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Education

What does cryptocurrency points of acceptance increase, the more important
cryptocurrency will become to ISOs. So what do you
mean for ISOs? need to do in the meantime? As an ISO, educate yourself
on the basics of cryptocurrency and how and why the
technology is relevant. Also understand that blockchain
is not cryptocurrency; it is the technology upon which
cryptocurrency is built.

The reason to be up to speed on this is not that you will need
to educate your customers regularly; you will, however,
need the knowledge for times when customers do ask you
for information on cryptocurrency acceptance. If you are
representing yourself as the payments expert, it's best to
be well versed on all emerging payment technologies such
as near field communication; EMV (if you include that as
emerging); cryptocurrency, person-to-person options and
faster payments.
Choosing cryptopayment options
By Jordan Olivas So let's say you really want to offer cryptocurrency
RS Software Inc. acceptance to your merchants. What do you do? First,
identify why you want to offer this. Do you believe it
ryptocurrency isn't a significant factor for ISOs is the next big wave in the payments space? Maybe you
yet. Talk abounds in the industry about how serve the high-risk sector, and this would help some of
cryptocurrency will alter the way we exchange your merchants move their businesses forward. Whatever
C the value of goods; however, the traditional the reason, it's important not to take a shotgun approach.
merchant services model has the advantage and appeal of When focusing on a new type of payment, you must have
widespread acceptance. an extremely targeted pitch, one that is uniquely tailored
to a predetermined group of people.
When you go to a store, you expect to be able to pay with
any major form of credit card via the major card networks. When it comes to accepting cryptopayments, you have
When a payment is sent, all parties are in agreement that a few options. The first, and most obvious, is to partner
the form of value will be money in whatever currency that with a POS or software provider to resell that company's
has been determined. In essence, the customer, merchant, solutions. This should be a familiar route for most ISOs, so
acquirer, network and issuer expressed consent ‒ prior to I won't spend time explaining it.
the transaction ‒ that they will accept certain currencies.
With cryptocurrency, acceptance is not widespread. It is, The second, and preferred, is to build something yourself.
however, gaining traction. If you do not have a technical team that is able to develop
Bitcoin, Ripple and others it, you may partner with an organization that can build
a terminal-based application or even build out an entire
I'm sure you've heard of various types of cryptocurrencies, POS solution. The reason this is preferred is that it gives
including bitcoin and Ripple XRP, but you may not you complete control of the merchant experience while
know how they differ. Although there are extreme maximizing your profits, since you will not have a buy
differences in how each one ends up in the hands of the rate.
consumer ‒ technology differences, and so on ‒ think of
the various cryptocurrencies as distinct currencies. It is The second option also allows you to resell your solution
cryptoCURRENCY, after all. to other ISOs, which can propel your organization in
the direction of massive growth. It also sets up your
The main cryptocurrency that ISOs should be concerned organization to become more of a technology company,
with is bitcoin. Why? Because it has the highest amount which will push operational efficiencies and offerings to
of acceptance as a payment method within the payments a higher level.
ecosystem. Many of the large online and in-store retailers
accept bitcoin as payment, including Microsoft, Expedia, Jordan Olivas is a Director at RS Software Inc., a company that helps
Newegg, Wikipedia, eGifter and many others! ISOs, banks, terminal, acquirers and bill pay companies become tech-
Merchants and cryptocurrencies nology leaders in the payments space by increasing margins and opera-
tional efficiency through custom software. development, gateways, EMV
As cryptocurrency continues to evolve, more points certification, consulting, merchant boarding solutions, and testing tools.
of acceptance will pile onto the ecosystem. As those He can be reached at jordan.olivas@rssoftware.com.

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