Volatility: a risk for business and limitations of banks

• Sudden price drops
  They present a significant threat to business. Sometimes the value of digital assets like Bitcoin or Ethereum can fluctuate by 5–10% within a day. Delays in payment withdrawals can lead to direct losses in margin.

  
  

• Long banking cycles
  An international SWIFT payment takes 2–5 business days, and its cost easily exceeds 3% of the amount. According to research by the international audit and consulting company PwC, the global banking sector spends $15–$25 billion annually just on reconciling cross-border payments; in the US alone, failures and refusals in banking cross-border payments cost vendors $3.8 billion in 2023, with an average unsuccessful transaction rate of 11%.

• Chargebacks.
  Payment refunds also pose a serious risk to business. Card disputes consume up to 0.4% of online retail turnover and are entirely borne by the seller.

The combination of these factors makes the volatility of cryptocurrency not the only, but the fastest threat. Therefore, terms such as "cryptocurrency acquiring" and "cryptocurrency processing" are increasingly heard in professional circles — solutions that handle the acceptance of digital assets and immediately exchange them. These services are specifically designed for businesses, taking into account their needs.

How automatic cryptocurrency conversion works

1. The client pays the invoice in any supported coin — Dogecoin, Ton, USDT, etc.

2. The processing captures the exchange rate and initiates the smart contract for auto-conversion.

3. At the same moment, the asset is automatically sold on the exchange or exchanged through an integrated liquidity pool.

4. If the final rate deviates by more than the set threshold (for example, 1%), the transaction is canceled — the risk remains zero, and the business incurs no costs. This working mechanism has proven effective in many cryptocurrency processing services.

5. The company receives stablecoins (USDT, USDC) or fiat into its account (taking into account the cryptocurrency processing fee of 0.5–2%).

This solution ensures effective currency risk management, fully transferring the problem of cryptocurrency volatility to the payment infrastructure, not the business.

Let's examine practical cases of implementing auto-conversion in business:

• Retail in Ukraine: payment for equipment with cryptocurrency

In April 2023, the electronics chain Foxtrot introduced< the ability to pay for goods with cryptocurrency using the Whitepay platform. This allowed customers to pay with digital assets both in offline stores and on the official website, ensuring convenience and expanding the range of available payment tools. The payment is fixed for 15 minutes, immediately converted to fiat or stablecoin, and credited to the merchant within a day, which reduced the cost of acquiring from approximately 2.5–3% to > the ability to pay for goods with cryptocurrency using the Whitepay platform. This allowed customers to pay with digital assets both in offline stores and on the official website, ensuring convenience and expanding the range of available payment tools. The payment is fixed for 15 minutes, immediately converted to fiat or stablecoin, and credited to the merchant within a day, which reduced the cost of acquiring from approximately 2.5–3% to < 1%, completely eliminating chargebacks and accelerating working capital compared to bank cards. The integration of the cryptocurrency payment system on the website became a competitive advantage.

• Travala: success of cryptocurrency payments in the travel business

The international travel service Travala successfully implemented cryptocurrency acceptance on its site by integrating a modern cryptocurrency payment gateway. This strategy allowed the company not only to expand its customer base but also to significantly increase revenue, confirming that cryptocurrency is legitimate and effective for business.

This approach demonstrates how payment in digital currencies is capturing an entire industry. In October 2023, 77% of all bookings (amounting to $5.1 million) were paid with cryptocurrencies, with USDT leading among them. This coin is a stablecoin, so accepting payments and subsequently paying in USDT is effectively equivalent to working with the dollar.

This case is notable as it shows how, even in the high-margin travel segment, companies are willing to transition en masse to this format if the conversion is automatic and transparent.

What does this provide for your business?

• Hedging risks: automatic conversion translates volatile coins into stablecoins in fractions of a second.

• Zero exposure to the rate: the rate is fixed before the payment reaches accounting.

• Low fees: most services charge a fee of up to 2% and process over $1 billion in payments annually, paying merchants fiat or stable cryptocurrencies daily.

• Instant international settlements and instant cash flow: entering new markets without waiting for banking correspondent transfers. Revenue is received in minutes rather than several banking days.

• No chargebacks: transactions are irreversible, which reduces costs on risk management.

• New audience: technologically advanced users are a solvent segment that values modern payment methods.

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How to avoid volatility

1.       Choose partners with auto-USDT/USDC conversion. The feature should be enabled in the personal account without a code.

2. Fix the rate at the invoice stage: this eliminates the risk that the client will pay "slowly" and the price will go away.

3. Diversify withdrawal options: keep part of the turnover in stablecoins for operational calculations and withdraw to fiat as needed.

4. Check AML filters: this is important for jurisdictions where payment with cryptocurrency in Russia and other countries is regulated. Read more about AML in the article.

5. Do not delay implementation: the later a company integrates USDT acceptance on the site, the harder it will be to catch up with competitors who have already optimized fees.

   
   

Conclusion

Automatic conversion has already proven its effectiveness, from local online stores to global services like Travala or Coinbase Commerce. This tool eliminates the risks of unexpected price drops, accelerates the cash cycle, and expands the customer base. For B2B companies, it is a direct route to reduce operating costs and enter the international market without bureaucratic expenses. A significant advantage is the absence of chargebacks, the transparency of blockchain, and instant fund withdrawals. It becomes clear that the automatic exchange of cryptocurrency for stable assets is not just "the benefits of cryptocurrency" but a specific competitive advantage that is already reflected in the company's P&L today.