Presentation used by Konstantins Vasilenko giving a talk @ Riga Comm 2017 - Blockchain Conference about how Crypto currencies are being used as Payment method by businesses.

1. Crypto Currency as Payment
Method for your Business
Konstantins Vasilenko
COO, Co-Founder @ Paybis.com
Board Member of Latvian Blockchain Association
November 2017
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2. Paybis.com - get your First Bitcoin with our Help!
 Variety of Payment Methods
 Ease of Use
 24/7 Friendly Support
 Rest API
 100’000+ Customers
 Referral Program with amazing Promo Tools

3. We are going to talk about:
Accepting Crypto Payments
Sending Crypto Payments
Does it make sense for your business?
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4. Places that Accept Crypto Payments
1K – November 2013, 10k – November 2017
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5. Big Companies
AND SO ON…
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6. Popular Crypto Currencies used
as Payment method
300’000 tx/d
4.5$
11’000 tx/d
0.11$
6’000 tx/d
0.2$
25’000 tx/d
0.1$
400’000 tx/d
0.28$
Source: bitinfocharts.com
4’000 tx/d
2$
1’000’000 tx/d
0.01$
60’000 tx/d
0.00$6

7. Reasons to Accept Crypto Payments
 Lower Transaction Costs
 No Chargebacks, No Anti Fraud tools needed
 Easy to use and set up
 Offer diverse payment options to increase
your sales
 Generate publicity
 Cross Borders 7

8. Ways to Accept Crypto - 1
 Your Own Wallet with full Control over
private keys
+
 Full Control
 0 setup effort
-
 Subject to Price
Volatility
 Accounting Headache
 Invoice Management
 Convert to Fiat? 8

9. Ways to Accept Crypto - 2
 Integration with Bitcoin API (XPUB)
+
 Full Control
 Generate Unique Wallets
per Invoice/Customer
 3rd Party Services
available
 Small Setup Effort
-
 Subject to Price
Volatility
 Accounting Headache
 Convert to Fiat?
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10. How to Store Crypto?
Hot Wallet vs Cold Wallet
 Hot Wallets
Online & Connected to
Internet
Private Key on your
Server
API integration on Your
server
 Cold Wallets
Offline, Not Connected to
Internet
2 FA protected, MultiSig
Hardware
 Keep a small portion of every transaction in hot wallet (i.e. 10%)10

11. Ways to Accept Crypto - 3
 Integration with Bitcoin Exchange
+
Full Flexibility
Converting to Fiat
Little or 0 Fee
-
Less Control
Significant setup
effort
Invoice Management
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12. Ways to Accept Crypto - 4
 Integration with Crypto Merchant Services
+
 Flexibility Converting
to Fiat
 Easy setup effort
 Nice Looking Invoices
 Easy Accounting
-
 Less Control
 0.5%-1% transaction
fee
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13. Crypto Merchant Services
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14. Example Invoice
 Pay with one of
various Crypto
Currency
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15. Bitcoin Network Speed
Transaction Confirmation times
 ~3.5 Transactions
per second
 ~270k Transactions
per Day
 1 Block per 10
minutes
 2K transactions
per Block
 1 Block – 1 Confirmation15

16. Sending Bitcoin Transactions becomes
more and more Expensive
 To confirm within ~60 mins (6 blocks) fee has to be:
~220-230 satoshis/byte, 1 transaction is ~200 bytes
~44’000 satoshis or 0.00044 BTC
Bitcoin price 7500$ = 3.3$ per Transaction
 If number of Unconfirmed Transactions increases, fees also
Increase (i.e. 4-5$ easily)
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17. Transaction Confirmations Times
Why do I care?
 Wait for at least 1 Confirmation
to avoid Double Spending attacks
 Lower transaction Fee’s > longer
1st Confirmation time > longer
waiting time for customer
 Instruct Customer on
Recommended Fees
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18. Instant Bitcoin Payments
 0 confirmation Bitcoin Payments
 ~0.1% Fee per transaction
 Warranty
 Confidence Factor API
 Free to use
 At own Risk
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19. Bitcoin Compliance?
Are you obliged to perform AML/KYC?
Bitcoin Payments are Pseudo
Anonymous
Track and Analyse
Source of incoming Bitcoin
payments
Destination for outgoing
Bitcoin payments
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20. Altcoin payments become more
and more popular
Faster Block times
Cheaper transactions fees
Easy Services to convert
Bitcoin to Altcoins
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21. Pay your customers with Crypto!
1 transaction per 1 Customer/Payout
+
Quick Payments
Easy to setup
-
High Bitcoin
Transaction Fee’s
(3-4$)
Hot Wallet
integration 21

22. Pay your customers with Crypto! - 2
 Save up to 80% on Bitcoin transaction fees by
batching payments
+
 Save on transaction
fee’s
 Possible to integrate
with Cold Wallet
-
Complex to setup
Longer wait times
(queuing)
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23. Transaction Stuck?
 Use Replace By Fee option
 Accelerate Bitcoin
Transaction!
Free Acceleration
Extra $$$ to miners to
include your transaction
in the next Block!
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24. Conclusions
 Crypto currencies are still in very early
stage of development despite 200$B market
cap (i.e. Apple market cap is ~800$B)
 Crypto Adaption is growing
 Bitcoin becomes too expensive for micro
payments
 Regulation time!
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25. Thank You!
Konstantins Vasilenko
COO, Co-Founder @ Paybis.com
Co-Founder, Board Member @ Latvian Blockchain Association
k.vasilenko@paybis.com
https://www.linkedin.com/in/konstantinvasilenko
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