After the payment system of Visa went down at the beginning of June, millions of people in Europe and partially in the USA could not pay for any products or services. This has again provoked a discussion about introducing decentralized paying systems.
After few hours the problem was solved, but the whole situation left a bad taste. While using alternative decentralized systems that would simply be impossible to happen.
The graphic below shows some potential pionieers of paying systems who provide a comprehensive solution for managing cryptocurrencies. They also offer three times lower transaction fees or even non-existent compared to Visa’s 3 percent.
It was the first operator to cowork with Bitcoin. The aim of the platform is to become an equivalent of Apple’s Apple Pay payment system.
In 2017 BitPay processed more than 1bln dollars of payments in Bitcoin. Another great step for the company was developing a BitPay Visa debit card. The card allows payment through POS-terminals, as well as deposits and withdrawals at ATMs.
Coinbase Commerce comes from Coinbase exchange and allows to accept payment in cryptos with the funds directly credited to the wallet of the use, with full account control.
Coinbase has firmly established itself as a processing operator for entrepreneurs. For accepting Bitcoin payments, merchants are not charged any fees, but for the conversion of funds the system retains a charge of 1%. Functionally, the Coinbase Commerce plug-in is very similar to the PayPal payment system, requiring a phone number and an email address only.
GoCoin was primarly created for personal use. Now it is a quite popular platform for digital currencies and offers payments for online and retail merchants in BTC, LTC, DASH and BCH. It was one of the very first services thta introduced lower fees.
The level of service and the number of options are impressive for both buyers and sellers. It is not limited only for to payment instruments, but there are also online stores to be found. We may choose among 16 categories of products, including XBOX, clothes, beds for cats and cannabis seeds.
At the beginnig, this project was meant to be a cryptocurrency prepaid cards service. After rebranding in 2016, Coinsbank has become a full paying platform and since then offers high standards in everything connected to cryptos – managing, processing, exchanging etc. In spite of a rather small choice of supported cryptocurrencies, the platform holds a steady position in the top 10 cryptocurrency exchanges.
GoByte is developing its own payment service and offers no fees for processing inside the platform and non-cash payments. The module has been designed to i.a. help the existing terminals easily connect to POS terminals. Together with InstantSend and zero fees transactions, GoByte is planning to issue their own cryptocurrency debit cards, ATMs and POS terminals.
In many cases, developers of many projects are now trying to put their startups in mobile applications, skipping the plastic cards (QR and NFC).
There are no grounds at the moment for suggesting that someone could become a competitor for Visa. For most users, the functionality and ease of Visa’s servises are worth the 3% fee.
But it is still possible that one of the above mentioned solutions will earn a significant share of the cryptocurrency transactions. By the time being, the future development of such projects is difficult to predict.