Case Studies, Crypto Payments
Empowering Bacloud with Cryptocurrency Payment Solutions
Last updated: January 18, 2024 12 min read
Bacloud, a professional web hosting service provider and data center operator, has been at the forefront of delivering powerful hosting solutions and custom infrastructure since 2006.
With a focus on stable technology, attractive pricing, and flexible support, by now Bacloud has carved out a significant presence in the global IT landscape.
But it’s not a reason to stop improving. In their pursuit of innovation and adaptability, Bacloud came to recognize the growing importance of cryptocurrency as a payment method, seeing it as a way to further enhance their services and meet the evolving needs of their diverse clientele.
In this pursuit, Bacloud discovered our team at CoinGate, running a cryptocurrency payment processor with a wide range of services, operational efficiency, and ease of integration, as our clients point out.
Our expertise in bridging the gap between traditional financial systems and cryptocurrencies made us the ideal partner for Bacloud, and so in 2017, Bacloud started to accept cryptocurrency payments through CoinGate.
This case study explores the integration of our payment solution into Bacloud’s operations, highlighting the impact and advantages for their business. We hope it will sufficiently illustrate the effectiveness of our solutions in enhancing several aspects of business operations.
Bacloud’s Selection of CoinGate for Payment Processing
When Bacloud was exploring options to integrate cryptocurrency payments, CoinGate emerged as the fitting choice.
Their decision was influenced by the specific needs of their clientele and the evolving market demands. “Our own clients and their needs encouraged us to accept crypto payments. It is a convenient method of payment that offers certain advantages for both the buyer and the seller,” explains Andrius Petkus, the CCO of Bacloud.
Selecting CoinGate was driven by our diverse range of services and the adaptability of our platform to meet various client requirements. “We chose CoinGate because of the wide spectrum of cryptocurrencies and the platform’s flexibility for our clients,” Petkus further elaborates. This was a crucial factor for Bacloud, as they were transitioning from a Bitcoin-only payment system to a more inclusive cryptocurrency payment model.
At this moment, CoinGate accepts 70+ cryptocurrencies and tokens over several networks, including Binance Smart Chain (BSC), Ethereum, and 2-layer protocols Polygon and Arbitrum. Learn more about it in this article.
Petkus also highlighted the practicality of our system, especially in terms of currency conversion and banking processes. “Another important aspect is the automatic conversion of currency into euros and easy transfer to a bank account.” This feature of CoinGate’s services aligned well with Bacloud’s aim to streamline their payment processes and enhance their operational efficiency.
It’s not the first time we see businesses highlighting benefits of having a payment processor ease up burdens of switching between two monetary systems or dealing with currency conversion. In our previous case study, we showcase how DappRadar solved their crypto-to-fiat conversion issue and many other inconveniences, be sure to check that out.
But Bacloud’s decision to use crypto payment processors was a strategic move to address their client’s evolving payment preferences and to harness the benefits of the broader cryptocurrency market, facilitated by the convenience and flexibility of crypto payment processors.
Streamlined Crypto Payments Integration Process
The integration of CoinGate’s cryptocurrency payment services into Bacloud’s system was a testament to our emphasis on user-friendliness and efficiency. Petkus details this experience, shedding light on the simplicity of the process: “The entire integration process was limited to activating the module in the management system and linking it with the CoinGate API.”
He further underscores the quick and hassle-free nature of the integration. “The whole process took about 15 – 20 minutes,” says Petkus, showing that merchants can swiftly adapt to new payment methods without major disruptions to their existing operations.
Petkus also noted the convenience of incorporating CoinGate’s services into their existing infrastructure. “Since we use a commercial service management solution, integrating CoinGate was very straightforward. There was already an existing module for this purpose,” he explains. This compatibility with existing systems is a crucial aspect of CoinGate’s services, as it ensures seamless integration, which many seek.
The streamlined integration of our payment system not only demonstrates the user-centric approach crypto payment processors have these days but also Bacloud’s readiness to embrace innovative solutions, making the transition to cryptocurrency payments smooth and effective.
Direct Impact of Crypto Payments on Bacloud’s Success
The adoption of CoinGate’s cryptocurrency payment solutions has had a profound and multifaceted impact on Bacloud’s business operations. Andrius Petkus sheds light on the significance of this shift: “Crypto payments are an entirely new market and new clients, which we would not be able to reach if we did not accept these payments.” This statement encapsulates the broadening of their market reach and client base as a direct result of integrating cryptocurrency payments.
Petkus further elaborates on the growth and diversification benefits, “This significantly contributed to increasing the company’s recognition and revenue growth not just in Lithuania but also in our other locations – the USA, the Netherlands, and the United Kingdom.” The introduction of cryptocurrency payments has clearly been a smart move in Bacloud’s global expansion strategy.
He also touches upon the aspect of client trust and business reputation. “Based on the trust of our clients, we are expanding our market position globally every day,” says Petkus. This highlights how adopting innovative payment solutions has reinforced Bacloud’s position as a forward-thinking and client-responsive company.
Integrating cryptocurrency payment solutions has been significant in Bacloud’s business expansion, client base growth, and enhanced market presence, signifying that payment method diversification can be more than just extra convenience for the customers.
Benefits of CoinGate’s Payment Processing Services
The adoption of CoinGate’s cryptocurrency payment services brought specific, tangible benefits to Bacloud, enhancing their overall business model. Andrius Petkus delves into these advantages, highlighting the key aspects of our service that made a significant difference.
Earlier, Petkus emphasized the importance of expanded payment options. This variety in cryptocurrency choices allowed Bacloud to cater to a broader range of customer preferences, making their services more accessible and appealing to a diverse client base.
He also points out the operational efficiencies gained: “Another important aspect is the automatic conversion of currency into euros and easy transfer to a bank account.” This feature of CoinGate’s services simplified their financial processes, reducing the complexity often associated with cryptocurrency transactions.
Moreover, Petkus notes the innovative edge it provided: “We were one of the first hosting companies in the world to offer the Bitcoin Lightning network payment option.” By adopting this cutting-edge technology through CoinGate, Bacloud not only stayed ahead of the curve but also demonstrated its commitment to leveraging the latest advancements in the field.
And it paid off. According to our findings in the 2023 crypto payments adoption report, payment volume through Lightning Network rose by 35.9% compared to 2022, and accounted for 7.8% of all Bitcoin payments that year, meaning roughly every 14th Bitcoin transaction made using CoinGate utilized the Lightning Network technology.
The specific benefits of cryptocurrency payment services to Bacloud include a wider range of payment options for their clients, streamlined financial operations, and a strengthened position as a technology-forward company in the hosting industry.
Engaging Customers with New Payment Options
Bacloud’s introduction of cryptocurrency payments, facilitated by CoinGate, significantly influenced their customer engagement strategy. Andrius Petkus sheds light on the customer response and the company’s approach to introducing this new payment method.
Petkus reflects on the initial reception: “Like every new market – initially, clients explore and inquire, trying to ensure that we are a reliable, operating company.” This response highlights the natural curiosity and cautious optimism of customers when faced with innovative payment options.
He also speaks about the evolving customer perception and acceptance: “Having tried the services, they recommend us to others, so a large part of our clients reach us through the recommendations of other, existing clients.” This word-of-mouth endorsement underscores the positive impact of CoinGate’s cryptocurrency solutions on customer satisfaction and trust.
Furthermore, Petkus discusses their promotional efforts: “We provide information on our website that we accept Bitcoin and other cryptocurrencies. We also participate in various crypto discussion forums and are active members.” This proactive approach in communicating their adoption of cryptocurrency payments has been key in educating their clients and attracting a tech-savvy audience.
The introduction of a sophisticated cryptocurrency payment system has not only expanded Bacloud’s payment options but also enhanced their customer engagement and marketing strategies, leading to increased customer trust and expanded market reach.
Popular Cryptocurrencies Used Buy Bacloud Services: A Breakdown
A significant aspect of Bacloud’s transition to cryptocurrency payments through CoinGate is the diversity of cryptocurrencies used by their customers.
Understanding the popularity and usage of different cryptocurrencies can offer valuable insights into customer preferences and market trends.
Here’s a breakdown of the most popular cryptocurrencies that customers have used over time to pay for Bacloud services:
- Bitcoin (BTC) – 82.2%: Dominating the landscape, Bitcoin remains the most used cryptocurrency on Bacloud, accounting for a significant 82.2% of all crypto transactions. Its widespread acceptance and strong market presence make it the preferred choice for the majority of Bacloud’s clients.
- Tether (USDT) – 5.7%: As a stablecoin pegged to the US dollar, Tether holds a notable share of 5.7%. Its stability in value compared to other volatile cryptocurrencies makes it a popular choice for those seeking consistency.
- Litecoin (LTC) – 4.2%: Known for its faster transaction times compared to Bitcoin, Litecoin accounts for 4.2% of the transactions. It’s favored for its efficiency and lower transaction costs.
- Ethereum (ETH) – 3.1%: Ethereum, the leading platform for decentralized applications, contributes to 3.1% of the crypto payments. Its broader functionality beyond just a currency appeals to a tech-savvy clientele.
- Tron (TRX) – 2%: With 2% usage, Tron is recognized for its high throughput and scalability, making it a preferred choice for certain tech enthusiasts.
- Bitcoin Cash (BCH) – 0.9%: As a fork of Bitcoin, Bitcoin Cash holds 0.9% of the transactions, offering a different set of features like faster processing times.
- Dogecoin (Doge) – 0.7%: Initially started as a meme, Dogecoin has gained popularity and accounts for 0.7% of the payments, favored for its low transaction fees and strong community support.
- Binance Coin (BNB) – 0.5%: Binance Coin, native to the Binance exchange, is used in 0.5% of transactions, popular among users of the Binance platform.
- Ripple (XRP) – 0.3%: With a 0.3% share, XRP is known for its rapid and cost-effective cross-border payment solutions, appealing to a segment of Bacloud’s international customers.
This diversity in cryptocurrency usage at Bacloud not only reflects the varied preferences of their global client base but also underscores the importance of offering multiple payment options.
It puts a spotlight on the adaptability of Bacloud’s services to cater to a wide range of financial preferences, facilitated by our versatile payment processing solutions.
A Peek at Measurable Growth and Future Outlook
The integration of CoinGate’s cryptocurrency payment solutions has been a catalyst for measurable growth at Bacloud, with Andrius Petkus providing insight into the tangible impact and their forward-looking perspective.
Petkus quantifies the growth: “Crypto payments make up a significant part of the company’s turnover. If in the first months of 2015 we would receive 10 – 20 payments, now we receive close to a thousand payments every month.” This statistic not only demonstrates the scale of adoption but also the increasing trust and preference for cryptocurrency payments among their clients.
He further discusses the increasing trend: “The number of crypto payments is constantly increasing, as is the number of people who understand the necessity and advantages of cryptocurrency.” This observation highlights the growing acceptance of cryptocurrency as a mainstream payment option and Bacloud’s role in fostering this transition.
Looking to the future, Petkus shares Bacloud’s vision: “This year we plan to participate in Blockchain Expo 2024 in Europe and the USA and introduce our company as a reliable service provider for the Blockchain ecosystem, Web3 projects.” This underscores Bacloud’s commitment to staying at the forefront of technological advancements and their ambition to be a part of the evolving digital landscape.
The adoption of cryptocurrency payment solutions has led to significant growth for Bacloud, with the future outlook focusing on continued expansion in the blockchain and Web3 arenas.
The Transformative Power of Cryptocurrency Payment Processors
The case of Bacloud, illuminated through the insights of Andrius Petkus, CCO at Bacloud, exemplifies the transformative impact that cryptocurrency payment processors like CoinGate can have on modern businesses. This partnership highlights several key learnings and broader implications for businesses considering a foray into cryptocurrency payments:
- Expanding Market Reach and Client Base: Bacloud’s experience shows that integrating cryptocurrency payments opens doors to new markets and clients. As Petkus noted, “Crypto payments are an entirely new market and new clients,” emphasizing the potential for businesses to tap into a wider and more diverse customer base.
- Streamlined Operations and Financial Efficiency: The ease and efficiency of integrating payment solutions like CoinGate, as highlighted by the quick and hassle-free setup process described by Petkus, demonstrate how cryptocurrency payments can streamline operations and financial processes.
- Enhancing Customer Trust and Satisfaction: Bacloud’s proactive approach to educating and engaging with their clients about cryptocurrency payments led to increased customer trust and satisfaction. This approach is crucial for businesses in demystifying new technologies and fostering customer loyalty.
- Growth and Scalability: The significant growth in transaction volume for Bacloud, as Petkus points out, underlines the scalability of cryptocurrency payments for businesses. This growth trajectory showcases the robustness of such payment solutions in adapting to increased demand.
- Future-Proofing the Business: Bacloud’s plan to participate in Blockchain Expo 2024 reflects a forward-thinking mindset, essential for businesses in today’s rapidly evolving digital landscape. Embracing cryptocurrency payments is not just about addressing current trends but also about positioning for future opportunities.
For companies like Bacloud and others in the tech-forward sectors, adopting such innovative payment solutions is a strategic move towards greater market adaptability, operational efficiency, and future growth.
The insights from Bacloud’s journey with CoinGate offer valuable lessons for any business looking to navigate the new frontiers of digital payments and blockchain technology. Ready to start your journey? Create an account with CoinGate today, and check out Bacloud services.