Payment processors allow companies and merchants to accept payments and perform transactions quickly and effectively. Due to the emergence of Bitcoin as a payment alternative, Fintechs have developed different payment processors for Bitcoin, especially with the needs of medium-sized companies in mind. However, the lack of information on the subject leads to the creation of myths about Bitcoin payment processors. Here are the major myths about these payment processors.
Slow transactions
Due to the characteristics of Bitcoin, some people think that Bitcoin payment processors’ transactions are slow. While it is true that confirming a transaction may take some time due to the mining process, these payment processors often implement techniques and protocols to speed up this process and streamline transactions. An example of this is the Lightning Network, whose creation improved Bitcoin’s scalability, allowing actions that normally cannot be performed in the Bitcoin network, to be one of its main improvements, the execution of transactions instantaneously and with a low cost in its commissions.
Centralized payment network
Another myth about payment processors for Bitcoin is that it operates under a centralized network. However, Bitcoin and the blockchain are decentralized. For example, validation in Bitcoin is decentralized because it is done through a process called mining, in which miners compete to solve complex mathematical problems. This distributed consensus process ensures that all transactions are valid and correctly recorded on the blockchain without relying on a central authority.
Another outstanding feature of Bitcoin and blockchain technology is that it has a geographic distribution of nodes, which are geographically distributed around the world, allowing the network not to be concentrated in a single location or jurisdiction, making it resistant to targeted attacks or interference or influence by a single entity or government.
Low flexibility
Many people believe that payment processors for Bitcoin are not flexible since, being a cryptocurrency, some think that its use is limited exclusively to Bitcoins, leaving aside FIAT money. However, such processors allow receiving payments in Bitcoin and automatically converting them to FIAT money, which gives great flexibility to the business or merchant using such payment processors.
Difficult to use
Some people may believe that payment processors for Bitcoin are hard to use. While blockchain technology may be complex for some people to understand, payment processors have a second purpose as they were created to simplify business transactions and are accessible to everyone, which requires their interface to be intuitive and user-friendly. Currently, many Bitcoin payment processors have the same interface (and level of complexity) as any other conventional (FIAT currency) payment processor on the market.
Unsafe tool
Another myth about these payment processors is that they are insecure financial tools. Although throughout the history of Bitcoin, vulnerabilities have been found in some systems and payment processors, the truth is that these have occurred due to inadequate protocols and security measures.
Thanks to blockchain technology features such as cryptography, decentralization, privacy authentication, and better security procedures and measures, there are now a variety of payment processors that have a high level of security. An example of this is Pilsenga‘s payment processor for Bitcoin, which is compatible with Lightning Network and is designed especially for medium-sized companies.
What do you think about this topic? Do you want to learn more about payment processors for Bitcoin?
If you are interested in Pilsenga’s products or services (including the payment processor for Bitcoin) you can visit our website and register on our platform by visiting the following link.
