How to find the best banking provider for your crypto exchange business

How to find the best bank provider for your crypto exchange company

So, you’re a crypto company wanting to expand your business, but you need to secure the right banking partner. How do you go about finding the best bank account for crypto? And how can you tell which is the best for your needs?

The world of crypto is still facing a lot of challenges, not least because it has a tendency to be volatile and unregulated. Despite this, there is a huge interest from various companies in cryptocurrencies and blockchain technology – especially considering the possible benefits that they could bring to businesses all over the world.

In recent years, there are now some banks that have been trying to establish themselves as leaders in crypto-related services and some of them have already entered the crypto sphere – but not all of them are suitable for every crypto business. 

This means that crypto companies need to make sure they choose the right banking partner for their particular needs. However, this isn’t as easy as it sounds. But don’t fret. We’ve put together a comprehensive guide that will help you choose the right partner and explain what you need to look out for.

Challenges Facing Crypto Companies

Before we get started, let’s take a quick look at some of the challenges facing companies who choose the wrong bank account for crypto merchants:

Chargebacks and fraud 

Chargebacks and fraud are a huge concern for any company accepting and operating with cryptocurrency. The right banks will be able to mitigate this risk and protect you from fraudulent activity and chargebacks.

Compliance and regulation  

Banks that specialise in cryptocurrency tend to work closely with regulators, ensuring they’re aware of the business you’re doing and helping to maintain compliance. Banks that do not specialise in cryptocurrency will often struggle with regulation, leaving you exposed.

AML and KYC 

There are some banks and financial institutions out there that don’t comply with Anti Money Laundering (AML) and Know Your Customer (KYC). If you choose one of these banks, it will put your business at risk of unlawful activities. Banks and financial institutions that specialise in cryptocurrency are fully compliant with AML and KYC.

Choosing the Right Banking Provider for your Crypto Company

When it comes to choosing a banking partner, there are a few different things that you need to consider. The right choice depends on your profile and what your business is looking for in a bank.

You’ll also want to determine which features are the most important for your particular business model. This will help you find an institution with the appropriate infrastructure and expertise while also ensuring that you get a positive banking experience.

Here are five steps you need to take when choosing a banking partner for your crypto company:

Step 1: Do your research and make a list of potential banks and financial institutions 

The first step is to compile a list of potential banking partners – and this is very important. Make sure you include all the relevant institutions that might be able to help your crypto company grow.

You’ll also want to do some research around each prospective bank, such as reading reviews from other businesses using them and checking their latest news online (you can find more information in addition to what’s provided on their website).

You’ll want to pay special attention to:

  • Regulation: You’ll need to ensure that your bank is compliant with relevant regulations so they are able to handle crypto transactions. 
  • Security of funds: You’re going to be trusting these bank providers with your money, so they must have high levels of security in place. Make sure the funds are held in segregated accounts away from their own company funds, protecting your funds in the event of insolvency or bankruptcy.

Once you’ve compiled your list of potential partners, it’s time to move on to step two in our guide.

Step 2: Figure out which bank is the best fit for your company

After you’ve drawn up your list of potential businesses, you’ll need to evaluate how each one can help your digital currency business move forward. You should look at the available features that they offer and compare them against your requirements. For instance, virtual IBANs for crypto in multiple currencies are essential when it comes to doing business internationally, so if your top priority is simplifying the virtual currency transaction process then this feature should be high on your list.

Step 3: Consider how easy it is to open a virtual account with the bank

In order to do business with a digital currency company, banks will need to set up a virtual account. This makes it possible for your business to transfer virtual currencies and deal with fiat currencies as well – something that might be important for your digital currency exchange.

Make sure to assess how easy it is for digital currency companies to open virtual accounts with your prospective bank and if they’re willing to do this in a timely manner. 

Step 4: Check if your cryptocurrency company is being treated with good customer service

Even though banks are generally very responsive when it comes to meeting the requirements of their customers, some institutions have more experience dealing with virtual currency-related issues than others. These banks generally offer dedicated services for businesses that work with cryptocurrencies – so it’s important that you find an institution that is willing to help your digital currency business thrive.

Step 5: Determine how easily you can transfer funds and open IBANs (or other payment channels)

Once you’ve established which bank offers the services you need, it’s important to find out if there are any fees or restrictions involved with transferring currencies – such as setting up an IBAN for crypto. You should also check if there are certain rules that affect how you can pay your suppliers and customers.

There might be certain banking procedures and actions associated with your business type – so you’ll need to work out whether they’re appropriate or not. For example, if you deal with a lot of small-scale transactions, then it’s likely that different rules will apply compared to taking large sums across borders.

Final Thoughts

It’s important that you do your research and seek advice from other cryptocurrency companies and people in the industry when choosing a banking provider for your business. 

As crypto is still a new industry and widely unregulated, there’s going to be a large portion of financial institutions that won’t work with any sort of crypto companies, but don’t get disheartened. This is where we can help! 

At Capitalixe, we specialise in helping crypto companies obtain high-risk merchant accounts, bank accounts in multi-currency which includes both SWIFT & SEPA, and banking solutions for crypto. 

Our consultants are more than happy to discuss your banking options and give you all the information you need before making any decision.

Contact us today!

Digital Payment Trends Dominating 2022

Digital Payment Trends Dominating 2022

The Covid 19 pandemic has resulted in a rapid increase in both the volume and value of digital payment options. In fact, according to Statistica, the total transaction value in the digital payments segments is projected to reach $7,860,739m in 2022 and $10,715,390m by 2025.

Mobile wallets, cryptocurrency and voice-activated payments – it’s all changing so quickly that it’s hard to keep track. But at Capitalixe, we’ve got your back. 

Below are some of the biggest trends in digital payments today and what the future holds for them. So grab a pen and paper (and a lovely hot cuppa) because here are the trends you’ll be discussing at your next dinner party…

Mobile Wallets 

Now one of the most used digital payment methods by consumers, mobile payments use will continue to rise with 26.93% of CAGR projected between 2020-2025.

These services offer customers convenient, instant payments with no need for cash or PIN numbers. And they’re changing more than just the shopping experience, they’re even revolutionising how we make utility bill payments and send money abroad.

Today, we can use our mobiles to pay for groceries and petrol or even delve into the world of digital currencies by transferring Bitcoin and other cryptocurrencies between wallets. And we can do it all with just a tap of our phones.

However, there’s still room for improvement in this sector as many retailers are still reliant on cards as an alternative to cash. This is mainly due to the fact that not everyone has a mobile wallet and some customers still don’t trust them.

BNPL Schemes

Buy Now Pay Later schemes are quickly becoming the preferred payment method, especially with millennials and Gen Zs. StudentBeans found that 42% of UK shoppers aged 16 to 24 used a BNPL service for big-budget fashion items and expensive tech purchases. 

These schemes allow users to spread the cost of expensive purchases over time. Let’s say you want to buy a product for £200. You can split this purchase into three or four monthly instalments with zero interest.

Klarna is one of the leaders in this field, with an impressive 90 million users utilizing their services. They are quickly replacing traditional credit cards, especially for internet shoppers. Last year, the company announced it had raised $639 million in funding rounds, bringing the company valuation to $45.6 billion.

Voice-Assisted Payments

If you own an Alexa, Google Home, or Siri device, you probably use it to get the weather report or book a cab. But did you know that these devices can also make your shopping easier?

Statista found that 35% of users use smart speakers for buying products like home care, groceries, and clothing.

So how does voice-assisted shopping work? You simply tell your digital assistant to order you a new pair of shoes, and they do it for you – there’s no need to type in any payment details as they are already logged into your account!

Cryptocurrency Payments

The future of digital payments is undeniably crypto. And with mainstream providers like PayPal, Stripe, and Square now accepting Bitcoin as a form of payment, it’s easier than ever to use these new currencies.

40% of large corporations in the Americas, Middle East, and Africa are considering using digital currencies for purchases over the next year. Plus cryptocurrency is helping a number of our clients who have high-risk merchant accounts. 

This includes the online gambling industry which has been completely revolutionised by cryptocurrency. Our Co-founder Lissele Pratt discussed how in Fintech Times. 

Named one of the biggest trends in the payments industry by PYMNTS, crypto is becoming an increasingly attractive payment option. If you’ve still got doubts about them, here’s why more and more companies are looking into crypto payments.

Artificial Intelligence & Machine Learning

AI is already changing the way we live, and now, it’s also revolutionising digital payments.

Machine learning algorithms are helping to identify fraud and prevent them, as well as providing real-time security measures against hacking.

AI can also help companies personalise the customer experience. Algorithms can identify a user’s shopping habits, preferred payment types, and any special requests – all in real-time!

As people become increasingly reliant on AI to provide a better user experience, these technologies will continue to gain in popularity.

AI Banking

As well as improving the user experience, AI is also starting to take on some of the back-end tasks that are traditionally handled by humans.

For example, AI can now provide automated financial advice based on individuals’ spending habits. Meanwhile, chatbots are also helping customers manage their accounts and complete simple transactions – without ever having to speak with a human being!

In the future, we may even see AI-enabled financial advisors replacing some of the roles of human advisers. For example, rather than recommending a specific assortment of products to invest in, an AI system would be able to provide financial advice based on individual circumstances.

Final Thoughts

So there you have it. Our top digital payments trends for 2022.

As technology continues to advance, we can expect to see more innovative payment technologies – particularly in the fields of artificial intelligence and cryptocurrencies. These could all become integral parts of our daily financial routines over the next year, from voice-assisted purchases to chatbots.

Capitalixe

At Capitalixe, we leverage the latest in financial technology solutions to help high-risk companies like those in the gaming and cryptocurrency sectors. We can help attain high-risk merchant accounts, multi currency IBANs or even bank accounts for financial institutions and the latest payment solutions. 

Contact us today to find out how we can help your business grow!

Capitalixe: How is Cryptocurrency Revolutionising the Online Gambling Industry?

The online gambling industry is still relatively new, with the first internet gambling site introduced in the mid-90s. Although it’s still in its infancy, the market is growing rapidly. According to a report by Research and Markets, it is expected to reach $72.02 billion by the end of 2021, at a compound annual growth rate (CAGR) of 12.3%.

One of the main reasons for this growth is its willingness to adopt new technological advancements. Many industries remain wary of accepting these changes in fear that they will be detrimental to the future of their business. However, this isn’t the case with online gambling. Known for being the industry to take risks, online casinos and gambling sites constantly adopt new trends to meet the ever-changing demands of the market. 

As Co-Founder at Capitalixe, Lissele Pratt helps companies in high-risk industries obtain the latest financial technology and banking solutions. Here she shares her thoughts on how cryptocurrency is revolutionising the online gambling industry. 



Cryptocurrency & Online Gambling

Lissele Pratt, Director & Co-founder of Capitalixe

A recent trend in the online gambling industry has been the adoption of blockchain technology. Bitcoin paved the way for this change as the first blockchain-based currency adopted by casinos in May 2012. This was shortly followed by other popular digital currencies, including XRP Ripple and Ethereum. We’ve recently seen the emergence of new cryptocurrencies, specifically for the online gaming industry, such as CasinoCoin. 

Cryptocurrency casinos allow people to deposit money and withdraw their earnings in digital currencies. These casinos have completely revolutionised the industry as more people are reaping the benefits of their use.

Benefits of Casinos and Players Using Cryptocurrency

Increased Security

Many people who gamble online fear that they may be at risk of their banking information being stolen by fraudsters. This year, Experian found that the surge of online gambling during the global pandemic increased online fraudulent activity. 

Anyone who understands how cryptocurrency works will likely know some of the benefits of blockchain technology. Blockchain can be defined as a database of information that records the provenance of a digital asset in a way that makes it very difficult to change. It is a digital ledger of transactions and provides an open database of every transaction involving value.

This makes using this technology extremely secure. Cryptocurrency is easy to track as each transaction comes with its own unique identifier code. However, it is impossible to manipulate these transactions because all digital currencies are encrypted. This ensures that payments made using blockchain technology are safer than traditional currencies. It also reduces an internet users’ chance of making unauthorised transactions. 

Anonymity 

Blockchain technology also offers users complete anonymity whilst they play. Because no identification is attached to a bitcoin wallet, players can feel secure knowing that nobody can obtain their personal information. Instead, they can focus solely on their games and not have to worry about other users seeing their progress. 

Online gaming also won’t have a negative effect on player’s credit scores or their chances of loaning money. Cryptocurrency will not be visible on any bank statements. When applying for a loan, banks will sometimes look through these statements to better understand spending habits. If they spot any gambling activity, they’re much more likely to refuse this loan. 

Speed 

One of the most frustrating issues a player faces when gambling online is the number of hurdles they must jump through to receive their money. This is especially true when their payouts are made from international businesses. SWIFT payments can take anywhere between 1-5 working days to receive casino payouts, resulting in many players turning to brick-and-mortar stores rather than playing online. 

Playing with cryptocurrencies such as Bitcoin, Ethereum or Litecoin prevents users from waiting long periods of time to receive their winnings. Cryptocurrency winnings are transferred into a player’s digital wallet instantly so players can spend their winnings faster.

Cost-Efficiency 

Because cryptocurrencies are decentralised, they do not have a governing body examining the validity of the transaction. When transactions are made with traditional currency, there are always additional costs and transaction fees required by banks. For example, if you use your credit card for gambling, you will be charged a cash advance. According to Finder, These transactions attract a cash advance fee between 3% and 5% and a high cash advance APR. This fee is considerably higher if it is an international transaction.

These additional costs apply both to the player and the casino. Gambling with cryptocurrency means that these fees are either removed entirely or significantly less. You can also convert this cryptocurrency into fiat currency without having to visit a bank. 

Final Thoughts 

The use of cryptocurrency is still widely debated. Some feel it is too unstable for the average investor; others believe it is the way of the future. But could the integration of cryptocurrency in online gambling be a perfect match? It would seem so.

Offering this payment option to players will allow online casinos to attract new clients and provide additional benefits to existing customers. In Addition, this digital currency appears to solve a lot of the problems facing the online gambling industry. Using cryptocurrency can be a faster, safer and more cost-efficient solution to both players and online casinos.