The Benefits of Accepting Cryptocurrency Payments

Cryptocurrency is breaking down barriers in the world of payment technology. Due to the growth of digital payment options, customers are now able to pay using cryptocurrency. While cryptocurrency isn’t a brand new type of currency however, it offers a completely different method of payment to the way that consumers normally pay. In this blog companies will discover the benefits of accepting payments made in cryptocurrency from customers , including lower processing charges as well as reduced chargebacks, quick payment, fraud protection and many more.

What is cryptocurrency?

You’ve probably been aware of Bitcoin as the most widely used cryptocurrency in the present. What is the definition of cryptocurrency? What exactly is it? And how can we pay with it for both goods and services? Let’s go over the fundamentals. It is a decentralized type of digital payment processed via the internet. It operates without the involvement of an official central bank or a government entity. The currency is popular among investors. A recent study revealed that one out of 10 people living in the U.S. currently invests in cryptocurrency. Apart from using cryptocurrency as an investment option the holders of currency can also purchase items and services that are commonly used by the coins or digital tokens. Because transactions made with cryptocurrency aren’t checked by central banks as such, they are recorded on a blockchain . A blockchain is a kind of ledger technology that houses the virtual records of all your transactions. Any asset can be tracked and traded via a blockchain network and the data that is important to you is kept in a secure manner and is not able to be altered. The technology helps reduce risks, decreases fraud and lowers the cost for all involved parties.

It is the Evolution of Cryptocurrency and the increase in the acceptance of cryptocurrency among businesses

The cryptocurrency was introduced in 2009 and isn’t new to the technology of payment. While it’s been around for a long time, cryptocurrency is an established payment method in the financial world but the latest developments in other cryptocurrency, and its increased ad-hoc acceptance by merchants has made it increasingly well-known. Its popularity exploded shortly after the introduction of Bitcoin software for the general public in 2009 , along with the most popular alternative cryptocurrency options such as Litecoin as well as Namecoin. By 2021, around 106 million people across the globe were using cryptocurrency exchanges which means that 328,370 bitcoin transactions were completed every day last year. With cryptocurrency becoming more readily available and accepted by companies, people are eager to take advantage of the greater scope of flexibility for payment as well as profitable investment options. The early users to cryptocurrency in the form of a method of payment included WordPress, Newegg, Expedia and Microsoft.

With the popularity of cryptocurrency growing and being viewed more and more as a valid payment method and a variety of sectors -and even SMBs have begun using it for a means of payment. This has opened up lucrative opportunities for businesses in a range of sectors, from food, healthcare, retail and real estate, travel, and many other. Today more than 18,000 businesses accept cryptocurrency as a payment method for their service or product. With the increase in the demand of consumers, it is likely that the acceptance of cryptocurrency will only grow over the next few years. A recent survey conducted by PYMTS More than half of respondents indicate that they’re most interested in using cryptocurrency online. Furthermore, a third of the respondents say they’re keen to use crypto both in stores and online.

The benefits of accepting cryptocurrency

With cryptocurrency transactions increasing businesses are planning to adopt payment processing systems that permit the acceptance of cryptocurrency. While businesses are able to use their own cryptocurrency wallets for accepting payments, partnering with a provider of payment technology (such as an online payment processor reduces the risk of regulatory oversight in the process of processing transactions. As mentioned previously, because there’s no financial institution that regulates every transaction and every transaction, a payment gateway creates an “middle man” by adding an extra layer of accountability for the management of transactions. Additionally, users can avail many more payment options including credit cards as well as mobile wallets.

Alongside providing more payment flexibility, there are a few additional benefits for businesses that choose to accept cryptocurrencies via an online payment processor:

Lower Costs

Merchants will see greater profits and also enjoy lower processing costs when they accept cryptocurrency payment. In addition, cryptocurrency has lower transaction costs than credit or debit cards. In comparison to credit card or debit card costs which typically cost between 3% and 4 percent per transaction, cryptocurrency fees typically are less than percent.

No Chargebacks

The process of dealing with chargebacks, which are dispute filed by customers on credit card transactions can be very stressful and cause a significant loss of revenue for companies. Being the victim of dispute with credit cards, businesses suffer billions of dollars each year battling the expenses related to chargebacks. A Mastercard study revealed that the worldwide chargeback volume is predicted to rise to 615 million by 2021. The total amount of chargebacks made within the US alone is projected to reach 409 million in 2023. Since cryptocurrencies don’t have the backing of an institution or bank and there’s no one that a cardholder can make a claim in order to reverse the purchase. If the cardholder wants to request an amount of money back, they will need to raise their issue in person with their merchant.

Secure Funding

Many businesses who want to begin accepting cryptocurrency are concerned about the volatility of the market that could affect their transactions. To alleviate this issue and safeguard against price volatility and volatility, many payment gateways can convert cryptocurrency transactions to U.S. dollars for instant and secure payouts. Merchants can count on stable funding , and avoid the risks that come with fluctuations in market prices. Furthermore, it provides more security against inflation.

Fraud Protection

The term “cryptocurrency” comes from cryptography, an approach to secure information as well as private keys. Private keys are issued to those who own currencies, which establish ownership of their cryptocurrency. To pay with cryptocurrency, the user chooses their wallet and then authorizes the transaction. There is no requirement to provide sensitive information about the payment, as is the case for credit card transactions.

Simple to implement

Payment gateways that can support cryptocurrency processing are easily integrated with e-commerce platforms, point of sale systems, online checkout hosted forms, accounting or billing software, and more. These integrated, simple integrations enable quick settlement and reporting of every type of transaction.

Instant Cash Flow

In contrast to the conventional credit card and ACH process of funding, which can take several days the cryptocurrency payment process is transferred instantly when the transaction has been approved. Merchants are able to have quicker access to the assets in their inventory and a steady cash flow.

Merchants who accept Cryptocurrencies

Businesses are trying to take advantage of new technologies to can better serve the increasing amount of people who own cryptocurrency. A recent study has revealed that over half of owners of cryptocurrency are more likely to purchase from stores that accept cryptocurrency payments and that 47 percent of cryptocurrency owners are looking for businesses that accept cryptocurrency. The study revealed that two-thirds (65%) of cryptocurrency owners and over half of non-owners are of the opinion that not enough stores accept cryptocurrency payments.

No matter if you’re a huge or small-sized business owner, it’s fairly easy to start accepting cryptocurrency. Integration with a payment processing service that accepts cryptocurrency is a dependable solution for companies that accept payments on the internet, like online stores as well as service providers that accept invoices. Companies should consider the best crypto payment platform which not only allows instant payments between merchants and customer, but gives more functionality and ease of use for all participants. The primary advantage of payment gateways is the flexibility it gives for creating a custom collection procedure – be it online checkout, invoicing and subscription registrations. It’s true that these payment gateways are also compatible with other payment options, including mobile wallets and credit cards.

Another option for merchants looking to accept cryptocurrency is to utilize an online checkout form similar to Cardsknox’s PaymentSITE form. Hosted checkout forms can be integrated into existing websites or as a separate webpage that is sent via email or text. These forms are speedy and simple to set up and they’re completely secured. Hosted checkout forms such as PaymentSITE which support cryptocurrency have a button for cryptocurrency alongside the normal credit card fields as well as payment options for mobile wallets. To pay user clicks the button for cryptocurrency, then enters their personal information, and then the payment is immediately transferred.

What is the future for Processing Cryptocurrency

With the wide acceptance of cryptocurrency by leaders in the industry, such as Microsoft, Amazon, and Wikipedia It is essential that merchants stay on the cutting edge of accepting digital payments. It is likely that cryptocurrency-based payment technology to continue to transform the method by which customers pay. As we’ve explained in this blog the implementation of a cryptocurrency-based payment processing solution can bring valuable benefits for merchants in the form of lower costs per transaction, fewer chargebacks, enhanced protection against fraud, and increased cash flow. As cryptocurrency becomes more popular as a method for exchange, merchants are able to improve their business’s future-proofing and boost their profits by taking the steps to make the connection between the digital currency and changing customer demands. When you accept cryptocurrency as a method of payment it will allow you to attract greater customers, thereby increasing the reach of your business and increasing exposure for your company. For more information about our customized solutions to prepare merchants for accepting cryptocurrency Contact us today to get you going.