One of the main crypto benefits everyone is talking about is low transaction fees. But when it comes down to it, it turns out that the most popular cryptocurrencies, for example, ETH or BTC, do not provide such tempting conditions, especially during network congestion periods. Fortunately, NOWPayments is here to help. With our autoconversion feature, you can accept more than 100 cryptocurrencies and not overpay on fees. How? Find out in today’s article.
Key points:
- Autoconversion is a win-win solution that allows you to increase profits and retain customers.
- NOWPayments provides a Network Fees Optimization feature that helps merchants save on fees.
What is autoconversion?
Autoconversion is an automated process of converting one cryptocurrency into another. In simple words, with the help of autoconversion, you can accept payments in your favorite coin (or several) while not narrowing the circle of potential customers. For example, you are an ardent fan of nano, but your client wants to pay with ETH. NOWPayments accepts ETH payment without problems, converts the amount into XNO, and sends it directly to your crypto wallet. The crucial point is that merchants can significantly save on network fees while at the same time not limiting their consumers to one payment option.
How autoconversion helps you save on network fees
There are many rules that must be followed to get a thriving business. Depending on the focus, they may vary, but the two remain unchanged and serve as the building blocks of any successful business:
- Your profit should more than recoup the costs.
- Your customer base should constantly grow.
Cryptocurrency can help boost your business, as it fits perfectly into both rules. Today, more than 300 million people from different parts of the world use cryptocurrency, each of which is your potential client. People love cryptocurrency not only because it is borderless but also allows for cost-effective and fast transactions. But unfortunately, some coins have become so popular that they cannot withstand the load, as a result of which their networks experience congestion and increased fees. On the other hand, there are many cryptocurrencies with low network fees that you can use for your business.
NOWPayments provides a network fee optimisation feature that allows merchants to significantly save on network fees while not limiting their customers to only one or several cryptocurrencies thanks to autoconversion. Therefore the solution has the following advantages:
Saving profits
Thanks to autoconversion, you can accept more cost-effective cryptocurrency, thus saving on network fees and getting more profit for further business development.
NOWPayments charges 0.5% for mono-currency payments and 1% service fee for multi-currency payments. Here are some examples:
- Mono-currency payment. You have added payment wallets of several popular coins (for example, ETH, BTC, and so on). The client pays $100 in ETH, and the payment is sent to your ETH wallet. To date, the fee will be:
Network fee: $2.38 + $2.38
Service fee: 0.5%
Total fee: about $5.26
- Multi-currency payment. The client pays $100 in ETH. NOWPayments picks the most cost-effective coin from the list of wallets provided by you. For example, USDTTRC20:
Network fee: $0.06 + $0.06
Service fee: 1%
Total fee: $3.44
Retention and attraction of customers
Cryptocurrency implies freedom and convenience. But if you limit your customers to only one payment option, force them to convert their favorite coin for another, and spend money and time on conversion, they are more likely to go to more customer-oriented merchants.
Convenience
Let’s say you are an IOTA fan, believe in the project’s success, invest part of the profits, and so on. But at the same time, IOTA is not the most popular payment option, although it allows you to save on fees significantly. You have two options: either accept only IOTA payments from a narrow circle of people or accept other crypto and independently convert them into a coin of your choice. With NOWPayments, there is a third option: accept more than 100 cryptocurrencies with autoconversion to your favorite without wasting precious time and money.
To activate the autoconversion feature, you need to perform the following steps:
- Log in to your NOWPayments account.
- Decide on the payment coins. Go to the “Store Settings” section and add the addresses of the crypto wallet/wallets to receive payments.
- Scroll below and activate the “Network Fee Optimization” feature.
- That’s it! As soon as your customer makes the payment, NOWPayments automatically pick the most cost-effective coin among the ones provided by you, converts the payment, and sends it to your wallet.
Conclusion
Even though cryptocurrency is an efficient payment tool that allows you to attract more customers and overtake competitors, transaction fees of some coins can affect the overall profit. Fortunately, with NOWPayments, you can solve this problem with one click by activating the Network Fees Optimization feature.