It's time to begin accepting Cryptocurrency as a currency on
Cryptocurrency. Bitcoin, Ethereum, Stablecoins, DogeCoin. These are unfamiliar terms with vaguely scary implications! There are numerous advantages of accepting payments made in crypto on your store and we'll go over them in this post.
Like some people would prefer using a digital wallet (Apple Pay, Google Pay etc. ) Others prefer to use cryptocurrency and even look for stores that accept cryptocurrency. With this feature to your customers, you increase the reach and increase the likelihood of sale.
If it seems like an overwhelming process You'll be glad to know that you do not require becoming an expert in crypto or be aware of how all the technical details function to take advantage of the technology. Some solutions even allow users to convert crypto payments into your preferred money - such as U.S. Dollars - so you never skip a beat.
Recently, we have partnered with a variety of payment processing providers that permit you to accept cryptocurrency in addition to other payment options. Find out the fundamentals of crypto and how you can benefit from it when you run your business.
What is cryptocurrency?
Cryptocurrency is described as "A digital currency where transactions are vetted and the records maintained by a decentralized system using cryptography, rather than by a centralized authority." Let's explain:
When it comes to most currencies, such as U.S. dollars, control eventually falls to one source, such as the central bank that is accountable for establishing policies and regulating supply. The central bank tries utilize these resources to limit major fluctuations in the value of currencies to ensure trust.
It may grant rights for smaller establishments - such as an institution in your local area in the oversight of certain transactions, ultimate authority to confirm that the dollar note you have in your hands is worth a dollar goes back to the central source.
In the case of crypto, in lieu of power being held by centralized organizations - like central banks and governments, the power to create as well as run and manage cryptocurrency is distributed by networks of computers that anyone can run.
The networks are able to announce, validate, process, and secure transactions to create decentralized financial and communications networks. These transactions are verified through a complex algorithmic process that is known as cryptography.
You've likely heard of two popular cryptocurrency: Bitcoin as well as Ethereum (often called Coins). But, they come in a variety of dimensions and shapes There is a reputable website monitoring more than 10,000 currencies. Some have their own value that can be unstable. Some are tied to a traditional or fiat currency - most commonly USD or USD - and are also known as stablecoins.
What are the products that customers can purchase using cryptocurrency?
While many people use cryptocurrency for investment purposes, nearly 80percent of cryptocurrency customers use Bitcoin to pay online and in stores. For the first six months of 2021, Visa announced that more than a billion dollars was spent using bitcoin-linked crypto cards.
There are 33.7 million U.S. cryptocurrency owners. Source: Insider Intelligence
A study conducted by PYMNTS and BitPay has revealed that people utilize cryptocurrency to make a wide range of purchase types. It includes online gaming as well as retail, which you might expect, but more than 30 percent of cryptocurrency enthusiasts have also utilized it for grocery items. According to the same study, there were 17 sectors that had a significant use of crypto in payments, ranging from jewelry to vehicles, appliances, financial services, travel and tourism services, and more.
Accept payments made in crypto - be payed in the traditional currencies
Today, there are crypto payment processors that automatically change your cryptocurrency into fiat currency, and then transfer the money to your bank in a matter of hours. This is a service that several crypto companies offer.
This means that it is not necessary to purchase or hold in cryptocurrency in order to accept the method as a way to pay.
Twelve reasons why you should accept the cryptocurrency in your store
The stores should strive to offer both products and services that appeal to the market they are targeting, as well as to ensure that transactions are secure, simple, and smooth. Just as adding digital wallets and alternative payment methods like PayPal makes it easier for lots of clients, offering cryptocurrency also is similar things. It can also set you ahead of the others and increase the number of possible customers.
Additionally, cryptocurrency offers a vast range of management and security advantages to merchants. Let's take a look at twelve reasons why you should consider accepting cryptocurrency in your shop:
1. Pay anywhere, from any person, at any time.
Why? because the worth of a particular cryptocurrency is similar across the globe. This is especially useful for merchants and businesses that are international or who sell digital services and goods who don't require setting an infrastructure for logistics of shipping in order to get access to international markets.
2. You don't have to think about what currencies you can offer to foreign exchange institutions, manage foreign currency exchange rates, or deal with the international Treasuries.
If you prefer to use cryptocurrency as crypto instead of converting it automatically and then settle it, you can use it to make international payments to suppliers and contractors at the same low fees and speed.
3. Gain access to a large, growing client base.
The estimates suggest that over a billion people worldwide have invested in crypto. There are 46 million Americans trying Bitcoin on its own. A vast majority of cryptocurrency users have a age range of 18 to 35. That's a lot of potential customers!
The market is expected to increase with crypto payments forecast to nearly triple by 2030.
4. You can convert customers from your competitors.
The US Crypto Consumers study found that over 25% of people prefer merchants who offer cryptocurrency and 32% of millennials believe"very" or "extremely "very" as well "extremely" likely to shift to a store that accepts cryptocurrency.
5. You're likely to increase your average order values.
The customers who are crypto-savvy tend to spend more , particularly on luxury goods and services - and one report states that crypto orders have twice the average value.
6. Crypto has become a mature community.
It is possible to integrate with established crypto payment providers and each one comes with a variety of unique, merchant-specific features. Customers complete more than 10 billion dollars in transactions each day, spread across 1 million active accounts on Bitcoin and Ethereum networks alone.
7. There will be quicker settlements.
Receive payments to your bank or crypto wallet in just hours (or even instantaneously!) instead of waiting for days using traditional processors.
8. Benefit from lower transaction charges.
Most crypto processors charge 1% compared to 2.5%+ for traditional payment processors.
9. Receive chargeback protection.
There's never an unpaid chargeback in cryptocurrency and once you've received your money and you've received it, you're guaranteed it. Of course, it's still important to resolve customer disputes And there are great tools available to assist with that - but crypto gives you control over the resolution.
10. Control the reimbursements.
There's no automated refund option in cryptocurrency. It's up to you on how and when you make refunds. Like chargebacks, this does not mean that you aren't required to issue refunds to customers. It is just putting you in complete control.
11. Native purchase for crypto assets.
NFTs (and other crypto assets) could provide exciting and lucrative potential revenue streams for retailers. Accepting cryptocurrency payments is the first step towards exploring these possibilities.
12. Control your cash.
Some payment companies will suspend or cancel accounts of merchants. There are a myriad of valid reasonsfor this, but for merchants, it could appear as if it was a mistake. Contrary to that, when you use crypto it is your sole responsibility to your funds.
Merchants are taking note of their customersand think that a lot of them have an demand for electronic currencies to pay. Most merchants believe the interest of customers will rise over the next year, and more than 75% have reported plans to accept stablecoin transactions. Almost the same percent reported plans to accept cryptocurrency payments, both within the next 24 months. Source: Deloitte
The right choice for your store
Each situation is unique and although we've shared some valuable details, it's the responsibility of the merchant to decide the future of their store. We're neither legal nor financial professionals. Therefore, merchants need to speak with their own experienced and trusted advisors.
Do your customers have expressed an interest to pay with cryptocurrency? Have you seen other merchants use crypto-based payment methods? Tell us about it in the comments!