Have you been relying on banks and financial institutions to pay out funds to your global partners and customers? Accelerate the process and save more money by paying out in cryptocurrency. TripleA’s crypto payout facilitates the process of sending earnings, commissions, rewards, incentives, rebates, and more to your partners with crypto. The entire process is seamless and automated, from initiating a payout request to processing them and updating your partners on the availability to claiming their payments.
With Bitcoin’s price hitting an all-time high of around US$65k this year, cryptocurrency has become mainstream as a form of payment and investment. And this leads to people wanting to be paid in crypto. Companies like GMO Group, IM, and Bitwage have put their employees on a crypto payroll. Even Argentine soccer star Lionel Messi will receive crypto payment as part of his move to the French club Paris Saint-Germain (PSG). In this article, we will share in detail how crypto payout works and its benefits.
What is crypto payout?
Suppose you own a marketplace for freelancers, gaming developers, or stock photos; you will be familiar with paying out your partners through conventional payout methods such as bank transfer or credit cards. With crypto payout, you can eliminate operationally complex and manual processes like the collection of bank details. All you got to do is to integrate our crypto payout service onto your platform. Once your partners request a payout, they receive a notification asking them to input their crypto wallet address to receive payments.
Why pay out in cryptocurrency?
1. Self-serving payout system
TripleA’s crypto payout user interface is intuitive for marketplaces to pay out your partners and for your partners to request payments. Once your partner requests a payment, you will receive a notification email automatically. From there, you can keep track of the payouts conveniently through your dashboard. A complete payout history with transaction details is available for download through the dashboard. What makes it favorable is that your partners can choose to receive crypto payouts at any time when the rates are good.
2. Crypto payouts without border
Borderless payments through banks and financial institutions can be cumbersome as the involvement of multiple intermediaries increases processing time. Typically, payments through banks take approximately three working days, which might cause your partners cash flow problems. Crypto payout eliminates intermediaries from the payment processing, sending crypto payments straight to your partners’ wallets. With that, you and your partners don’t have to worry about settling in a specific currency and the differences in exchange rates.
3. Lesser volatility with stablecoins
Stablecoins are cryptocurrencies that attempt to peg their market value to some external reference. In recent years, there’s been an increased interest in the usage of stablecoins for cross-border business payments because of their stability. Receiving payouts in stablecoins eliminates the volatility associated with the other digital currencies.
4. Low fees
Wire transfer fees are generally between US$25 and US$30 for outgoing transfers to a bank account within the United States (US) and between US$45 to US$50 for transfers going out of the US (BusinessInsider). According to Ycharts, Bitcoin’s average transfer fee is just around US$3 per transaction, which means you get to save more by paying out with cryptocurrency. The concept is that crypto payment is “pushed” directly from one party to another without going through a financial institution; hence savings are made from the resources needed to sustain a financial institution. Recently, Revolut also decided to pay Wework membership in Bitcoin to save on international remittance fees.
5. Faster than bank transfers
A typical bank transfer takes approximately three working days, where Bitcoin’s average transaction time is just 10 mins, and Ethereum’s fastest transaction time was at 0.22 seconds. Sending and receiving crypto can be done in minutes with nothing more than a mobile phone. Because of the decentralized nature of cryptocurrency, payouts can be processed in a timely manner, achieving reliability and efficiency.
Offering an additional payout method provides your partners more choices and flexibility in receiving payments. Paying out in crypto optimizes your business, attracting more partners to work with you, boosting revenue. Marketplaces such as G2A, VPGame.com, and Vcreditos have benefitted from paying their partners using cryptocurrency. Book an appointment with us now if you would like to find out more about crypto payouts.