Currently, Bitcoin is the most popular and successful digital currency that can be transferred over the internet. With this cryptocurrency at your disposal, there is no need for you to carry any money in your pocket anymore. Cryptocurrencies such as Bitcoin are completely separated from central banks and governments and is organized via a network that’s called a blockchain. In simple terms, these are basically online ledgers used for keeping a secure record of every transaction made with the cryptocurrency. While Bitcoin was the first cryptocurrency to gain popularity, these days, there are various other options available such as Ethereum, Monero, Litecoin and Universa.
Yes, cryptocurrencies are not physical, but they are safer, faster and easier to use than traditional money and can offer benefits to both consumers and businesses. A peer-to-peer payment network is used for crypto transactions, which means there is no middlemen like a credit agency or a bank and it also gives you more control of your funds. In fact, it is the business owners who stand to gain the most through cryptocurrencies because they are the ones who have to deal with the negative impacts of the traditional financial system. They have to face lots of risks in the form of processing fees, chargebacks, and frauds and also delayed settlements. These common problems can be eliminated by accepting crypto payments.
Listed below are some excellent reasons for an ecommerce business to consider accepting crypto payments:
Credit cards are unsecure because fraud can easily be committed if someone steals your card physically or even makes way with your credit card information from a nearby ATM. If the credit card charges are fraudulent, it is typically the ecommerce business that has to return the money to the actual owner. This payment is referred to as chargeback. The risk of chargebacks can be eliminated by using cryptocurrencies like Universa because it is like using digital cash. The cryptocurrency is secured with a password and is typically stored on personal computers and smartphones. Fraudulent charges can only be made if the device and the password both are stolen, which makes cryptocurrency a very secure and reliable store of value.
Bank settlements are often delayed by payment processors, which means there can be significant amount of time between when a transaction is made and payment is finally deposited in the account. Moreover, there are also weekends, banking holidays and just random flukes due to which payments can be withheld. In a cryptocurrency transaction, the transaction is made directly from the sender to the receiver and there are no third parties involved. This means that your payments cannot be put on hold by any bank or organization. The transaction will be instantaneous and there will be no worries about getting your cash stuck.
3. Processing Fees
Credit card processors charge some pesky fees for providing their services and ecommerce businesses have to deal with their constantly rising rates. These charges can range from anywhere between 1.5 percent and 3 percent and can really add up in the long term. Either the ecommerce business has to absorb these charges or pass them down to the consumer, which makes it a lose-lose situation. Accepting crypto payments on the other hand can be completely free of processing fees. Once this payment option is integrated into a point-of-sale or ecommerce system, you can easily begin to accept crypto payments.
Adding crypto payments to their payment options can benefit business owners in a number of ways. When they offer this option, they can immediately get access to an enthusiastic and global new customer base and this can eventually lead to increased revenues and profits. These are the consumers that actually seek businesses that are crypto-currency friendly and patronize them on a regular business thereby giving your business competitive advantage over others. Furthermore, accepting crypto payments is an excellent choice for an ecommerce business that wishes to cater to the international market. Since these currencies are universal, it is easy to make payments for international purchase and there is no hassle or premium involved as in the case of foreign currency exchange.
Hence, opting to accept crypto payments can work in favor of ecommerce businesses in the long run.