On-ramp and off-ramp payments exist today as testament to how money has evolved—how we transact it, exchange it, or store value with it.
Before cryptocurrency exploded onto the scene in 2009 with Bitcoin (BTC) and paper money became an official means of exchange, forming civilizations relied on barter.
But as we progressed, the concept of money and payments emerged.
In 1998, pioneer Wei Dai proposed the proof of concept for the cryptocurrency system, to which Bitcoin and thousands of altcoins after it partly owe their thanks to.
Today, when we discuss the concept of money, we argue on the possibility of adopting on-ramp and off-ramp payments.
“Is it even possible?” we ask.
In this article, we explore how on-ramp and off-ramp payments integrate and how we can benefit from the best of both worlds in finance.
On-ramp Payments
On-ramp payments refer to the process of converting your fiat currencies, like US Dollars ($USD), European Euros (€EUR), or the Nigerian Naira (₦NGN) into cryptocurrencies or other digital currencies.
An “on-ramp” service allows you to exchange your fiat money to cryptocurrency. With an on-ramp, you can use your cash in hand to buy into the cryptocurrency ecosystem, as easy as flipping a switch.
Methods of Making On-ramp Payments
On-ramp payments can happen in many ways as the world of payments is constantly evolving.
But let us explore the biggest three ways many users over the world change their fiat currencies to crypto.
#1 Fiat Currency Deposits
One method of on-ramp payments you’ve probably interacted with is the fiat currency deposit.
Fiat currency deposits allow you to deposit fiat currencies into a provided wallet and use that currency to exchange for crypto.
Some platforms offer on-ramp services that allow you to deposit your local currencies into their apps and use it to buy crypto. One example of such a platform is Luno.
Palremit offers a Luno alternative; a simpler solution for depositing your local currency and buying cryptocurrency with it.
The DEPOSIT feature in our app allows users to send fiat currencies into their Palremit wallets, as easy as making a bank transfer.
How does this work?
When you download the Palremit app and create an account, you’ll have to complete the KYC verification process — it takes five minutes — to get your virtual bank account number.
With this bank account, you can send in Naira (NGN) to your Palremit account and use it to buy any cryptocurrency available on our platform.
We are working towards making other fiat currency deposits possible on our platform.
#2 Currency Exchanges
Cryptocurrency exchanges are online platforms that allow users to buy cryptocurrencies like Bitcoin, Ethereum, etc., using fiat currencies.
Users can deposit funds from their bank accounts or credit/debit cards and then use those funds to buy (or swap to) cryptocurrencies. Another example of such a platform is Yellow Card.
Palremit offers a Yellow Card alternative; we provide a simple solution for people who are looking to buy or swap their hard cash to cryptocurrency.
The SWAP feature in our app allows users to exchange (or swap) the fiat currency in their Palremit account to any cryptocurrency supported on our platform.
In addition, Palremit is a VASP-licensed service provider, which means that you can trust us to provide you with transparent pricing according to the market rate of whatever digital currency you want to exchange.
How does this work?
Simply login to your Palremit account and click on the “SWAP” feature on your dashboard. You can then exchange currencies from fiat to crypto in five easy steps. We covered these steps in our product guide on how to swap currencies on Palremit.
Fiat to crypto exchange is that easy on Palremit!
#3 Peer-to-Peer (P2P) Platforms
P2P is one of the most popular mediums for both off-ramp and on-ramp payments. People use peer-to-peer transactions to purchase cryptocurrency with their local currency on platforms like Binance.
Say you have a fiat currency and would like to buy a stablecoin like Bitcoin, you’re matched to vendors who sell/have Bitcoin on these exchanges (like Binance), and are willing to sell to you for the fiat money in your possession.
Albeit, P2P works a little differently on Palremit. With our SEND feature, you can send cash or cryptocurrency (only supported currencies on our platform) to any other Palremit user.
How does this work?
On your dashboard, select the “SEND” feature and choose which currency you want to send (cash or crypto).
Once you’re done, you’ll be required to enter the Palremit ID of the user you want to send money to. Once you confirm their details and send them the money, the exact amount is deducted from your Palremit account, and credited to the recipient’s Palremit account in real-time.
ℹ️ Note that to use the P2P feature on Palremit, both the sender and recipient must have registered Palremit accounts and use the correct Palremit ID information during the transaction.
You can find your Palremit ID in Settings > Palremit ID.
Benefits of On-ramp Payments
So, why should you even care about on-ramp payments?
You are probably better off handling just your local currency. But here’s the kicker: why does anybody ever do anything?
Our biggest bet is on autonomy—to have control over how you handle money and carry out your daily transactions.
The integration of on-ramp and off-ramp payment methods on Palremit gives you access to the best of both worlds of finance.
But with on-ramp payments on Palremit, you get:
- An easy entry-point into the world of crypto.
- Access to faster transactions when you use crypto.
- Benefit from the investment opportunities available in cryptocurrency (⚠️ not a financial advice ⚠️).
Off-ramp Payments
Off-ramp payments are the direct reverse of on-ramp payments. In off-ramp payments, instead of converting fiat to crypto, this time, you’re converting from cryptocurrency to fiat currency.
Here’s a simple analogy: on-ramp payments is buying into crypto with your cash, while off-ramp payments is selling off crypto to get back your cash.
An “off-ramp” service allows you to exchange your cryptocurrency to fiat currency, again, as easy as flipping a switch.
Methods of Making Off-ramp Payments
Off-ramp payments can happen in many ways as the world of payments is constantly evolving.
But let us explore the biggest three ways many users over the world change their fiat currencies to crypto.
#1 Currency Exchanges
Similar to on-ramp payments, cryptocurrency exchanges are one of the primary methods for off-ramping digital assets into fiat currencies.
These platforms typically allow users to sell their cryptocurrencies for the equivalent value in traditional currencies like USD, EUR, KES, GHS, NGN, or others.
Then your fiat funds can then be withdrawn to your local bank account.
Palremit as a Binance alternative for off-ramp transactions allows users to SWAP their cryptocurrency back to their local currency and withdraw to any bank account of their choice.
Palremit presents an easier way to liquidate your crypto in times of need and get your NGN or other local currencies, especially given the recent clampdown on Binance.
How does this work?
To exchange your cryptocurrency to fiat, Palremit offers two features you can use in combination to get it done.
First, the SWAP feature lets you exchange any cryptocurrency you’re holding in your Palremit account back to fiat currency.
We currently support up to six currencies and you can exchange Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) on Palremit.
Next, after swapping to your fiat currency of choice, you can choose to send the money to your local bank account with our WITHDRAW feature. Or you can choose to hold the money in your Palremit wallet, or buy into other currencies available on our platform.
#2 Peer-to-Peer (P2P) Platforms
While primarily used for on-ramping, some P2P platforms also support off-ramping by allowing users to find counterparties willing to purchase their cryptocurrency in exchange for fiat currency.
These transactions can occur through various payment methods, such as bank transfers or cash deposits.
On Palremit, users can exchange both cash and cryptocurrency to other Palremit users through the P2P SEND feature in our mobile app.
#3 Direct Bank Transfers
Some cryptocurrency services and platforms offer the ability to directly transfer cryptocurrency to a wallet, effectively converting them into fiat currency.
This method may involve integration with traditional banking systems or third-party payment processors that handle the conversion process.
Again, as a Luno alternative, Palremit allows users to send cryptocurrency from other exchanges into their Palremit wallet.
How does this work?
With the DEPOSIT feature, you can copy your currency-specific wallet address (like USDT address) in your Palremit app, and paste it into any third-party exchanges.
Then send your cryptocurrency from exchanges like Binance to your Palremit multi-currency wallet.
ℹ️ Be sure to pay attention to the network you’re sending through and use the correct receiving address in order not to lose your funds.
Benefits of Off-ramp Payments
With off-ramp transactions enabled on Palremit, this allows you to:
- Swap crypto to cash fast and get liquidity to take care of other projects or needs that matter to you.
- No need for endless waiting looking for who will buy your crypto off you and pay you cash. Do it all on your own with the SWAP feature on Palremit.
Challenges and Considerations
The biggest concern when it comes to on-ramp and off-ramp payment platforms like Palremit revolves around how secure, and how easy to navigate the platform is — two aspects of our solutions we make a case in point to prioritize for our users’ optimal experience.
Palremit is an easy-to-use platform.
- You sign up in 5 – 10 minutes after downloading the app.
- Complete your KYC in 5 minutes and get started.
- Most transaction actions on Palremit take five steps or less to complete on average; saving you the stress of going through layers upon layers of actions to take just to send money.
We also prioritize your security of funds through compliance measures and extensive identity checks to ensure your peace of mind when carrying out your transactions on Palremit.
We’ve Made Accessing Money Easy
Download the Palremit app on Google PlayStore or Apple Store to enjoy seamless financial transactions on the go. The app now allows you to swap money between USDT and other local currencies, so you can start using your money without borders.
