The time has come to start accepting cryptocurrency on
Cryptocurrency. Bitcoin, Ethereum, Stablecoins, DogeCoin. These are unknown terms, with a few vaguely terrifying implications! But, there are many benefits of accepting crypto payments for your business and we'll break them down for you in this article.
Like some people choose to utilize an online wallet (Apple Pay, Google Pay etc. ) Others prefer using cryptocurrency, and will even seek out retailers that will accept it. By providing this option, you widen your audience and increase the likelihood of sale.
If you think it's an overwhelming process You'll be glad to learn that you do not require becoming an expert in crypto . You just need to be aware of how all the technical aspects work in order to take advantage of it. Some solutions even allow you to automatically turn crypto payments into your preferred money - such as U.S. Dollars. This means you will never skim a beat.
recently partnered with several payment processing services that will enable you to accept crypto along with other payment methods. Learn the basics about crypto and how you can make use of it for your online store.
What is cryptocurrency?
Cryptocurrency can be described as "A digital currency where transactions are vetted and the records kept by a decentralized system by using cryptography instead of an authority that is centrally controlled." We will explain this:
For most currencies, such as U.S. dollars, control eventually falls to a single entity, such as a central bank, who has the responsibility of establishing policy as well as regulating the supply. Central banks try to use these powers to limit major fluctuations in currency values to maintain trust.
Although it might grant privileges to smaller organizations - for instance, local banks - to oversee certain transactions, it is the sole authority to verify that the dollar bill you hold in your hand is actually worth a dollar goes back to the source.
For crypto, instead of all of the control being held by central institutions - such as central banks and governments, the authority to design the, manage, and regulate cryptocurrencies is shared with computers in networks that can be run by anyone.
These networks announce, verify the process and security of transactions in order to establish decentralized financial and communications networks. The transactions are validated by complex algorithms called cryptography.
You've likely heard of two of the most popular crypto currencies that are Bitcoin as well as Ethereum (often referred to as Coins). However, cryptocurrencies take many dimensions and shapes and are available on a reliable website monitoring more than 9500 different currencies. Some have their own value that can be volatile. Others are pegged to a traditional or fiat currency - most commonly USD or USD - and are also known for their stabilized coins.
What are the products that customers can purchase using cryptocurrency?
Although many use crypto as a form of investment and investment, around 80percent of cryptocurrency consumers make use of Bitcoin to pay online and in stores. The first quarter of 2021, Visa announced that more than a billion dollars was spent using bitcoin-linked crypto cards.
It is estimated that there are 33.7 million U.S. cryptocurrency owners. Source: Insider Intelligence
A study conducted by PYMNTS and BitPay shows that consumers make use of cryptocurrency for a broad range of types of transactions. There's online gaming and retail. This is what you'd expect, but more than 30% of crypto-lovers have also utilized it for grocery items. The same study found that there were 17 sectors that saw substantial usage of cryptocurrency for payments - everything from vehicles to jewelry, appliances, financial services, travel and tourism services, as well as many other.
Accept payments made in crypto - be the money in traditional currencies
Today, there are crypto payment processors which will convert your crypto to fiat currency and transfer the money to your bank in a matter of hours. This is a service that some crypto partners offer.
With this feature, it is not necessary to purchase the cryptocurrency, keep it in your wallet, or invest in cryptocurrency in order to use it as a payment method.
Twelve reasons why you should accept cryptocurrency on your shop
Stores should always work to provide goods and services that are appealing to their target market, and to make transactions safe effortless, easy and simple. Like the introduction of digital wallets as well as alternative payment methods like PayPal makes it easier for lots of clients, offering cryptocurrency also can do similar things. It can also set you ahead of the others and increase the number of customers you could attract.
Additionally, cryptocurrency offers a vast variety of security and management advantages for the merchants. Here are 12 reasons to start accepting cryptocurrency on your store:
1. It is possible to take payment anywhere, from any person, at any time.
Why? Because the value of each cryptocurrency is similar around the world. This is particularly useful for merchants and businesses that are international or selling digital goods and services which don't have to set the logistics for shipping to gain access to the global market.
2. You don't have to think about the currencies that you'll be offering, deal with the exchange rate of foreign currencies, or manage international treasuries.
If you decide to hold the crypto currency as it is instead of converting it automatically and then settle it, you could use it for international payment to suppliers and contractors at similar fees, and speed.
3. You'll gain access to a large, growing client base.
The estimates suggest that more than a billion people worldwide have invested in crypto, with 46 million Americans using Bitcoin alone. It is estimated that the majority of users of crypto have a age range of 18 and 35. This is a huge number of potential clients!
The market is expected to grow with crypto payment volumes expected to nearly triple by 2030.
4. Customers can be converted to your company from the competition.
The US Crypto Consumers research found that more than 25% of customers would prefer to shop at a store that accepts cryptocurrency while 32% millennials say"very" or "extremely "very" as well "extremely" likely to switch to a merchant that accepts crypto.
5. The likelihood is that you'll raise your order value by a significant amount.
Customers who use crypto tend to pay higher - particularly for high-end products and services, and one report states that cryptocurrency orders are worth double the amount of the typical value.
6. Crypto has become a mature ecosystem.
There are excellent integrations with well-known crypto payment companies, each with a number of unique, merchant-specific features. Customers complete more than $10 billion in transactions every day between around one million active addresses that are on Bitcoin and Ethereum networks by themselves.
7. Settlements will be faster.
Receive payments to your bank or crypto wallet in just a few hours (or even immediately!) instead of waiting for days using traditional processors.
8. Get lower transaction costs.
Most crypto processors charge 1percent, versus 2.5 percent or more for traditional payment processors.
9. Receive chargeback protection.
There's nothing like an unpaid chargeback in cryptocurrency when you've received your cash it's safe to trust the money to be there. However, it's crucial to settle disputes with customers And there are excellent resources that can assist you with that - but crypto gives you control over the process of resolution.
10. Maintain control over reimbursements.
There's no automated refund option in cryptocurrency. It's up to you when and how you issue refunds. As with chargebacks, that doesn't mean you don't need to issue refunds to customers. It simply puts you in total the control.
11. Provide native purchase of cryptocurrency assets.
NFTs (and other cryptocurrency assets) could provide exciting and lucrative opportunities for businesses to earn new income streams. Accepting crypto payment is the initial step towards exploring these opportunities.
12. Take direct control of your funds.
Some payment companies will may suspend or even cancel accounts of merchants. There are a myriad of valid reasonsfor this, but for merchants it may be a sign of a miss. In contrast, with crypto, you're solely responsible for the funds you have.
Merchants are listening to their customers, and believe that the majority of customers have a strong desire to use digital currencies for payments. Most merchants believe that customer interest will increase in the coming year and more than 75% have reported plans to accept stablecoin transactions. Almost the same percent said they would accept cryptocurrency transactions, as well, within the in the next 24 months. Source: Deloitte
The right choice regarding your store
Each circumstance is unique, though we've presented an important piece of facts, it's still up to the merchant to decide the future of their business. We're neither legal nor financial professionals. Therefore, merchants need to seek out their own certified reliable advisers.
Do your customers have expressed an interest to pay with cryptocurrency? Have you seen other merchants use crypto-based payment methods? Please let us know by leaving a comment!