Advantages of Receiving Payments in Cryptocurrency
Blockchain technology's introduction has paved the way for an abundance of cryptocurrencies. Each possesses unique characteristics, from community support and governance structures to specific applications and utilities.
All these diverse cryptocurrencies, however, share a singular transformative potential: they're reshaping the societal approach to daily financial interactions. Our understanding of concepts like money, property rights, and value is evolving, with a growing inclination towards blockchain-driven currencies.
While the rapid expansion of the Decentralized Finance (DeFi) sector might seem astonishing now, nearing its milestone of a trillion-dollar market, the roots trace back to 2008. It was then that the Bitcoin whitepaper, published anonymously by Satoshi Nakamoto, created ripples in the cypherpunks’ community.
From that monumental moment, public enthusiasm for Bitcoin surged, setting the stage for an unstoppable momentum. This enthusiasm expanded to encompass the broader blockchain landscape, sparking the emergence of myriad cryptocurrencies, innovative DeFi solutions, Non-Fungible Tokens (NFTs), decentralized applications (dApps), decentralized exchanges (DEXs), and other revolutionary blockchain-based innovations.
Digital assets: the next generation of transactional tools
In today's financial landscape, it's undeniable that not just Bitcoin, but the entire realm of cryptocurrencies, has carved a niche as a fresh, captivating, and dynamic means of exchange. This is embraced by both everyday crypto enthusiasts and enterprises keen on broadening their horizons to encompass free and unfettered financial ecosystems.
The normalization of using digital assets for purchasing goods and services is palpable in today's world. Businesses across the spectrum, encompassing virtually every conceivable industry, have ventured into the realm of decentralized transactions. These entities trade, transact, and accept payments on decentralized platforms — an innovation that only became a reality with Bitcoin's inception. Their motivations vary; for some, it aligns seamlessly with their operational framework, while for others, digital currency payment systems effectively complement traditional methods, among other reasons.
Yet, diving deeper into the crypto world, there exists a myriad of compelling reasons that make the case for its adoption. If you're contemplating the integration of cryptocurrency payments, you might be onto something universally beneficial. The subsequent analysis provides a testament to this belief.
Should businesses consider accepting digital currencies?
While a vast number of businesses have embraced cryptocurrency as an accepted payment method, recent research by the prominent crypto exchange, Crypto.com, paints an intriguing picture of the disparity between consumer desires and the availability of crypto payment options among merchants.
The study, which encapsulated feedback from approximately 110,000 consumers and insights from over 1.5 million Worldpay merchants, revealed a startling insight: a mere 4% of the surveyed merchants provide a crypto payment avenue, even though a robust 60% expressed an interest. In contrast, 40% of the polled customers actively utilize digital currencies for their purchases, with an overwhelming 75% indicating eagerness to have such a capability.
The Growing Demand for Crypto Payments
Interestingly, close to half of all consumers are already using crypto to settle their transactions.
Due to this glaring gap - with crypto-savvy customers outnumbering accommodating merchants by nearly tenfold - a significant 64% of Crypto.com's user base resort to prepaid cards as a bridge, using them to spend their cryptocurrency assets at venues that don't accept crypto directly. This trend underscores a fervent desire for a more expansive integration of cryptocurrency payment avenues.
This data not only sheds light on a colossal opportunity awaiting merchants globally but also underscores sectors like travel, automotive, digital media, and hospitality as potential hotspots. These industries, as the study points out, display the most pronounced imbalance between supply and demand for crypto payment options.
Yet, this rising consumer appetite for digital currency payment methods is merely the tip of the iceberg. There are a plethora of reasons, extending beyond sheer demand, that make a compelling case for businesses to integrate crypto payment gateways actively.
Why Accepting Cryptocurrencies is a Smart Business Decision
Cryptocurrency Advantages for Users and Merchants
Cryptocurrencies offer users a blend of speed, affordability, simplicity, and privacy. For businesses, incorporating cryptocurrency payment systems not only avoids the complications tied with traditional payments but also uncovers new, untapped opportunities.
1. Swift and Global Transactions
Crypto transactions are nearly instantaneous, irrespective of geographical boundaries. Solutions like CoinGate even expedite typically slower Bitcoin and Ethereum transactions. All activities are transparently recorded on blockchain ledgers, eliminating the need for banking infrastructure.
2. Bypass Currency Conversion Hassles
For businesses with international dealings, cryptocurrencies eliminate the problems of currency conversions, leading to faster and cost-efficient transactions.
3. Reduced Transaction Costs
Unlike traditional payment systems, which can charge upward of 2.9% per transaction, cryptocurrency processing fees are minimal, usually below 1%.
4. Eliminate Fraudulent Chargebacks
E-commerce often struggles with wrongful chargebacks. Cryptocurrencies, being irreversible by nature, nullify the risk of such fraudulent activities, providing more security to merchants.
5. Tap into a Wealthier, New Demographic
Statistics from BitPay show that 40% of crypto-paying customers are new to the merchant, spending more than their credit card-using counterparts. Young, educated males, who largely dominate the crypto space, represent a lucrative demographic for businesses.
6. Leverage Crypto for Branding
Being a crypto-friendly brand can be a significant marketing asset. Companies like Travala have showcased that a crypto-centric approach, coupled with strategic social media presence, can boost sales.
7. Maintain Financial Autonomy
Accepting cryptocurrencies gives businesses more financial control. Whether they choose to retain the crypto assets or convert them to fiat, businesses have options. However, managing multiple cryptocurrencies can be challenging, hence the value of third-party processors.
8. Seamless and Cost-Effective Integration
Setting up a cryptocurrency payment system is straightforward and affordable. While options like BTCPay Server are free and open-source, many businesses prefer comprehensive solutions like CoinGate. CoinGate offers a multi-cryptocurrency platform, handling potential transaction discrepancies, offering multiple withdrawal options, and charging a mere 1% fee.
Incorporating cryptocurrency payments is no longer a futuristic concept but a current-day necessity for forward-thinking businesses.
Guidelines for Integrating Cryptocurrency Payments: Key Considerations
Before diving into the world of cryptocurrency payments, it's crucial to weigh whether you want to navigate this landscape independently or seek assistance from platforms like Plisio. Your choice will hinge on your objectives and the resources you're willing to allocate.
Taking the DIY route can be demanding. It necessitates a committed team to oversee operations, and there's a significant learning curve associated with understanding the intricacies of cryptocurrencies.
Plisio, for instance, provides various tools to incorporate cryptocurrency payments, ranging from easy-to-use plugins and buttons to more advanced coding libraries that leverage their API for a bespoke user experience. All of these options come equipped with a comprehensive backend infrastructure and a dashboard.
Please note that Plisio also offers you:
- Zen Cart
- Easy Digital Downloads
6 libraries for the most popular programming languages
19 cryptocurrencies and 12 blockchains
- Bitcoin (BTC)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Tron (TRX)
- Litecoin (LTC)
- Dash (DASH)
- DogeCoin (DOGE)
- Zcash (ZEC)
- Bitcoin Cash (BCH)
- Tether (USDT) ERC20 and TRX20 and BEP-20
- Shiba INU (SHIB) ERC-20
- BitTorrent (BTT) TRC-20
- Binance Coin(BNB) BEP-20
- Binance USD (BUSD) BEP-20
- USD Coin (USDC) ERC-20
- TrueUSD (TUSD) ERC-20
- Monero (XMR)