The emergence of cryptocurrencies has created a new payment system in commerce and trade. Although many people use cryptocurrencies, the majority have not yet adopted their use in their daily lives.
As you can see, two divisions of consumers have emerged. There is a group sticking to the use of fiat currency only while another has adopted the use of both fiat money and cryptocurrencies. One of the main reason for this situation is the difficulty and cost of converting cryptocurrencies to fiat currency and vice versa.
This is because of the gap between the centralized and decentralized finance systems. One of the weaknesses of smart contracts has been their inability to connect natively with the centralized financial system, meaning that they are not able on their own to interact with the fiat payment gateway. It is on the backdrop of these difficulties that Transak has come up with an innovation, enabling conversion of fiat currency to cryptocurrencies and vice versa, with convenience and at a low cost.
Transak is an exchange of fiat currency to cryptocurrency and vice versa, a platform where people can buy cryptocurrency using fiat money. At the same time, others sell their cryptocurrency for fiat money. In other words, Transak’s API provides a fiat-to-crypto payment gateway.
With this application, users can use debit cards and other payment processors to buy cryptocurrencies. They can also use wire transfers to purchase cryptocurrencies of their choice.
Transak offers these services globally, although some countries are not yet catered for. Currently, European and Asian countries, among others, can access this service. However, Transak is working around the clock to meet the global demand for a direct fiat-to-cryptocurrency exchange interface.
How does Transak work?
Transak works with various payment processors and other financial institutions such as banks. These financial institutions are the providers of liquidity to the Transak smart contracts. The applications of these financial institutions integrate the Transak’s API with their software packages.
It is this integration that enables the conversion of fiat currency to cryptocurrencies. The conversion rates are derived from pricing feeds, centralized exchanges, over-the-counter desks (OTCs) and Decentralized Exchanges (DEX) around the world such as Binance, ChangedNow, KuCoin and Swaplap. Transak platform supports many fiat currencies including Indian Rupee, GBP and US Dollar. On the hand, it is supporting over 300 cryptocurrencies. Examples of cryptocurrencies that are supported are BTC, XRP, LTC, EOS, and BNB.
The success of Transak is based on its business model, where it partners with strategic companies. It has created strategic partnerships with Verasity, AAVE, Edge, Coinswitch, Parjar Wyre and Chainlink, among many others. For instance, Chainlink, the market leader in decentralized oracle network, helps to make the fiat/crypto ramp aggregator solution available to smart contracts. It is Chainlink that makes it possible for Transak’s API to trigger on-chain Transactions using DeFi protocols.
The partnership with SiaStream enables its clients to use different payment methods, involving more than 32 fiat currencies. On the other hand, collaboration with Wyre makes it possible for customers to use debit cards to purchase cryptocurrencies.
The point is that Transak’s strategic partnership has resulted in the transformation of the global payment system. It has also enabled the conversion of cryptocurrencies to fiat currency and vice versa. This innovation is most likely leading to more worldwide acceptance and use of cryptocurrencies.
What’s the take?
Transak’s technology makes it possible to convert fiat money directly into cryptocurrency. Many countries are already using its service globally. All in all, Transak’s innovation has resulted in broader adoption and use of cryptocurrencies in trade and commerce.