What is DAI payment?

A DAI payment refers to transactions conducted using DAI, a decentralized stablecoin pegged to the value of the US Dollar (1 DAI ≈ 1 USD). DAI operates on the Ethereum blockchain as an ERC-20 token and is designed to maintain price stability through a system of smart contracts and collateralized debt positions (CDPs) managed by the MakerDAO protocol. Businesses can accept DAI as a payment method for goods and services, benefiting from its stability, decentralization, and flexibility.

How does DAI payment gateway work?

1

Set Up DAI Payments for Your Business

‍Calypso Pay provides a comprehensive payment gateway API, allowing you to easily add DAI and other crypto payment options to your website or platform.

2

Customer Selects to Pay with DAI

Your customers can choose to pay with DAI or other supported cryptocurrencies. They can also pay in fiat, which Calypso Pay will convert into crypto for your account.

3

We Generate a Payment Widget

Calypso Pay instantly creates a payment widget that calculates the amount in DAI and provides the payment details to your customer. You can also enable auto-conversion to minimize the impact of price volatility.

4

You Receive Payments Directly

Once the payment is processed, funds are sent directly to your business wallet. You have the option to transfer internally between accounts with zero fees.

Why use DAI for business?

  • Stability: DAI is pegged to the US Dollar, making it less volatile compared to other cryptocurrencies like Bitcoin or Ethereum.
  • Decentralized: Unlike traditional stablecoins (e.g., USDC, USDT), DAI is managed by the MakerDAO protocol, which is governed by a decentralized community.
  • Blockchain-Based: Transactions occur on the Ethereum network, ensuring security, transparency, and global accessibility.
  • Multi-Collateral Backing: DAI is backed by a variety of cryptocurrencies (e.g., ETH, WBTC) to maintain its peg to the USD.

    • How to accept DAI payments for business?

    1. Sign Up for a Calypso Pay Account. Register with Calypso Pay in under a minute. Our support team is available to assist with onboarding and integration.

    2. Create an API Key. Generate an API key to set up Calypso Pay payment gateway. This will allow you to accept DAI payments and make payouts seamlessly.

    3. Set Up a Payment Widget. Create a cryptocurrency Payment Widget, add DAI as a payment option, and embed it on your website. Customize the payment flow to match your business needs and branding.

    With these steps, you're ready to start accepting DAI payments through Calypso Pay.

    FRAX payment methods

    Invoices: limited and unlimited crypto invoices, fiat invoices.

    Payouts: single and mass payouts.

    Specific cases: recurring payments, payroll.

    Payment flow: Payment Widget, Payment Link or Embedded Link.

    ‍DAI payment gateway API: is supported.

    FAQ

    How do I accept DAI payments?

    • Sign up for a Calypso Pay business account.  
    • Complete the onboarding process with our account manager.  
    • Generate your first API key.  
    • Use our API documentation or get help from our support team to integrate.  
    • Add DAI as a payment option in your checkout.

    What is DAI?

    DAI is a decentralized stablecoin pegged to the US Dollar (1 DAI ≈ 1 USD) and operates as an ERC-20 token on the Ethereum blockchain. It is maintained by the MakerDAO protocol, which ensures price stability using collateralized debt positions (CDPs) and smart contracts.

    Who created DAI?

    DAI was created by MakerDAO, a decentralized autonomous organization founded in 2014 by Rune Christensen. The MakerDAO protocol governs the minting and management of DAI through a decentralized community.

    How is DAI different from other stablecoins?

    Unlike centralized stablecoins like USDC or USDT, DAI is decentralized and governed by MakerDAO's community. It is backed by a variety of cryptocurrencies (e.g., ETH, WBTC) instead of relying on centralized reserves of fiat currency.

    How is the value of DAI maintained?

    DAI maintains its peg to the US Dollar through a system of overcollateralized debt and smart contracts. When users create DAI, they must lock up cryptocurrencies (like ETH) as collateral, ensuring the stability of the token.

    How can businesses accept DAI payments?

    Businesses can accept DAI payments by integrating a crypto payment gateway or API that supports DAI, such as Calypso Pay. Payment widgets, direct payment links, or e-commerce plugins can be used to facilitate transactions in DAI.

    What industries can benefit from DAI payments?

    Industries dealing with international transactions, subscriptions, e-commerce, and decentralized finance (DeFi) can benefit from DAI payments due to its stability, global accessibility, and blockchain-based nature.

    Is DAI secure to use?

    Yes, DAI is secure to use. Its decentralized nature, reliance on Ethereum's blockchain, and governance by MakerDAO ensure transparency and resilience. However, users should use secure wallets and follow standard crypto safety practices.

    What wallets support DAI?

    DAI is supported by numerous wallets, including MetaMask, Trust Wallet, Coinbase Wallet, and hardware wallets like Ledger and Trezor.

    Can I use DAI for payouts?

    Yes, businesses can use DAI for payouts. Payment gateways like Calypso Pay allow merchants to send DAI payouts to employees, vendors, or affiliates globally.

    How is DAI comparable to Bitcoin?

    While Bitcoin is a volatile cryptocurrency designed as a store of value, DAI is a stablecoin pegged to the US Dollar. DAI's stability makes it better suited for day-to-day transactions and payments.

    How do DAI transactions work?

    DAI transactions are conducted on the Ethereum blockchain. When a customer sends DAI, the transaction is verified by the blockchain, and the recipient receives DAI in their wallet. Smart contracts ensure trustless and secure transactions.

    How can I use DAI in my business?

    You can use DAI for accepting payments, making payouts, settling international transactions, and participating in decentralized finance (DeFi) applications to earn yield or liquidity.

    What are the transaction fees for DAI payments?

    Transaction fees for DAI payments are determined by the Ethereum network's gas fees. These can vary depending on network congestion, but DAI transactions generally have lower fees than traditional payment methods.

    Can I use DAI for cross-border payments?

    Yes, DAI is ideal for cross-border payments because it avoids currency conversion fees and delays. It allows businesses to transact globally in a stable currency.

    What is the difference between Single-Collateral DAI (SAI) and Multi-Collateral DAI?

    Single-Collateral DAI (SAI) was the original version of DAI backed solely by ETH. Multi-Collateral DAI (DAI) replaced SAI and allows multiple types of cryptocurrency collateral, including ETH, WBTC, and others.

    Does DAI support automated recurring payments?

    DAI does not natively support automated recurring payments. However, payment processors like Calypso Pay or platforms that support DAI can implement recurring payment solutions for businesses.

    Is it legal to accept DAI payments for business?

    It depends on your location. Calypso Pay works in all countries except the following ones:

    • Belarus
    • the Central African Republic
    • the Democratic Republic of the Congo
    • Iran
    • Iraq
    • Lebanon
    • Libya
    • Mali
    • Myanmar
    • Nicaragua
    • North Korea
    • the People’s Republic of China
    • Russia
    • Somalia
    • South Sudan
    • Sudan
    • Syria
    • Ukraine
    • Venezuela
    • Yemen
    • Zimbabwe