What Does It Feel Like to Pay the Bill in Crypto?

It's 2024, and cryptocurrencies have definitely found a home in eCommerce. Some merchants who accept cryptocurrencies in their online stores via crypto payment gateways, such as CryptoProcessing.com and Coinbase (NASDAQ:COIN) Commerce, have reported significant increases in ROI and user volume, although specific figures may vary depending on individual circumstances.

With the current growth trends and adoption rates, the cryptocurrency payment market has the potential to gain worldwide acceptability. Web 2 companies are gradually coming to the realization of integrating crypto payment solutions into their websites, following the lead of early adopters like Microsoft (NASDAQ:MSFT), Paypal, Shopify (NYSE:SHOP), and Tesla (NASDAQ:TSLA), among others.

The feeling of paying the bill via a physical MPoS terminal still feels like a long way off. But why? When it comes to brick-and-mortar sales, regulatory uncertainty, low crypto penetration, high volatility, and an overall lack of industry trust are some of the culprits.

However, the industry appears to be on the cusp of a shift as pressure mounts. Many merchants are becoming increasingly eager to capitalize on low fees, lightning-fast transaction times, better security, and the ability to eliminate chargebacks and high rolling reserves, not only through their online shops but also in brick-and-mortar stores.

Meanwhile, with an improving regulatory landscape and rocketing crypto adoption, the sky is for the taking, and novel MPoS providers, such as Lunu, are lining up on the runway. This article aims to provide a hands-on demonstration of a novel MPoS terminal to explore the experience of paying bills using cryptocurrencies.

Step 1: The Customer's Choice

When a customer chooses to pay with cryptocurrency—whether for a dinner for two, a new pair of sneakers, a hotel checkout, or a donation to a busker—the first step is interacting with the Lunu Terminal. Upon deciding to make a payment, the customer voices their preference for using a cryptocurrency wallet over traditional payment methods.

Step 2: Selecting the Cryptocurrency

The vendor activates the Lunu terminal, enters the amount owed in their local currency, and hands it over to the customer. The customer then chooses the wallet type and cryptocurrency they wish to use for the transaction. Lunu's platform is equipped to handle a wide array of different wallet types and cryptocurrencies, providing flexibility to the customer.

This step is crucial as it determines the specific blockchain protocol that Lunu's backend system will interact with to process the transaction. The choice of cryptocurrency can affect the transaction speed and the exchange rate applied in the subsequent steps.

Step 3: Confirming the Transaction Amount

After selecting a cryptocurrency, the customer is shown the equivalent amount of the purchase price in that cryptocurrency.

For example, if the purchase in a restaurant is €100, the Lunu Terminal automatically calculates and displays how much that is in the selected cryptocurrency based on the current exchange rate. This rate is dynamically sourced from various exchanges or through Lunu's own pricing algorithms to ensure the customer receives a fair and competitive rate.

At this point, the terminal generates a QR code representing the transaction details, including the crypto amount and Lunu's receiving wallet address. The customer scans this QR code with their cryptocurrency wallet app, preparing to send the specified amount to complete the payment.

Step 4: Conversion and Transfer to Retailer's Bank Account

Upon the customer confirming the payment on their mobile device, Lunu's system, integrated with sophisticated processing services and blockchain oracles, instantly verifies the transaction on the respective cryptocurrency's blockchain.

Following a successful verification, Lunu immediately converts the cryptocurrency into fiat currency. This conversion is executed leveraging real-time exchange rates to ensure the retailer receives the exact fiat amount of the original transaction, irrespective of potential volatility in the cryptocurrency market.

Finally, the converted fiat money is transferred directly into the retailer's bank account. This transfer is typically completed within a short time frame, ensuring that the retailer quickly gains access to the funds from the sale, much like a conventional credit card transaction.

More on the Lunu Ecosystem

Aside from offering an affordable MPoS terminal, the Lunu widget can be integrated into CMS platforms, PSPs, and online checkouts.

Lunu also offers a 'Pay-by-Link' service, where a digital shop can send a secure link directly to customers for custom purchases.

Notably, the Lunu team and its  offerings  continue to challenge the norm, and have taken the step some crypto payments have been hesitant to take in bringing merchant-side benefits to the brick-and-mortar realm.

Final Thoughts

The cryptocurrency industry has come a long way since Bitcoin Pizza Day – when a single transaction for two large pizzas in 2010 marked the beginning of what would become 'crypto retail.' This event also highlighted the challenges ahead. An overhaul of the Proof of Work consensus mechanism was needed for scalability, along with the genesis of crypto regulations and a shift to QR-code payments to streamline adoption. Not to mention, a significant amount of educational infrastructure was necessary to flatten the learning curve.

But, the industry could be past the bulk of it, and perhaps the rise of such payment solutions is a sign that the crypto ecosystem is progressing. Solutions like Lunu aim to provide a seamless payment experience for cryptocurrency transactions, potentially offering user and merchant benefits such as lower fees, faster transaction times, and enhanced security. However, the extent to which these solutions match or exceed traditional fiat payment methods remains to be seen as the technology and adoption continue to evolve.

The future is bright, and the crypto ecosystem keeps expanding as bill payment in crypto gains worldwide acceptability and adoption. For businesses and individuals interested in integrating with Lunu, whether in-store or online, the process is just a click away.