Friday, May 12, 2023
ThirdFi is a DeFi infrastructure middleware that connects traditional finance and Web3 finance in an effort to make DeFi available to everyone. One of its important advantages is its Fiat-to-Crypto integration, which enables developers to let their consumers buy cryptocurrency directly inside their own apps using fiat currencies via various payment options. In this blog post, we will dive deeper into ThirdFi’s Fiat-to-Crypto integration, its features, and how it can help bridge the gap between traditional finance and the fast-growing DeFi market.
Fiat-to-Crypto refers to the process of converting traditional fiat currencies such as USD or EUR into cryptocurrencies such as Bitcoin, Ethereum, or any other cryptocurrency. Fiat-to-Crypto transactions can be initiated via a cryptocurrency exchange, a peer-to-peer marketplace, or through a payment service provider that offers such services.
On-ramping, on the other hand, refers to the process of enabling users to purchase cryptocurrencies using fiat currencies. This can be done via various payment methods such as credit cards, bank transfers, or other local payment methods. ThirdFi provides an easy and seamless way for users to convert fiat currency into cryptocurrencies, on-ramping can be a powerful tool for increasing cryptocurrency adoption.
Fiat to Crypto Features
Multiple payment methods
Users can buy cryptocurrencies using various payment methods such as bank transfer, credit/debit card, and other local payment methods. This makes it accessible to buy from more than 100+ cryptocurrencies using 28+ payment methods.
Real-time exchange rates
The integration provides real-time exchange rates for buying cryptocurrencies with fiat currencies. Exchange rates are based on reliable sources from different exchanges.
Enhanced security
Users’ personal and financial information is kept safe through secure payment gateways.
KYC/AML compliance
The integration is compliant with KYC/AML regulations to prevent fraud and money laundering.
User-friendly interface
The integration provides a simple and easy-to-use interface for users to buy cryptocurrencies with fiat currencies.
Features Integrated into ThirdFi
As the decentralized finance (DeFi) market grows at an exponential rate, developers, fintech, and traditional finance companies are seeking ways to build, trade, invest, and manage their DeFi operations.
ThirdFi offers Fiat-to-Crypto (On-ramp) payment services with REST API. ThirdFi is an aggregator of payment providers and we provide a webview interface that can be integrated into any application via REST API. Transak is one of our providers which is used by us to make it easier for integration of fiat-to-crypto payments.
Fiat-to-Crypto integration is crucial for bridging traditional finance with the fast-growing DeFi market. It allows users to easily enter the DeFi market without the need for prior knowledge of cryptocurrencies. By enabling users to buy cryptocurrencies with fiat currencies, DeFi becomes more accessible to a broader audience, leading to increased adoption and growth of the DeFi market.
How We Integrate and Provide Solutions to Our Users
Integrating Fiat-to-Crypto integration with ThirdFi is a straightforward process, it just needs a simple API call to request the session URL.
Register for ThirdFi API credentials
Developers can register for ThirdFi API credentials by signing up on the ThirdFi dashboard.
Integrate ThirdFi API into the app
Developers can integrate ThirdFi API into their app to enable their users to buy cryptocurrencies with fiat currencies.
Use Widget UI
Developers can use the Widget UI to provide a seamless on-ramp experience for their users.
Verify User KYC
ThirdFi helps to verify the user KYC during the on-ramp payment services via the payment aggregator.
The flow is simple, User makes a request from the application and the application makes a request to ThirdFi API. ThirdFi responds back with a webview URL. Now the User has a secure connection between ThirdFi webview where the User can make the payments and get crypto.ThirdFi internally interacts with the payment providers and returns the transaction data to both users and developers.
Possible Use Cases
Below are some use cases that can be achieved by using ThirdFi API.
1. In-App Crypto Purchases
Developers can integrate ThirdFi’s API to enable users to buy cryptocurrencies directly within their apps using fiat currencies. This creates a seamless user experience by eliminating the need to use a separate exchange for crypto purchases. For instance, a mobile wallet app could incorporate ThirdFi’s Fiat-to-Crypto payments, allowing users to buy Bitcoin or other cryptocurrencies within the app using their credit card or bank transfer.
2. Remittance Services
ThirdFi can be utilized to send fiat currencies across borders quickly and securely. This is especially beneficial for remittance services, where individuals need to transfer money to family or friends abroad. With ThirdFi’s Fiat-to-Crypto payments, users can effortlessly convert their local currency to cryptocurrency, which can be sent across borders within seconds. The recipient can then convert the crypto back to their local currency if necessary.
3. Decentralized Finance
Integrating Fiat-to-Crypto payments can serve as a bridge between traditional finance and DeFi, enabling individuals to invest in decentralized finance protocols with ease. This can result in increased adoption of DeFi and a more accessible financial system for all. With ThirdFi’s Fiat-to-Crypto payments, users can conveniently convert their fiat currency to cryptocurrency, which can be used to invest in various DeFi protocols such as lending, borrowing, and yield farming.
4. Payment Gateway
ThirdFi can serve as a payment gateway for merchants interested in accepting cryptocurrency payments. This feature is especially advantageous for merchants looking to broaden their customer base by receiving payments globally. With ThirdFi’s Fiat-to-Crypto payment system, users can effortlessly convert their local currency to cryptocurrency, enabling them to make purchases from merchants who accept crypto payments.
5. Crypto-backed Loans
By incorporating Fiat-to-Crypto payments, users can easily collateralize their fiat currencies and obtain loans against their crypto holdings. This process offers prompt access to liquidity without the need to sell crypto assets. For instance, a user can deposit USD into ThirdFi, which can then be converted to USDT or other stablecoins. Subsequently, the user can borrow against their stablecoin holdings, using their crypto assets as collateral for the loan.
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