It is a common situation faced by many Forex brokers: the sales team have attracted an enthusiastic lead, compliance measures have been completed correctly, the lead is all set to deposit a significant sum to your brokerage, and you sit awaiting the incoming funds on the dashboard. But then, instead of seeing a sizable number update on the platform, you get “Transaction Declined”.
The following post is courtesy of Forex broker platform and technology provider Leverate.
The reasons are numerous. The transaction could be declined because of a client’s bank, his credit card company, or the law in the country of residence. The result is the same: your client cannot deposit funds in your brokerage’s account. Across the globe, regulatory frameworks have differing requirements, but even in more lenient regions, banks and payment service providers can implement stricter controls over different types of money transfer, classifying Forex trading and gaming as higher risk, and acting on those tighter controls.
We’ve heard the same problem time and again, from brokers on the brink of gaining a new client”, said Haim Machluf, Sales and Business Development Manager at Leverate, a prominent company in the provision of complete technical solutions for brokerages. “Clients have told us it happens several times a day. When it comes to taking advantage of market movement, there just isn’t time for a bank transfer. One client said he is losing over one million dollars a year because of this – to his competitors.
The financial world is changing, and that brings with it the ability to offer an alternative solution – cryptocurrency-based payments. Cryptocurrency enthusiasts has been promising a world without transaction boundaries since the inception of Bitcoin, but now that the cryptocurrency space and the blockchain have matured, there is finally a way to start providing safe, viable, and secure payment options through cryptocurrency.
A promising alternative is a newcomer to the stage, Terrexa Pay – a crypto payment solution that aims to end the woes of payment rejection for a number of industries hampered by stringent banking rules – not only Forex, but gaming and e-commerce too.
Many in the Forex industry share the experience that insufficient payment channels are operating in their regions – old-style methods like credit card and bank transfer are not servicing the needs of the businesses or the clients, and are quickly becoming “unfit” for purpose. This is where the alternative providers enter.
According to Oren Mizrachi, Leverate’s Director of Crypto:
Our advantage is that we understand the problems faced by our clients. We’re veterans in the field of providing solutions for financial institutions. Terrexa Pay is a solution to a problem faced by so many brokers.
Other solutions have been posited, such as centralized digital wallets, but they are costly and not in mainstream usage. Terrexa Pay is filling the space left by traditional payment channels for speculative businesses by automatically exchanging fiat to crypto to get all traders’ transfers through.
But not only does Terrexa Pay facilitate fiat-to-crypto deposits – it also allows for straight crypto payments for brokers who have Bitcoin-rich clientele. Terrexa Pay’s innovation is to provide full payer identification, and then inform the client in real time on his dedicated dashboard. As Oren says, “Brokers want to keep it simple, so we have taken the anonymity out of the cryptocurrency transfer.”
Terrexa Pay uses the broker’s extended public key (xPub) to allocate a unique address for each of the broker’s clients, allowing the broker to identify the source of the deposit immediately, rather than maintain constant phone contact with the client. The only step required of the broker is to seamlessly integrate a widget in the payments options screen of his website, keeping all payment options together, and making one as simple to use as the next.
Merchants, both online and high street, have been seeking a method of providing crypto payments for their customers, while e-commerce is growing at an astonishing rate. There is a strong possibility that alternate payment channels may begin to make traditional methods obsolete, cutting out the inherent costs of having so many middlemen.
Oren’s vision for Leverate’s new payment solution is ambitious:
In our vision for Terrexa Pay, we envisaged a universal payment system that would simplify and streamline our clients’ transaction processes for all of their payment streams: traditional channels such as credit/debit card and bank transfers, alongside cryptocurrency payments. We believe that the next step in the evolution of cryptocurrency will come from creating safe and stable payment solutions.