank account in Lithuania
- How to open a bank account in Luxembourg
- How to open a bank account in Malta
- How to open a bank account in Monaco
- How to open a bank account in the Netherlands
- How to open a bank account in Norway
- How to open a bank account in Poland
- How to open a bank account in Portugal
- How to open a bank account in Romania
- How to open a bank account in San Marino
- How to open a bank account in Slovakia
- How to open a bank account in Slovenia
- How to open a bank account in Spain
- How to open a bank account in Sweden
- How to open a bank account in Switzerland
- How to open a bank account in the UK
How to open a bank account overseas
We have a few guides to guide you through the process of opening a bank account in multiple countries all over the world and explaining why a virtual bank account with B2B Pay may be a better alternative if you are transferring money outside of Europe and taking advantage of a better rate.
- How to open a bank account in Australia
- How to open a bank account in Brazil
- How to open a bank account in Canada
- How to open a bank account in the Cayman Islands
- How to open a bank account in China
- How to open a bank account in Colombia
- How to open a bank account in Dubai
- How to open a bank account in Hong Kong
- How to open a bank account in India
- How to open a bank account in Japan
- How to open a bank account in Malaysia
- How to open a bank account in Mexico
- How to open a bank account in New Zealand
- How to open a bank account in the Philippines
- How to open a bank account in Russia
- How to open a bank account in Singapore
- How to open a bank account in South Africa
- How to open a bank account in South Korea
- How to open a bank account in Thailand
- How to open a bank account in Turkey
- How to open a bank account in the United States
- How to open a bank account in Ukraine