KUNA Pay offers several features, all of which allow you to accept crypto payments with confidence. But perhaps the least understood of the features on our cryptocurrency acquiring platform is the corrective coefficient – so on this page, we’ll break it down and let you know exactly what it’s all about.
What is the Corrective Coefficient?
Understanding the corrective coefficient is very important for anyone looking to protect against the volatility of cryptocurrency. It’s a mechanism used to alter the value of a cryptocurrency during a transaction. This is vitally important, as many cryptocurrencies are highly volatile. The corrective coefficient allows you to manage any fluctuations in price. So, you won’t need to worry about Bitcoin dropping by 2%, for example, as you’ll have already set things up to manage this fluctuation.
How is the Corrective Coefficient Determined?
Here’s the great thing: there’s no external factor that sets your corrective coefficient. Instead, you’re free to set it to anything you want, providing it doesn’t come in at over 10%. To set the corrective coefficient on a range of cryptocurrencies, just head to the Settings section of the KUNA Pay dashboard.
Why Use a Corrective Coefficient?
There are several reasons to implement a corrective coefficient when you accept crypto payments. Let’s look at them below.
Real World Alignment
The corrective coefficient ensures crypto is more closely aligned with real world prices. But what does this mean? Well, it means that consumers can more easily compare fiat and non-fiat prices and understand their purchasing power.
Stability
Sudden changes in the value of crypto can be exceptionally damaging to a merchant, causing them to earn less money than they would have done if the value had remained the same. The corrective coefficient adds stability, making accepting crypto payments much less risky for merchants.
Fairness
Quite simply, it’s not fair on merchants when the price of crypto suddenly changes, causing them to lose money. By adding a corrective coefficient, fairness is restored, ensuring merchants always receive a fair price for their goods or services. It also makes sure consumers don’t underpay or overpay, giving them more confidence when making purchases using cryptocurrency.
Promotion of Crypto
By removing one of the biggest hurdles for merchants, there will be an increase in the uptake of crypto as a payment option. This wider acceptance of crypto will further improve its reputation and therefore encourage even more consumers to make purchases using cryptocurrency.
As you can see, the corrective coefficient feature is a vital aspect of the KUNA Pay cryptocurrency acquiring platform. If you’ve got any questions about it, or any other KUNA Pay feature, please don’t hesitate to get in touch.
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