Bitcoin had a steady start as a medium of exchange and has slowly begun challenging the hundreds of decades-old fiat money system. Businesses are now moving towards developing systems which could aid the further adoption of the pioneer cryptocurrency over fiat.
Bitcoin Payment Processing: An Introduction
To explain in brief, bitcoin payments processing means to provide tools and services which enable merchants, service providers, and other businesses to accept their payments in cryptocurrency instead of traditional payment options.
It works similar to processing payments via a credit or debit card, with the only difference being that the intermediate layer (or participant) here is Bitcoin’s decentralized public ledger rather than a centralized financial institution. Such payment solutions are available in online and offline mode at participating vendors and provide instant solutions without the merchant or the customer having to worry about the technical details of the process.
At present, all major Bitcoin payment processing companies provide multiple platforms for merchants and business owners to receive their payments in bitcoin. These platforms include payment through the point of sale (POS) systems, integration with e-commerce platforms, and even from within popular billing and accounting software.
Advantages of Bitcoin Payment Processing
Bitcoin, time and again, has proved to be more secure and cheaper compared to the traditional monetary options. It has also demonstrated peculiar advantages including being a better monetary exchange for the goods and services they provide. These advantages include:
- The biggest positive for using bitcoin is that the fees are significantly lower compared to traditional payment options such as credit cards.
- The chances of any fraudulent activity or theft are drastically reduced as payments made with bitcoin are processed through a decentralized network rather than a centralized institution.
- Bitcoin payment options provide printable invoices, accounting systems and easy to use POS applications that run on smartphones or tablets, akin to the traditional methods.
- Many merchant processors provide instant conversion from bitcoin to the local currency, hence, reducing the risk of bitcoin’s volatility. Also, many stand-alone online tools allow merchants to identify the existing conversion rate instantly.
Here Comes OpenNode
In recent times, man Bitcoin payment processors have emerged that enable merchants and businesses to accept payments in BTC. Most of them are cheaper and faster than traditional payments, but none provide instant transaction confirmation with near-zero fees. That is precisely what OpenNode has been able to achieve.
The company aims to accelerate bitcoin adoption among interested parties thus allowing them to experience the power and speed of the Lightning Network. It envisions a healthy network using bitcoin that can demonstrate transparency, security, and speed in a bid to become a global Bitcoin payment processing service provider.
The team behind OpenNode are a group of bitcoin enthusiasts, lightning network explorers, and designers who have worked tirelessly to empower every individual with the power of bitcoin.
- Instant Settlement – With the availability of Lightning Network, OpenNode payment processor provides immediate settlements with low fees.
- No Chargebacks – All transactions performed on OpenNode settle instantly on the blockchain, thus eliminating the risk of fraud and chargebacks giving the merchants a final say.
- Instant Exchange – As the transaction takes place at the merchant’s end, OpenNode converts bitcoin automatically to merchant’s native fiat currency. Also. Merchants have the option to convert them manually. OpenNode currently supports U.S. Dollars, Euros, Brazilian Reals, and Mexican Pesos.
- Supports Microtransactions – On OpenNode, there is no minimum limit to execute a transaction as the processor allows microtransactions. OpenNode also permits monetizing a fraction of a cent ($0.00001/txn).
- Hassle Free Withdrawals – Merchants have two withdrawal options: Automated Scheduled Withdrawal and Manual Withdrawal. The former is transferred to merchants’ bitcoin wallet, and Manual Withdrawals are converted to merchants native fiat currency and then directly transferred to their bank account.
- Mobile integration and quick invoicing – Merchants can generate invoices and receive payments via phone or a Point of Sale (POS) system using OpeNode’s multi-platform accessibility feature.
- Accessing historical transactions – The software stores complete transaction history and can be downloaded in a CSV format. The feature makes it easy to store transaction details for accounting purposes.
- Secure – The software 2FA login ensures complete protection against malpractices.
- Protocol implementations – OpenNode supports the newest bitcoin protocols like SegWit, Bech32, and Lightning Network.
Advantages of OpenNode
Apart from the features mentioned, OpenNode has other traits that keep it a notch ahead of its competitors. These include:
- The software is available at a competitive price which allows even smaller merchants to participate.
- Merchants can analyze their finances from both the desktop and mobile platform using payment processor’s in-house dashboard.
- The platform comes with customizable plugins and simple APIs that can be integrated with businesses’ eCommerce platform.
- Detailed documentation by developers is available.
- The software comes with an enterprise-level custom integration.
Pricing and Fees
- OpenNode charges a one percent transaction fee after the first $1,500 per month in revenue is generated. Before this threshold, there are no fees.
- OpenNode charges two percent on bank withdrawals but only above a minimum threshold of $100.
- The software provides free manual withdrawals to the lightning wallet.
- Free scheduled weekly withdrawals to merchants on-chain wallet.
Technology continues to evolve and provide new solutions that enrich next-generation business experiences. OpenNode seems to be among those ranks that can create a win-win situation for both merchants and users by providing a seamless and hassle-free way to transact in bitcoin.
Looking at the big picture, it will also help in the adoption of the premier cryptocurrency on a larger scale as people will use the cryptocurrency for day-to-day transactions.
Will Bitcoin become commonplace in the next five years? Let us know your views in the comments section.