The transaction fee of a cryptocurrency payment processor is vital to the service provider and its users. As the world moves toward efficiency, crypto transfers should be no different.
With blockchain tokens becoming more popular, crypto payment gateways must offer more competitive transaction fees. This is particularly true for microtransactions, as nobody should pay excessively for sending and receiving small amounts.
Without a doubt, most people have yet to adopt crypto for transfers because of the cost of sending and receiving it. This article will examine how a cryptocurrency payment processor sets its fee structure.
There are different ways through which a cryptocurrency payment processor can set its fees. Some of these measures include the following:
Most crypto payment solutions may choose to adopt just one of these measures or a combination of two or more.
Tectum and SoftNote combine percentage charges with flat fees. Users are charged a minimal 0.5% whenever they transfer blockchain tokens or SoftNote Bills using our crypto payment solution. However, there is a catch.
Tectum does not charge users more than $1, regardless of the amount they are sending or spending. This means that people will pay the regular 0.5% fee for every transaction, as long as it does not exceed $1. Once the fee reaches $1, the system disregards the 0.5% principle and applies the $1 fee instead.
Low transfer fees are essential if crypto is to be used for everyday transactions and microtransactions. The current fee structures of most cryptocurrency payment processors are more suitable for institutional payments than for the average person. These large corporations can afford to pay significant amounts in transaction fees.
On the other hand, the average person makes multiple payments daily and would quickly become concerned about paying significant amounts in fees. Considering this, it is critical that crypto payment processors ensure the lowest possible rates.
