Despite the current crypto bear season, the crypto ecosystem keeps growing. There is an increased crypto usage through payment systems. Customers now use cryptocurrencies to sort their purchases from different merchants. Merchants now use crypto payments to win more customers globally.
A crypto report revealed that 85% of businesses that earn up to $1 billion annually leverage crypto payments to onboard new customers across the digital ecosystem. And one of the merchants’ primary reasons for adopting crypto payments is the elimination of an intermediary during a payment process.
Another reason cited is the low transaction costs associated with the crypto payment method. Crypto transaction fees are lower when compared to the transaction fees of existing traditional systems. Crypto transactions charge close to 1%, which is the one-third charge of other payment services like credit cards.
Crypto Ecosystem Thrives with Global Adoption Despite Crypto Winter
It is mysterious to think that the crypto ecosystem can still thrive during the ongoing market crash. That might bring you to the question of crypto volatility while individuals see the need to engage crypto instead of staying away from it. The answer is not far-fetched.
The crypto ecosystem keeps thriving due to the continued global adoption in the space. Every day, individuals, groups, and nations keep exploring the possibilities surrounding crypto. Likewise, they keep seeking ways to maximize their technological benefits. An example is what merchants do these days. They leverage crypto payment gateways to execute their payment processes.
With the rising global adoption of crypto payment gateways, consumers within the crypto ecosystem now have the option to pay for goods and services with cryptocurrencies. This crypto integration into the payment system makes it easy for crypto investors and traders to conduct businesses on different platforms. Thus, there is an increased crypto usage despite the existing market crash.
This spans from retailers allowing users to checkout with crypto to online services such as airline booking platforms accepting crypto as a payment option. This enhances the crypto global adoption movement.
Why Crypto Payment is Gaining Momentum with Merchants
As a business owner looking to expand operations across other borders and serve more customers, one of those factors is to consider the available payment options. That’s because you want to be sure that your customers have a seamless payment process that won’t frustrate their purchase journey.
Likewise, you want to ensure that your business does not run through expensive payment gateways that will take enormous processing fees from you. These payment gateways charge higher when compared to crypto payment options. Also, processing intercontinental transactions might be a huge cost for you. Let’s examine five (5) significant reasons you should consider using crypto payment options.
- Elimination of Intermediary
As a business owner, you know that you can’t successfully run a business and receive payments, except there is an intermediary between you and the customers. This is common when you use other payment options. Central banks and third parties such as Visa, Stripe, and other payment gateways interfere with your payment process. But with the crypto payment option, you receive your payment directly from your customers.
- Lower Transaction Fees
The most significant reason merchants use the crypto payment option is the lower transaction fees charged for each payment. Comparing this to the cost of credit or debit purchase, the transaction fee is considerably lower for the crypto payment option. And small businesses can leverage this instead of paying higher fees than their big competition.
- Zero Chargebacks
Chargeback is a centralized movement to return customers’ money when they claim they’ve not received the product, or the product is in bad shape. This can become a dangerous tool to ruin business for merchants when customers receive their products in good condition and still go ahead to request chargebacks. But crypto payment option prevents such from happening because making a crypto payment is irreversible.
- Cross-border Payment
With cryptocurrencies, your international customers can pay effortlessly without the hassles of payment gateways. That’s because they only need access to the internet and a crypto wallet to make such a purchase. Crypto payment gives you access to a broad audience across borders.
- Fast Transaction Speed
Typically, the credit or debit card payment method delays cash before a merchant can get a hold of it. When a customer makes a payment through this system, the money is held for days or weeks before being released to the merchant. That’s because there may be a chargeback request. But for crypto payment, the money is released immediately after the customer makes the payment. And there is no chargeback on any payment done.
Crypto Payment Challenges That Might Keep Merchants Away
As much as merchants are working toward incorporating crypto payment gateways into their day-to-day businesses, a particular percentage still have reservations about it. Those reservations are the checkpoints wherein these merchants refuse to buy into crypto payment integration. They perceive it as a risk that you can’t overlook.
The major challenge merchants face when leveraging crypto is the technical challenges associated with its implementation. It is a hurdle for merchants to overcome before accepting crypto as a payment option. Often, the implementation problem occurs at the checkout.
How Crypto Payments Will Influence the Future of Payments
When you consider the advantage of using a crypto payment option to the traditional payment system, you will argue that crypto payment will influence how businesses operate in the future. That is because crypto payment comes with many benefits that set businesses aside while they leverage them.
One of those benefits is the transparency attached to the crypto technology. This means that no individual can tamper with the original data, and there won’t be any information fraud in its slightest form. That is, everyone is aware of those involved in a transaction.
Crypto’s fast processing time makes it the best alternative to receiving payment for businesses instead of waiting for hours or days for the processing time of the traditional payment gateways. These gateways have extended processing time.
In no time, crypto payments for businesses will become the next hot debate in the media. Some companies have reported having their income multiplied due to that. But it won’t go without mentioning that it has its challenges too. Sometimes, they are insignificant.
