Have control over your money
Cryptography provides individuals and businesses with a sense of ownership over their finances. When you receive payment in the form of cryptocurrency, it is up to you whether you would like to keep it stored on the blockchain or exchange it for traditional fiat currency through third-party payment processors upon completion of the transaction.
It is essential to recognize that while it may be relatively straightforward to accept Bitcoin payments independently, attempting to manage multiple cryptocurrencies without external assistance can quickly become a complex and taxing task.
The primary motivation for most businesses not to create their cryptocurrency payment systems is that they either don’t bother with it or collaborate with other companies that can provide them with a level of flexibility beyond what they had imagined.
Higher level of security
Cryptocurrency derives its moniker from cryptography, a practice of encrypting sensitive data and private keys. These private keys are given to the currency holders as proof of ownership and access to their blockchain. To make payments using cryptocurrency, customers simply choose their digital wallet and authorize the payment.
Cryptographic methods are deemed to be more secure than payments made with credit or debit cards, as they do not require third-party validation. When a customer pays using cryptocurrency, their details are not kept in a centralized location which is prone to data breaches. The blockchain ledger is utilized to confirm and document each transaction, making it extremely difficult, if possible, to swipe someone’s identity.
Convenient and affordable implementation
Payment gateways that facilitate cryptocurrency processing can be quickly incorporated into e-commerce platforms, point-of-sale systems, hosted online checkout forms, billing or accounting software, and a lot more. These straightforward, all-inclusive integrations allow convenient settlement and documentation of all transactions.
Immediate cash flow
In contrast to the usual credit card or ACH funding process, which can take several days, cryptocurrency payments are promptly transmitted when the transaction is processed. This gives merchants more rapid access to resources and a consistent cash flow.
Dependable funding
Many merchants who are looking to incorporate cryptocurrency into their payment systems are worried about the market volatility that could affect their funded transactions. To address this issue and protect against price instability, various crypto payment gateways can convert cryptocurrency payments into fiat currency for immediate and dependable payouts. Merchants can rely on consistent financing and reduce the risks linked to market value changes. Furthermore, this creates a more reliable safeguard against inflation.
International application
In the modern digital age, businesses have no limitations when selling their products and services to customers worldwide. However, several obstacles can hamper this process, with the substantial cost of payment processing being one of the most prominent ones.
Cryptocurrencies enable global commerce without the need to sacrifice a large portion of one’s earnings or charge exorbitant prices for goods. It is noteworthy that Bitcoin has an identical value wherever it is used, and by eliminating intermediaries, transactions are both faster and more economical.
Hassle-free Mobile Payments
As companies strive to make their websites more compatible with mobile devices, an increasing number of transactions are being conducted on people’s cell phones.
Cryptocurrencies offer users the ability to make mobile payments faster, more securely, and more straightforward due to their decentralized structure.
Anonymity
The matter of cyber security remains a significant drawback of digitalization. Every year reports surface regarding serious data breaches that can lead to identity theft and financial loss. Cryptocurrency transactions offer great anonymity as users are able to determine the quantity and type of information they wish to share. Providing cryptocurrency as an alternative payment method can appeal to potential customers who prioritize their data security.
Overcome local regulations
If you operate a business which is available for people from all over the globe, then it’s very important to consider the different laws and restrictions regarding international trade. Crypto allows customers to make reliable payments without worrying about locally imposed taxes.
Approaching new markets and demographics
It is estimated that two billion individuals worldwide lack access to traditional banking services. In the United States, approximately seven percent of adults are unbanked. Cryptocurrencies provide an alternative solution, allowing everyone with an internet connection to become financially included. Rather than simply democratizing currency, Bitcoin allows businesses to reach out to burgeoning markets and make their products available to a broader range of people. This leads to an increase in customers, which subsequently creates more opportunities for sales.
Businesses which are accepting cryptocurrency payments
Shopify and Etsy allow individuals to create their own digital stores on their respective platforms and accept Bitcoin as a form of payment.
NordVPN and ExpressVPN both accept Bitcoin payments through the BitPay application.
The Microsoft Store offers the ability to purchase applications and Xbox games utilizing Bitcoin.
Twitch, the most renowned streaming platform, now allows Bitcoin as a payment method, meaning you can show appreciation for your favorite streamers by donating BTC to them
How to start accepting crypto payments as a merchant?
If you choose to proceed and begin accepting cryptocurrency, there are a few steps that must be taken. Generally speaking, the process is comparable to setting up a credit card processing service.
It is essential to determine whether you would prefer to have a processor handle payments or if you wish to manage them yourself. Utilizing a processor will make the process easier; you can register with an organization such as BitPay or PayPal to begin accepting payments.
Rather than accepting payments in cryptocurrency manually, the process is more complex. You will need to create an account on a crypto exchange platform like Coinbase for customers to send you their payment. Additionally, you can incorporate features into your website, such as a QR code that allows customers to transfer crypto to your exchange account.
Finally, you must take action to remove your cryptocurrency from your trading platform, either by transferring it to a wallet or exchanging it for currency and sending the money to your business banking account.
What to consider before starting to accept payments in crypto?
First, you have to decide whether you want to integrate a certain payment gateway, which would manage all financial dealings or you prefer to be the one in charge of that. Choosing the right gateway provider and the proper crypto wallet is salient to the success of any crypto payment process. You must also have a clear vision about the way you wish to proceed with the earned crypto and establish a sustainable strategy, which would fulfil your needs. If you don’t want to be a crypto holder, then there’s always the option of instant conversion to fiat currencies.
It is essential to be mindful of the regulations if you are looking to establish a lasting cryptocurrency system. It would help if you took caution regarding both short-term and long-term holdings and any applicable regulatory and compliance laws in your country. Any efforts you undertake now to adhere to the regulations will pay off in the long run by reducing the need for expensive consultations with legal and financial professionals. This includes meeting anti-money laundering (AML) and know-your-customer (KYC) standards, and filing taxes correctly, as well.
Conclusion
The more every individual or institution learns about crypto, the better it would be for all who wish to gain a certain level of financial freedom. Open-minded business owners should always be up-to-date with the current trends both in marketing and finance. Implementing crypto as a form of payment is beneficial for all parties which would like to narrow down additional costs and make the most out of their assets. And although it all may seem way too good to be true, there’s always a way out if you’re not certain about proceeding with the provision of this payment option.
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