The time has come to start accepting Cryptocurrency as a currency on
Cryptocurrency. Bitcoin, Ethereum, Stablecoins, DogeCoin. For many, these remain unfamiliar terms with vaguely scary implications! However, there are lots of advantages to accepting cryptocurrency payments for your business and we'll go over them in this post.
Just as some customers prefer to use an online wallet (Apple Pay, Google Pay etc. ), others prefer cryptocurrency and may even search for stores that accept the currency. If you offer this service it expands your customer base and the potential to make sale.
If this seems like something that's too difficult, you'll be relieved to learn that you do not require becoming an expert in crypto . You just need to understand how all of the technical details function for you to make use of it. Some solutions even allow you to automatically turn crypto payments into your preferred currency - like U.S. Dollars - so you never miss any beat.
Recently, several companies have joined forces with payment processing providers that enable you to accept crypto alongside other payment options. Read on to learn the fundamentals of cryptocurrency and ways to make use of it for your store.
What is cryptocurrency?
Cryptocurrency can be defined as "A digital currency that is characterized by transactions are vetted and the records are maintained by a system that is decentralized by using cryptography instead of by a centralized authority." We will explain this:
For many currencies, including U.S. dollars, control ultimately comes down to a single entity that is central banks, which is accountable for establishing policies and regulating supply. Central banks try utilize these resources to minimize major shifts in value of currency to keep trust.
It may grant rights to smaller organizations - for instance, local banks - to oversee certain transactions, it is the sole authority to confirm that the dollar bill you hold in your palm is worth $1 goes back to the central source.
With crypto, instead of all of the power being held by centralized institutions - such as central banks or governments - the authority to design the, manage, and regulate cryptocurrency is distributed through computer networks that anyone can run.
They announce, confirm the process and security of transactions in order to establish uncentralized networks for communications and financial services. They verify transactions using complex algorithms called cryptography.
You've likely heard of two of the most popular crypto currencies such as Bitcoin and Ethereum (often called coins). However, cryptocurrencies take many forms and sizes, with one reputable site that keeps track of more than 9,500 currencies. There are some that have their own currency that can be volatile. Other are linked to a traditional or fiat currency, most often USD - and are known as stablecoins.
What do customers buy with cryptocurrency?
While many people use cryptocurrency as a form of investment, nearly 90% of cryptocurrency customers make use of Bitcoin to make payments online as well as in stores. The first quarter of 2021 Visa stated that over a billion dollars was spent on cryptocurrency-linked credit cards.
It is estimated that there are 33.7 million U.S. cryptocurrency owners. Source: Insider Intelligence
A study by PYMNTS and BitPay indicates that customers use cryptocurrency for a surprisingly wide range of purchase types. There's online gaming and retail. This is what you'd think, but over 30 percent of cryptocurrency enthusiasts also used it to buy grocery items. The same study found that there were 17 sectors that had a significant use of crypto to pay for everything from vehicles to jewelry, appliances and financial services transportation and tourism, and more.
Accept cryptocurrency payments and get the money in traditional currency
There are now crypto payment processors that automatically change your cryptocurrency into fiat currency and send the funds to your banking institution within hours. This is a service that some crypto partners offer.
This means that there is no need to buy, hold, or invest into cryptocurrency to accept cryptocurrency as a method of payment.
12 reasons to accept the cryptocurrency in your store
Stores should always work to offer both products and services that appeal to the market they are targeting, and to make transactions safe, simple, and smooth. As the introduction of digital wallets as well as other payment options like PayPal adds convenience for many customers, offering cryptocurrency can do similar things. It can also set you above the rest and increase the number of possible customers.
They also provide a broad array of security and management benefits for merchants themselves. We'll look at twelve reasons why you should consider accepting cryptocurrency on your store:
1. Pay anywhere, from any person anytime.
Why? because the price of an individual cryptocurrency is identical around the world. This can be particularly beneficial to international companies or businesses offering digital products and services which don't have to set the logistics for shipping to gain access to international markets.
2. You don't have to think about what currencies you can offer or deal with forex exchange rates for foreign currencies or manage the international Treasuries.
If you prefer to use cryptocurrency as crypto rather than automatically convert to settle it - you can use it for international payment to suppliers and contractors at identical fees and speeds.
3. Access to an expanding, large client base.
The estimates suggest that more than one billion people around the world have made investments in crypto. There are the equivalent of 46 million Americans trying Bitcoin in the first place. A vast majority of crypto users are aged between the ages between 18 and 35. This is a huge number of potential clients!
The market is expected to increase with crypto payments expected to nearly triple by 2030.
4. Customers can be converted to your company from the competition.
A US Crypto Consumers study found that more than 25% of people would prefer to shop at a store that accepts cryptocurrency and 32% of millennials believe"they're "very" as well "extremely" most likely shift to a retailer that takes cryptocurrency.
5. You're likely to boost your average order values.
Crypto customers tend to spend higher - particularly for luxurious goods and services and one report states that cryptocurrency orders are worth more than twice the value of an average order.
6. Crypto is now a mature ecosystem.
There are excellent integrations with established crypto payment providers that each have a range of distinctive, specific features for merchants. The customers complete over $1 billion worth of transactions every day between around one million active addresses in the Bitcoin or Ethereum networks by themselves.
7. You'll see faster settlements.
Pay your crypto wallet or bank account in just a few hours (or even instantly!) instead of waiting for days using traditional processors.
8. Enjoy lower transaction fees.
Crypto processors often charge around one percent as opposed to 2.5 percent for conventional payment processors.
9. Receive chargeback protection.
There's nothing like an unpaid chargeback in cryptocurrency, so once you've received your money, you can count on the money to be there. It's crucial to settle disputes with customers And there are fantastic tools around to help to resolve disputes, but using crypto puts you in control of the resolution.
10. Control the refunds.
There's no automatic refund feature in crypto. It's your decision on how and when you make refunds. Similar to chargebacks, that does not mean that you aren't required to issue refunds to customers. It simply puts you in total control.
11. Native purchase for crypto-assets.
NFTs (and other crypto assets) are a great source of thrilling and lucrative new revenue streams for merchants. Accepting crypto payment is the initial step towards exploring these opportunities.
12. Control your cash.
In some instances, payment processors may suspend or even cancel a merchant's account. There are a myriad of valid motives, however for merchants it may seem like a mistake. With crypto, however, you're solely responsible for the funds you have.
Merchants are taking note of their clients, and are convinced that the majority of customers have a strong interest in using cryptocurrency for payment. A majority of merchants believe that customer interest will increase over the next year, and more than 75% have reported plans to accept payments made with stablecoin. The same percentage said they would accept cryptocurrency transactions, as well, within the in the next 24 months. Source: Deloitte
Making the right decision regarding your store
Each situation is unique and although we've shared some valuable facts, it's still up to the merchant to decide the future of their store. We're not legal or financial professionals, so merchants should seek out their own certified, trusted advisers.
Do your customers have expressed an interest in paying with crypto? Have you observed other retailers adopt crypto payment options? Please let us know by leaving a comment!