How does blockchain help in payments?

03 Oct 2022

PayCEC will first walk you through a simple example that will also explain what a blockchain payment is:

To make a payment, you must visit a bank, which acts as an intermediary between you and the recipient to validate the transaction. The problem with centralized banking systems is that the Federal Reserve, not the general public, controls the money.

Meanwhile, blockchain eliminates the need for a third party by utilizing distributed ledger technology, lowering the cost of each payment. This technology does not rely on a central server but on multiple copies of the blockchain (also known as nodes).

Here's how payments process on a blockchain payment gateway to help you understand:

• Your customers choose PayCEC to pay for a product or service.

• They use their payment gateway to pay for a digital invoice. This is typically a QR code containing the receiving wallet address as well as the required amount.

• They use the app to scan the QR code and confirm the payment.

• PayCEC converts crypto money from buyers to fiat currency, and deposits money in USD, EUR, GBP, or CAD to your account.

Read more:

• Crypto payment gateway
• Blockchain payment gateway