Blog

It's no longer a choice – crypto payment processors need to offer instant confirmations

The pace and intensity of technological innovation continues to reshape the payment industry. Traditional institutions need to innovate in the face of rising disruption from fintech providers, while consumers increasingly demand seamless, frictionless and more efficient payment experiences beyond the vanilla credit card, EFT and cash payment options.

And this trend extents to the cryptocurrency payment market. However, to entrench their relevance in the mainstream marketplace, cryptocurrencies, with BTC and BCH at the forefront, need to add significant value and provide a service that is orders of magnitude better that current fiat services.

These capabilities must span the spectrum of financial transactions if cryptocurrencies hope to reach the network effect and prompt greater adoption. In this regard, the ability to enable instant payments and deposits are non-negotiables, because anything less is more of the same when compared to fiat options. More importantly, instant tx with fiat currency is rapidly becoming the norm. This has amplified the urgency and necessity for the enablement of instant crypto tx – functionality that is already available.

The pace and intensity of technological innovation continues to reshape the payment industry

Speed, convenience, cash flow

These trends have resulted in a growing number of innovative mobile and contactless payment solutions. However, beyond these developments in digital payment modalities, fundamental functionality in payment processing is being overhauled across the spectrum as financial services providers seek to address the need for improved consumer and corporate experiences.  

According to a KPMG report, instant payments are rapidly becoming the “new normal” in the financial services space. This trend is being driven by a number of converging factors. Whether they are transacting with fiat or cryptocurrency, modern consumers demand speed and convenience, while businesses and merchants want transfer and payment transactions to reflect in their accounts immediately to improve cash flow and the availability of operating capital.

However, most of the available payment services in both domains are ill-equipped to meet the requirements of our modern on-demand economy, taking anywhere from a few hours, up to a few working days to reflect in business or merchant accounts, depending on the instrument of payment used.

Instant fiat and crypto payments, on the other hand, enable near-instant account-to-account transfers. Various options in this regard also offer businesses cost-saving benefits over more expensive traditional payment methods, such as credit cards which attract interchange and other merchant fees.

And demand for instant payment services is rapidly rising. The European Union’s Single Euro Payments Area (SEPA) instant payment platform launched late last year already offers 24/7/365 availability across 34 countries. It ensures funds are available to the beneficiary within 10 seconds, with a maximum transaction amount of €15,000 at present – proving that even the European Central Bank believes that instant payments are set to become the norm.

Businesses want payments to reflect immediately to improve cash flow

Get up to speed, crypto

It’s a prolific trend that the cryptocurrency payment industry ignores at its peril. Perceptions around crypto as a valid form of payment are already skewed, with 64% of respondents in a recent survey of finance and treasury professionals conducted by TD Bank stating that they do not view cryptocurrencies as a legitimate form of digital payment.

To ensure the relevance and increased adoption of cryptocurrencies amid this shifting fiat currency market dynamic, the cryptocurrency value proposition must be affirmed through the adoption of the instant payment model.

Without this capability, the customer experience will be compromised, increasing the risk that other, more efficient payment options will be adopted. Any purchase using cryptocurrency as a method of payment should therefore be optimised to be simple, straightforward, and safe and secure.

The crypto value proposition must be affirmed through the adoption of the instant payment model

Complexity, doubt and delay

There is no room for complexity, doubt and delay. Yet, these are the traits that currently characterise much of the crypto payment sector, because merchants generally wait to receive multiple confirmations before completing a transaction. This can be a minimum of 10 minutes.

A solution like GAP600 enables the acceptance of instant zero-confirmed (0-conf) payments and deposits made in Bitcoin and Bitcoin Cash transactions, with plans already in the pipeline to accept additional cryptocurrencies.

Of course, as more businesses look to implement instant payments, mitigating fraud becomes a key consideration. While there is a risk in accepting 0-conf transactions – transactions which have been published and as yet haven’t been included in a mined block – GAP600 mitigates that risk with a proprietary risk engine that analyses and performs live risk scoring for each transaction as it reaches the mempool.

Revolutionise the system

This enables us to guarantee cryptocurrency payments before they reach the blockchain, which enables exchanges, payment service providers, and other operators and merchants that accept cryptocurrency to recognise unconfirmed Bitcoin and Bitcoin Cash transactions as final.

This solution is revolutionising the speed of cryptocurrency transactions and adds significant value to a range of commercial environments by enabling instant, risk-mitigated cryptocurrency commerce that is safe and secure, yet still offers a simple, more efficient user experience. Without this functionality, the use of cryptocurrencies as a mainstream and pervasive payment method will fail to ever gain traction.

GAP600 in the news

Gap600 logo

TEL: +1-929-214-1122 or +44-113-490-0117

Address: 54 Ahad Ha’Am st, Tel Aviv – Yafo, 6579402, Israel

© Copyright 2018
Privacy Policy 

Blog

Accepting instant Bitcoin deposits in the gaming industry is critical

The estimated value of the global sports betting market ranges from $700 billion to $1 trillion, with the online gaming industry expected to reach $59.79 billion in volume by 2020, reports The Daily Hodl.

It’s a massive market with an ever growing number of gaming and betting platforms, including an explosion in Bitcoin casino options. These are proving popular due to better house odds over conventional gambling sites  – around 1.5-2% – and the ability to offer ‘provably fair’ games, with the option of anonymity on sign up.

So, whether online casinos or gaming platforms offer crypto-only gameplay, or augment their current payment options by accepting Bitcoin (the most popular digital currency in the sector) and a growing number of altcoin deposits, enabling cryptocurrency deposits is increasingly becoming a non-negotiable.

Acceptance alone is not enough

Seamless functionality

However, acceptance alone is not enough. To attract and retain players, these platforms need to combine a slick user interface with seamless functionality to create a customer experience that meets player expectations and their demand for instant gratification.

In fact, the gambling and gaming industry is so focused on delivering exceptional customer experiences that conferences devoted entirely to addressing this specific requirement are hosted around the globe.

Providing a seamless experience enables players and gamers to immerse themselves in their preferred activity, without rigidities or a limitation of choice in terms of how and when they play.

And a pivotal element of the gaming and gambling customer experience is the ability to transact and make deposits or withdrawals instantly.

Considering compromised CX

However, this can prove exceptionally challenging for cryptocurrency payment gateway providers, because multiple confirmations may be required before a transaction can be processed. This can take anywhere from 10 minutes to a few hours, which severely compromises the customer experience.   

Crypto payment processors targeting the gambling industry also need to meet and surpass the functionality offered by entrenched traditional payment enablement solutions to ensure their relevance and applicability in the sector.

To do so requires, first and foremost, a credible service and solution that meets specific requirements around fraud detection and prevention, and provides security for data and transactions. A suitable payment gateway must also be easy to integrate, and cost effective.

Anonymity and customer privacy are also guaranteed

0-conf tx as final

GAP600 is a solution that addresses all of these pain points for cryptocurrency payment gateway providers that operate in the gambling and gaming sectors. GAP600 makes instant, risk-mitigated cryptocurrency transactions on gaming and gambling platforms possible by recognizing unconfirmed (0-conf) Bitcoin and Bitcoin Cash transactions as final.

This is done using a proprietary risk engine that analyzes and performs live risk scoring for each transaction as it reaches the mempool. This enables GAP600 to guarantee cryptocurrency payments before they reach the blockchain.

Integration is soft and simple, requiring minimal time to set up and activate. Once the service is switched on, customers can start playing immediately following a deposit. Importantly, anonymity and customer privacy are also guaranteed, because the GAP600 system never requires customer information to enable the transaction.

However, despite the anonymity of crypto payments, this intelligent solution also helps to mitigate instances of fraud, which is a high-risk factor in the gaming and gambling sectors according to GAP600’s market experience. Anonymous games in particular are vulnerable to fraud, and the capacity exists to attempt fraud multiple times if the correct safety and security checks are not in place.

GAP600 therefore supports gaming and gambling platforms by leveraging that experience when dealing with crypto deposits, payments and withdrawals, with the ability to guarantee and secure transactions. These capabilities ensure that online gaming and gambling operators build credibility among their customers, while crafting a memorable user experience by meeting the demand for instant deposits, which is rapidly becoming the industry standard.

GAP600 in the news

Gap600 logo

TEL: +1-929-214-1122 or +44-113-490-0117

Address: 54 Ahad Ha’Am st, Tel Aviv – Yafo, 6579402, Israel

© Copyright 2018
Privacy Policy 

Blog

Enhance exchange liquidity and CX with instant BTC & BCH deposits

The exponential growth experienced within the cryptocurrency economy over the past five years has largely been driven by the explosion in the number of exchanges, which enable cryptocurrency trading, and crypto-mining.

Various innovative enterprises that cater to the demand for these services have launched during this time, with a significant number growing from startups to billion-dollar ventures within just a few years.

Crypto exchanges live and die on liquidity and customer experience

Cryptocurrency exchanges, in particular, are in the midst of a boom phase, with hundreds of millions of dollars in value traded on a daily basis across the various decentralized and centralized exchange platforms. According to Bitcoin.com, over 500 exchanges are currently in operation, with more added on a weekly basis at present. 

With interest in cryptocurrencies on the rise, especially as their appeal and application grows within the mainstream investment market, the demand is also increasing for more sophisticated, advanced and user-friendly services.

Liquidity and CX

However, for both custodial and non-custodial exchanges to encourage and accommodate greater trading volumes and thereby generate more revenue, it is essential that two pertinent challenges be addressed. These include the need for increased liquidity, and an enhanced customer experience (CX) that does not compromise user security.

In their quest to provide a secure service, most exchanges generally wait for at least six confirmations before processing a transaction (TX). This helps to mitigate double spend by validating deposits. However, although waiting for six blocks to confirm is a prudent standard from an exchange perspective, it seriously compromises the CX.

Traders don’t want to wait for 10 minutes before their TX is finalized, and it can take even longer for funds to be transferred between accounts. They also want reliable, secure and safe services that offer seamless functionality. With so many exchanges currently in operation, those that fail to deliver on this value proposition will quickly lose their relevance and appeal.

Enhanced customer experience that does not compromise user security

Enabling flow

As it relates to liquidity, this delay in confirming and processing transactions also means exchanges hamper the natural flow of cryptocurrencies between buyers and sellers. Without adequate liquidity, activity on the exchange slows, and the resultant pent-up demand also places strain on the exchange, further compromising the CX.

In the search for a substantive solution to these and other common impediments to a seamless and streamlined experience, a number of innovative solutions have been developed by forward-thinking start-ups, and this list includes GAP600.

The GAP600 solution facilitates instant, risk-mitigated cryptocurrency commerce by enabling cryptocurrency exchanges to recognize unconfirmed (0-conf) Bitcoin and Bitcoin Cash transactions as final. This is made possible through GAP600’s proprietary risk engine, which analyzes and performs live risk scoring for each transaction as it reaches the mempool. This enables GAP600 to guarantee cryptocurrency payments before they reach the blockchain.

Revolutionary speed

This functionality is revolutionizing the speed of cryptocurrency exchange transactions, which address both the liquidity and CX challenges that currently afflict the sector. By enabling instant and secure cryptocurrency trading, traders will no longer need to wait for confirmations, which means liquidity enters exchanges quicker. It also enables traders to trade arbitrage opportunities, which further improves liquidity.

In terms of enhancing the CX, GAP600-enabled instant transactions ensure there’s no frustrating delay as traders watch and wait for a deposit to confirm. The added value of implementing a secure service like GAP600 on the exchange platform adds to the peace of mind that every provider wishes to convey to their traders. It creates the impression that the exchange and its management consider the security and safety of a trader’s funds to be a high priority. This helps to craft a compelling value proposition and point of differentiation in an increasingly cluttered marketplace.

GAP600 in the news

Gap600 logo

TEL: +1-929-214-1122 or +44-113-490-0117

Address: 54 Ahad Ha’Am st, Tel Aviv – Yafo, 6579402, Israel

© Copyright 2018
Privacy Policy