Cryptocurrency has experienced a boom in recent years, with new digital currencies popping up to join the ever-growing list of options. One such currency is USDT — a stablecoin pegged against the U.S. dollar that eliminates any volatility risks associated with cryptocurrency payments. In this article, we will be looking at why you might want to use the USDT payment method as well as how to set up a crypto payment gateway on your website. Stay with us and learn more about the benefits that USDT payments can offer you!
Is USDT a Good Payment Method for Your Business?
Developed on the Bitcoin blockchain, USDT was launched in 2015 as a stable cryptocurrency that could be used in everyday transactions, similar to U.S. dollars. The cryptocurrency runs on the Omni Layer Protocol.
Because USDT is backed by U.S. dollars, its value should theoretically remain stable. However, USDT's value can sometimes fluctuate due to mismanagement and manipulation in practice. However, these fluctuations are minimal compared to other cryptocurrencies.
The USDT currency is frequently used to purchase other cryptocurrencies, particularly on exchanges where fiat funds are not accepted. The currency can also be used to send and receive money internationally as well as as a means to store value.
Stablecoins have greatly aided DeFi (Decentralized Finance), a system that uses smart contracts on blockchains. By December 2021, the stablecoin market had reached $167 billion, a rise of more than thirty-fold from only $5 billion in 2019.
Many reasons exist for setting up a USDT payment system and accepting USDT payments. Here are a few:
- Easy Access
Stablecoins have revolutionized the way people can access and transfer funds, particularly in remote or unbanked areas. They provide quick, low-cost payments and are becoming increasingly popular for those who need assistance buying products in times of crisis, such as natural disasters or a pandemic — allowing them to make purchases without having to transport large amounts of cash. Their ease of use and accessibility has made stablecoins an invaluable tool for communities in need.
- Smooth International Payments
Stablecoins like USDT provide an efficient, cost-effective alternative to traditional banking systems when it comes to making payments internationally. They eliminate the frustration of slow processing times and frozen funds associated with wiring money across borders. Furthermore, businesses that often deal with customers in other countries benefit from having the option to pay in USDT as it not only saves them time and money but also allows them to take advantage of innovative DeFi financial services.
- Low Transaction Fees
USDT is becoming increasingly popular among consumers and businesses as a medium of exchange and investment due to its convenient fee structure. Unlike exchanges that charge steep fees for making transactions with fiat currency, transferring funds between two Tether wallets is completely free. This has become particularly beneficial for those who are paid in cryptocurrency, avoiding the 7% fee that is commonly charged to international employees and migrant workers.
- Fast Transaction Speed
Users can benefit greatly from Tether's fast transaction processing times, with deposits and withdrawals usually taking only minutes rather than several business days, which is typical in traditional banking. As well as being convenient, it is also beneficial to those who may not have access to traditional financial services.
- Price Stability
USDT has become an attractive option for many companies due to its cheaper transaction costs and the predictable pricing it offers relative to traditional fiat currencies. As such, USDT is increasingly accepted as an alternative on various cryptocurrency exchanges, offering users greater stability when trading digital assets. Those looking for a more stable way of transacting with cryptocurrencies may want to consider USDT as an option.
It is important to note that these are only some of the reasons why USDT payments are worth accepting. With the growing popularity of stablecoins, more and more reasons are expected to appear.
The USDT Payment Gateway Setup
After learning some of the reasons why USDT payments are advantageous, let's move on to setting up a USDT payment gateway.
The first step in accepting USDT payments with a stablecoin gateway is to set up an account with the provider of your choice. Once you have created an account, you will need to add a USDT wallet address and configure it for transactions. This wallet address should be kept private and secure as it can be used to receive and send payments.
Once the wallet address is configured, you will need to add it to your payment portal or e-commerce platform. Depending on the system you use, this may involve some manual work or require the help of a web developer. Once your gateway is set up, customers can simply choose USDT as a payment option during checkout.
To ensure the security of your customers' funds and to comply with relevant laws, you may need to perform KYC (Know Your Customer) checks on customers who pay with USDT. This is done by verifying their identity and ensuring they are the legitimate owner of the account or wallet they are using to pay.
Finally, you will need to set up a process for safely and securely withdrawing your USDT payments from the gateway account or wallet. You should always follow best practices for cryptocurrency storage, such as keeping large amounts of funds in cold wallets and only moving them when necessary.
Accepting crypto payments with a USDT payment gateway can be a great way to increase the financial security and flexibility of your business.
Conclusion
With the rising popularity of digital currencies, accepting payments in USDT is quickly becoming a popular choice for businesses around the world. By setting up your stablecoin payment gateway today, you can take advantage of this growing trend and provide customers with more options when it comes to paying for goods or services.
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