A recent survey by Pymnts.com, a news website for the payments industry, has indicated that 23% of merchants are already accepting payments via crypto-native wallets.
Since crypto is virtual money, making it an inclusive and global payment option, as of 2023, it is estimated that global crypto ownership rates are at an average of 4.2%, with over 420 million crypto users worldwide. With the global cryptocurrency market predicted to grow with an annual growth rate of 56.4% to 2025.
Understanding this, online payment experts, Total Processing, have outlined the main advantages as to why small businesses should accept cryptocurrency payments.
Robert Pailin the CEO of Total Processing, Robert discusses the top reasons below as to why your business should look into accepting cryptocurrencies.
More clients – “By accepting cryptocurrency as a different form of payment, you’re attracting additional customers to your company. You can use virtual currencies to draw in new clients and give your company a contemporary feel. Also, more people than ever before are interested in buying, selling, and trading cryptocurrencies, thus a company can outperform its rivals by utilising blockchain technology. Finally, by accepting cryptocurrency, your company can attract clients who are searching for fresh, contemporary methods to spend their money.
More payment options – “Over the years, there has been an increase in alternative coins released. Utilising all of these into your business will provide your organisation and consumers with more payment options as you are more accessible across the market.”
“The fact that you may take cryptocurrency payments from anyone in the globe is arguably one of the most crucial elements though. Through cryptocurrency, an online business can be accessible worldwide, as anyone can make a purchase as long as they have access to the internet.”
“Also, you will be able to take payments from abroad without having to worry about tricky currency conversions or credit card chargebacks. Due to the decreased transaction fees, you’ll discover that many of your customers pay with cryptocurrencies.”
“The majority of popular cryptocurrencies are available for businesses to use. These are already compatible with point-of-sale systems and e-commerce websites, making it easier for many businesses to accept cryptocurrencies payments.”
Faster checkouts – “Cryptocurrency payments can be made anywhere. Because of this, they don’t have the same restrictions as regular cross-border payments. Additionally, because they transfer in real-time, their processing times are much faster leaving the merchant with access to the funds at a faster rate.
“Cryptocurrency solutions are advised for all online businesses due to their quick processing times, particularly for payments from abroad, as well as their potential for higher transparency, and overall lower transaction fees.”
Lower transaction fees – “When compared to conventional payment methods, cryptocurrencies have very little to no processing fees because they do not need to be confirmed by banks or card systems. Business owners may be able to retain more profit as a result of this. The trade of cryptocurrencies may potentially be speedier as a result of the lower processing costs, and, since each cryptocurrency is linked to a different blockchain, this will lower transaction fees even more if you are trading the same cryptocurrency.”
Protection from fraud – “Although crypto isn’t exempt from fraudsters trying their luck, once a transaction has been made, it can’t be reversed, limiting the amount of risk from a merchant’s point of view. Businesses who don’t have the time or means to staff themselves with security professionals for anti-scam defence can benefit greatly from accepting virtual currency.
“With cryptocurrencies, there is also not a possibility of someone cancelling their payment or getting their money back after they have made a purchase, meaning there is less chance of fraud.”
Smaller risk when trading – “A reduced risk is one of the benefits of accepting cryptocurrency payments, as using crypto allows you to trade comfortably without any stress of financial loss. Businesses can sell the crypto at a premium price when its value is high, but more importantly, your organisation won’t experience losses if the price of crypto declines because you haven’t yet converted your cryptocurrency to fiat currency.”
Important things to consider – “For businesses to receive crypto payments, you’ll need a payment provider with a gateway that can facilitate this type of payment.”
“However, there are compliance matters to consider. In the UK, the financial services and markets bill that’s progressing through Parliament should give the government new legal powers over certain crypto-related activities.”
“Just like any form of payment, cryptocurrency does come with its risks. But knowledge is key to help mitigate those risks. Here are the two main factors to be aware of; understanding the technology behind it and the financial markets volatility.”
“Unless you’re a crypto guru, decentralised finance (DeFi) can be very confusing. With new coins, technologies and metaverse developments being introduced all the time, it can be difficult to keep up.”
“However, market volatility is often easier to follow. You’ve probably seen on the news on more than one occasion that crypto has crashed. However, as a merchant, you can liquidate your crypto as soon as the funds are transferred to combat this risk. Volatility can be removed completely from crypto payments for both seller and buyer. Customers are shown an exchange rate at the point of purchase and merchants can choose to receive settlement in fiat, offering certainly regarding the amount.”
“The use of stablecoins can also keep volatility at bay for the long term. These remove all volatility from crypto payments, enabling rapid settlements. They are therefore much more suitable for merchants that are just gaining familiarity with crypto and digital wallets. Merchants can also benefit from volatility when the market goes the other way and the price value of crypto skyrockets.”
So, how long will it take to get set up with accepting cryptocurrency?
“Whether you’re new to payments or just looking to add crypto to your current payments solution, getting set up is quick and simple. At Total Processing, we operate on a same-day integration, so our team will get you ready to accept crypto payments in no time. However with most companies, depending on your industry, applications can take as little as a few working days.”
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