A payment processor is a company that authorizes payments on behalf of individuals to companies. For example, a payment processor processes a credit card transaction and a company gets paid minus the processing fee shared between the credit card company and the processor. What you get in return is convenience, security and the ability to pay anywhere in the world with one single mode of payment which in this example is the credit card.
Payment processors are hesitant to accept payments with blockchain based cryptocurrencies such as bitcoin because of both market fluctuations and the risk related to fraud and money laundering.
Still, it is possible to accept bitcoin for products offered online and in points of sale and there are many companies that offer bitcoin payment processing securely and that automatically convert the payment into the currency of your choice.
Blockchain payments solution
The ability to perform business payments or offer blockchain payment solutions for companies is the real of few technology startups usually confined to the fintech space. There are multiple business models offering these services including currency conversion, investment and remittance between fiat currencies and cryptocurrencies.
The currently available technologies for blockchain payments solution that allow companies to accept cryptocurrencies as a payment for transactions and therefore expand payment options outside of traditional payments such as credit cards and wire transfers are various in the marketplace with some large scale companies and major banks already adopting the blockchain to resolve payments faster and cheaper.
Bitcoin payment technology
Bitcoin payments are becoming more and more popular with shops and online retailers by the thousands already accepting it as well as other cryptocurrencies as part of their payment channels.
The technologies are vast and you will encounter solutions in varying levels of robustness and adoption. For example, it is possible for you to start accepting bitcoin payments right away on your website or store by signing up with a few companies yet ethereum based payments are less common.
Certain countries are starting to see mass adoption of bitcoin payments in retail outlets with some being pitched by major banks. In Japan, for example, there are multiple companies including national retailers already accepting bitcoin payments in their stores. The adoption bitcoin payment technology is a bit slower in other markets but it is still popular in Germany and in the United States.
Bitcoin for B2B payments
Bitcoin for B2B payments would be a massive solution to problems of KYC, contracts and currency conversion for international payments specially. If a company needs to get paid anywhere in the world, it is a rather difficult process because depending on the size of the market and the strength of the currency in question, businesses lose millions of dollars in fees and conversion unnecessarily.
With mass bitcoin for B2B payments adoption, KYC would be minimized because all of the process would be as simple as accessing a blockchain based KYC system that is tied to a company owned IBAN. Contract would be in the blockchain eliminating laborious checks and mailing and the money would not take days to be compensated back to the home country account: it would be available instantly which reduces risk and the need for factoring.