In the crypto world, there are a variety of different currencies that are used. Bitcoin is the original and most well-known, but many others have been created in recent years. One of these is USDT, which is essentially a “stablecoin” that is pegged to the U.S. dollar. This makes it a desirable payment option, as it eliminates the volatility associated with other cryptocurrencies. This article will discuss why you should consider a USDT payment method. For those wondering how to accept USDT payments, we will also discuss how to set up a crypto payment gateway on your website.
Why Should You Accept USDT Payments?
USDT is a cryptocurrency asset issued on the Bitcoin blockchain via the Omni Layer Protocol. Announced in 2015, USDT aimed to provide a stable cryptocurrency that can be used like U.S. dollars for everyday transactions.
Since U.S. dollars back USDT, its value should theoretically remain stable. In practice, however, USDT has been subject to value fluctuations due to mismanagement and manipulation.
USDT is commonly used to buy other cryptocurrencies, especially on cryptocurrency exchanges that do not accept fiat currencies. USDT can also be used to store value or send and receive money globally.
DeFi (Decentralized Finance), which uses smart contracts on blockchains, is greatly aided by stablecoins. The stablecoin market value reached $167 billion by December 2021, up from only $5 billion in 2019. Stablecoins grew by 388% in 2021, making up 6.68 percent of the total crypto market capitalization of $2.49 trillion.
There are many reasons to set up a USDT payment system and accept USDT payments. Some of them are:
Stablecoins are a fantastic method of trade and communication for those who don’t have easy access to traditional financial institutions, such as those living in remote places or those who are unbanked. Stablecoins have a significant impact in terms of quick, low-cost payments due to their accessibility and ease. Stablecoins have recently been utilized as a method of help for communities hit by natural catastrophes to buy products, especially in light of the pandemic. It was especially helpful in areas where getting to a bank was a burden since it meant no one had to walk around with large amounts of cash.
- International Payments
Stablecoins simplify the adoption of innovative DeFi financial services for end users. Payments made using USDT avoid the problems of slow processing times and frozen funds. In addition to saving time and money, having the option to pay in USDT benefits companies that often deal with customers and partners in other countries. Wiring money internationally may be a hassle and an expensive hassle in nations with less established banking systems.
- Transaction Fees
Exchanges often charge steep fees for making a transaction. Using a fiat currency makes it more expensive because of the percentage added to the transfer and the price for foreign exchange. When transferring funds between two Tether wallets, there are no costs. Because of this, consumers use USDT as a medium of exchange and investment due to the absence of any transaction fees. Those who are paid in cryptocurrency have an additional incentive to avoid the 7% fee that is often applied to regular remittances sent by migrant workers and international employees.
- Transaction Time
In the conventional banking system, processing times for U.S. deposits and withdrawals typically range from one to four business days. For crypto users, the ability to complete transactions in minutes rather than days is a major benefit of Tether. In addition to being a popular choice among users, this approach is also helpful for individuals who lack ready access to traditional financial services.
- Price Stability
USDT is accepted as a fiat currency alternative on many exchanges because of its steady and predictable pricing. The cheaper transaction charge associated with cryptocurrency makes it attractive to many companies. If you are concerned about the volatility of your cryptocurrency transactions, USDT may be your best bet.
These are only some of the reasons to accept USDT payments. As the stablecoin market grows, we can expect more reasons to emerge.
Setting Up a USDT Payment Gateway
Now that we know some of the reasons to accept USDT payments let’s go over how to set up a USDT payment gateway.
The first step is to find a reputable stablecoin exchange. Some of the most popular ones are Binance, Kraken, and Bitfinex. Once you have chosen an exchange, you must create an account and verify your identity.
After you have set up your account, you will need to deposit USDT into your wallet on the exchange. Once you have done this, you can start trading or making payments with USDT.
To set up a payment gateway, you must generate a Q.R. code for your USDT address. You can do this by using a service like Blockchain.info or BitPay. Once you have generated your Q.R. code, you will need to add it to your website or app.
When someone wants to pay you in USDT, they will scan your Q.R. code and send the payment to your USDT address. The payment will then appear in your exchange account, and you can withdraw it to your bank account.
As mentioned, there are many benefits of accepting crypto payments. Stablecoins offer an easy way to send and receive international payments, avoid high transaction fees, and enjoy quick transaction times. If you are looking for a way to accept payments in cryptocurrency, USDT may be the right choice for you.