Blog post by Deniss Bogdanovs, Business Development at PayPugs.
In 2017, when there was a surge in cryptocurrency and a sharp increase in prices for bitcoin and many altcoins, it was only rumoured that institutional market players might work with cryptocurrency. Now in 2021, where cryptocurrency transactions are the norm many institutional players officially invest in and work with cryptocurrency on a daily basis.
Nowadays, many payment platforms (EMI’s) operating as financial institutions offer cryptocurrency related services to their users. They use well-known payment systems such as Revolut, Venmo (Paypal), Transferwise and PayPugs, enabling their users to buy, sell and transfer cryptocurrency as required.
Since most businesses offering payment services seek and obtain a banking license, cryptocurrency transactions are becoming accessible to a wider audience.
What services are offered by EMI’s?
Most EMIs offer services for buying and selling cryptocurrencies to both individuals and legal entities. A company can open an account with an EMI, having passed the standard due diligence and, upon request, exchange cryptocurrencies, along with the usual banking services.
As many companies begin to accept payments in cryptocurrencies, the services provided by EMIs have become increasingly sought after to optimize working with cryptocurrencies and saving on the fees charged by traditional banks.
How are payment companies unique?
The uniqueness of payment companies is their clients can deposit fiat money through SWIFT or SEPA payments, a service not offered by many exchanges.
However, in turn, they may have an inability to keep actual bitcoin in their account and use that account as an electronic wallet. Also, the exchange commission may be higher than crypto exchanges.
The conclusion from this is that payment operators supporting multiple cryptocurrency projects, already use the services of cryptocurrency projects. Ripple XRP, is used by many banking structures for faster and more profitable money transfers. Blockchain technology is a serious part of daily life. As the possibilities of blockchain technologies are not limited, an innumerable number of projects can be based on them.
Could cryptocurrency be the future of banks?
It is difficult to answer this question with certainty. Failure to adhere to traditional financial practices can ultimately hinder the longevity of a business. This suggests that it may be necessary to find a middle ground; with banks becoming more flexible and understanding in the field of blockchain, and in turn, the creators of new cryptocurrencies taking into account the requirements of traditional banking practices.
Realizing the inevitability of these coming changes, six banks have already joined forces to create their own solutions. These include HSBC, Barclays, State Street, Canadian Imperial Bank of Commerce, Credit Suisse, and MUFG. Perhaps they can use blockchain technology in such a way as to regulate cryptocurrencies, allaying fears of criminal activity.
Cryptocurrency capitalization forecasts and bitcoin prices
The growth of fintech companies skyrocketed in 2020 due to the arrival of the coronavirus. Since it is no longer possible to travel easily, it has an increased interest in cryptocurrency.
However, the cycle may end as the price for BTC reaches 100 thousand, followed by a correction in the crypto market. There are assumptions that the correction will no longer be below 800 billion in total capitalization, because the institutions have already confirmed that they are crypto investors and have begun to accept crypto as payment for their goods and services.
Another important factor is the blockchain market is growing and the boundaries are not yet visible, the NFT (non-fungible token) market is confirmation that there are infinite applications for this technology.
Cryptocurrency has every chance of becoming a fully legal tender as many people are ready to accept it as payment for their products and services. If in the future giants like ebay use crypto currency it will be an endorsement for all, but whilst it’s quite volatile, not all people are ready to embrace it.
How can you earn as a representative?
Most financial and consulting companies work with many banks, payment operators and lawyers from different countries. Anyone interested in finance and new technologies can become a representative of any company. A great job for freelancers or those who love to work anywhere in the world.
Processing and payment operators such as PayPugs, offer commission to representatives for connecting their client to the platform. It can be very lucrative for the representative, if they have a large number of subscribers or a portfolio of clients whose accounts are constantly being frozen.
Although Forex, online casinos, crypto, gaming and many IT companies are classified as the high-risk industries by regular banks if the business has the appropriate licences and proof that their business is legal, an EMI such as PayPugs can offer them a bank account. This includes an e-wallet with IBAN and many other services which are relevant to their industry, for example prepaid cards.
Many payment operators pay representatives about a percentage of the onboarding commission. In addition, they are presented with the Buy rate for each industry for SWIFT / SEPA transactions and processing for any industry. Further on the Internet, you can search for similar companies and offer them the services of your partners in processing and banking solutions.
This is a great job for freelancers and people who love to work from anywhere in the world. In our time, telecommuting is relevant and this is an excellent opportunity for people who want to connect their lives with finance and cryptocurrency.
Reach me out to have a small intro call or a chat!