6 Factors of Crypto Payments That Can Help You Boost Your Business
The trend of digital payments has completely changed the way of transacting. However, some factors like efficiency, higher fees, and security are still creating obstacles in adding more merchants to this payment method. Rather than blaming individuals, let’s say these may be the drawbacks of their dependence on centralized authorities.
So, reducing or eliminating the dependence on centralized authorities may eliminate all these drawbacks. But it brings some change, where cryptocurrencies replace fiat currencies and offer a bunch of advantages over them. As a merchant, one mustn’t delay in integrating crypto payments into their checkout system as some reputed names have already taken the initiative and started experiencing a boost in their businesses.
One must be curious to know how crypto payments can be so effective. Starting from decentralization, there are several factors that can contribute to the legacy of crypto payments and can be effective in the revenue of the businesses as well. We’ll take a look at them in brief. First of all, let’s know what these factors are:
- Decentralization
- Global Accessibility
- Security
- Lower Transaction Fees
- Faster Settlements
- Financial Inclusion
- Decentralization
Crypto payments rely on decentralized networks. The dependency on blockchain technology eliminates the need for intermediaries like banks and other centralized authorities. Accepting crypto payments allows merchants to have complete control over their funds. This eliminates the formality of currency conversions and increases the convenience of cross-border digital transactions, which may cause a higher number of international buyers for merchants.
- Global Accessibility
The financial freedom of crypto payments makes them accessible anywhere. Anyone who has an internet connection, a reliable crypto payment gateway, and a compatible crypto wallet can accept crypto payments. This has caused a wide adoption of cryptocurrencies and made them an inclusive solution for making payments. Also, crypto payments can be made without needing a bank account or any other TradFi essentials.
- Security
Cryptocurrencies possess strong security measures that ensure unbreakable transaction security. In contrast, there are some risks with traditional payments such as hacking threats and data breaches that are usually reduced with crypto payments. The presence of decentralization prevents hackers from tampering with transaction records and enhances the integrity of digital transactions.
So, crypto payments clear all the basics of transaction security. But protecting your funds after accepting crypto payments is also necessary. Flawless processing of crypto transactions requires a medium, popularly known as the ‘crypto payment gateway’. So, finding a crypto payment gateway, which offers some additional account security features is going to protect your funds.
- Lower Transaction Fees
Traditional payments often involve a few intermediaries, which are simply not present in crypto payments. For example, banks, centralized authorities, or other intermediaries may charge high fees for processing transactions. However, these intermediaries aren’t usually present in cryptocurrencies, resulting in lower transaction fees, especially in cross-border transactions. This can help merchants retain a larger portion of their digital assets.
- Faster Settlements
Settlement times are faster in crypto payments as compared to traditional payments. Traditional cross-border transactions usually take a few days or weeks (sometimes), which can be completed within minutes using cryptocurrencies. This speed and efficiency can be beneficial for businesses, especially e-commerce merchants who have expanded their businesses globally.
- Financial Inclusion
Every individual has equal opportunities in the crypto world, regardless of his socio-economic background. Cryptocurrencies give financial freedom to unbanked or underbanked individuals to access services at their full potential. This reduces the conditions for consumers to participate in crypto payments. Fewer restrictions may cause a higher number of consumers, which can broaden a merchant’s customer base globally.
Conclusion
The introduction of crypto payments had the purpose of overcoming the flaws of fiat transactions. Overcoming such flaws is highly possible with some necessary efforts and involvement from some parties (especially participants).
All these pros indicate the potential of crypto payments. Including crypto payments in the checkout system can definitely cause some positive changes and may help merchants boost their businesses. The selection of a crypto payment gateway plays a crucial role in the growth of businesses.
[Disclaimer: This article is based on a few researches and predictions. Results may be inaccurate or opposite. The author isn’t credible for any result.]
