Are you running an online business that involves subscription plans? If yes, uninterrupted service delivery must be your primary preference. How to make it work? Usually, we embed auto-renewal features with the website that automatically deducts a certain amount of money monthly, quarterly or according to the plan duration. These are called recurring payments in which the subscriber has to share the account details so that the money can be automatically deducted. Currently, most companies are using SSL gateway for secure payments and other personal details storage. Secure Socket Layer cannot give 100% assurance secure cyberspace. Therefore, blockchain technology for subscription payments comes to existence. Scroll down to know its working process.
Decentralised Blockchain for Subscription Payments
Blockchain is still facing some adoption issues but its security robustness is undoubtedly the best in class. After adding data information in the blocks of this digital ledge, no one can temper it by reversing the entries or changing the values. Rather than depending on a centralised channel of information storage, blockchain works on decentralisation concept. It safeguards the subscription payment gateway with the 256-bit cryptographic hash algorithm.
Just like a person connects his/her digital money wallet with subscription accounts, cryptocurrency accounts can also be embedded. Once the user agrees to subscribe to a recurring payments plan, a certain amount from cryptocurrencies such as Bitcoin, Satoshi, Ripple, Ethereum or Tether etc will deduct automatically. This amount directly transfers to your cryptocurrency wallet that later can be converted into any hard currency.
Why Do We Need a Decentralised Payment Gateway for Subscription Services?
For understanding the significance of decentralised payments system, first, you need to know the flaws in the centralised payments services. The biggest issue with centralization is compromising privacy. Users need to register with email ID, password and various other personal credentials. This data always remains prone to theft by hackers. Also, some subscribers don’t want to disclose their identity. For all of them, the decentralised gateway is a better option. Let’s understand the significance of decentralisation in payment gateway systems.
1. Fast Payments Processing
Blockchain eliminates the role of the middleman to process the transactions. Usually, digital wallet companies, foreign exchanges and banking institutions act as middlemen to execute the interstate and international payments. It takes a lot of time to reflect money in the recipient’s account. For a business, fast payments matter a lot because their future decisions depend on it. If you are an online seller of products or services, equip your portal with the decentralised payment gateway.
2. Lowest possible transaction charges
Usually, we have to pay more than 4% as transaction charges for international trading. Decentralised payment gateways have nominal charges that are applicable on the basis of network conditions and transaction size.
3. Anonymity from finance services companies tracking
Finance institutions critically examine your credit reports and other transaction histories. Adapting blockchain as a payment gateway keeps you safe from such kind of tracking.
How to Connect With a Decentralised E-commerce Payment Gateway?
All you need is a plugin to embed a decentralised checkout button with your e-commerce portal. Many companies are providing HTML buttons & browser extensions to embed your cryptocurrency wallet with the website. For the convenience of merchants, these extensions are designed to save the order details along with customer information. While deciding a payment button for subscription services, make sure that you are getting the following features:-
- Freedom of activating, pausing and archiving the subscription
- Simplified dashboard to track and manage
- Inbuilt feature to edit and export orders
It is true that many businesses are facing adoption issues with cryptocurrency right now but it is soon going to become the future of e-commerce businesses. Right now, you need both decentralised and centralised payment gateways in order to engage all types of customers.