Many Forex brokers are quite familiar with the following situation: your sales team have made contact with a very enthusiastic lead, KYC procedures were done properly, he was trigger-happy to deposit a certain amount, you’re sitting in front of your dashboard waiting for the numbers to appear, and instead pops up the infamous “Transaction Declined”.
“We hear it from brokers over and over”, says Haim Machluf, Sales and Business Development Manager at Leverate, a leading company in the field of complete brokerage solutions. “One client told me that it can happen more than 13 times a day! Sometimes the investor was 100% ready to make his move, with some 30,000 USD. Making a wire transfer would simply take too much time. My client estimates that over one million dollars a year are going to waste because of this, or worse – to his competitors.”
It could be the customer’s bank, his credit card company, or the laws in his country of residence, but the end result is the same – no money deposited in your brokerage’s account. We all know that different regulatory frameworks around the world have different requirements.
Add to that that even within rather lenient legal environments, independent financial institutions like banks and PSPs can opt to be stricter on various forms of money transfers, such as Forex trading or gaming, or choose to act tougher with certain clients than the law permits them.
Enters the alternative – cryptocurrency-based payments. The promise of a world where transactions can have no boundaries has been circulating since the early days of Bitcoin, but only recently it seems that blockchain technology and the cryptosphere have matured enough to start offering viable, safe and secure payment options.
One of the most promising alternatives entering the market is Terrexa Pay – a crypto payment solution that promises to rid the world of rejection headache once and for all, and usher in the era of unrestricted approval. The institutions that stand to benefit from such a solution are not only Forex brokerages, but also online gaming and e-commerce enterprises.
“Many brokers are struggling with insufficient payment infrastructure in their countries, or with other restrictions on old-type payment methods,” says Oren Mizrachi, Director of Crypto at Leverate. “As veterans in working with financial institutions, we are well aware of the pains that our clients are facing with traditional payment methods.
In a world where crypto networks transfer funds across borders in a fast and efficient way, with no middleman involved, brokers with only Visa and MasterCard on their inventory can feel outdated. Solutions like centralized digital wallets are very expensive and not in widespread use. With Terrexa Pay, brokers are able to receive crypto payments directly into their own wallet.”
Terrexa Pay is good news for businesses who are having trouble with accepting fiat-based payments, as it automatically exchanges fiat to crypto to facilitate online payment.
But Terrexa Pay’s real novelty lies in its strictly crypto payment solution, for those brokers with Bitcoin-rich customers. “Terrexa Pay is not only an exchange – it’s also a unique solution that allows you to receive crypto from your clients with complete payer identification”, says Oren. “We took the anonymity out of crypto transfers!”
Terrexa Pay’s uniqueness in that front starts from step one. “We know that brokers like to keep things simple”, says Oren. The broker sends his extended public key to Terrexa, through which it assigns unique addresses to all the broker’s customers.
This simple step is one of Terrexa Pay’s strong points, as it provides the broker with the ability to identify the source of each payment – quite a rare advantage that saves the broker the need to be constantly on the phone with the payer.
The second step is the integration of a slick-looking widget into the broker’s front-end interface. A Terrexa Pay icon fits seamlessly alongside other payment icons in the brokerage website, such as credit card or bank transfer.
When the trader clicks it, he’s transferred to the Terrexa Pay widget, through which he can transfer his funds in a few clicks. Terrexa Pay monitors the blockchain in real time to identify new transactions to the broker’s address and informs him on his dedicated dashboard.
With online merchants increasingly providing crypto options for their clients, and as E-commerce continues to grow at an exponential pace, so then will cryptocurrency become a more mainstream method of payment, until ultimately it might even eclipse traditional methods such as credit cards, which require a minimum of four parties to complete each transaction—the merchant, the acquiring bank, the issuer’s bank, and the cardholders themselves – a chain that creates unnecessary costs and extends transaction times.
“When we imagined Terrexa Pay, we thought of a comprehensive payment solution that will streamline and simplify the way our clients process transactions from multiple sources, from credit cards to bank transfers to cryptocurrency payments”, says Oren. “We believe that safe and stable payment solutions are the next step in the cryptocurrency evolution.”
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates.