The Growing Acceptance of Cryptocurrency-based payment gateways for goods and services
Earlier this year, the US Congress was debating a massive financial package for reviving the pandemic-stricken economy. The House of Democrats in the USA proposed a bill that would enable the creation of a “digital wallet or digital dollar”. Why would they do this? Most probably to create a sovereign cryptocurrency. The world is moving towards a financial ecosystem where sovereign cryptocurrencies will eventually replace traditional paper currencies. Today, many countries have already created their own cryptocurrencies! The most recent being China.
Cryptocurrencies are the latest manifestation in cashless transactions and quite probably, will eventually replace credit and debit cards. Since the arrival of plastic debit and credit cards, the world has been in a gradual process of becoming more of a cashless society with each passing year. Paying for your day-to-day expenses via debit or credit cards is a lot easier and secure than traditional methods. Now it’s time for crypto. Why is it so much more advantageous than credit and debit card payment options?
Cryptocurrencies, like Bitcoins, are regarded as innovative but emerging disruptive financial technologies. Bitcoin’s blockchain methodology has allowed for a unique way of resolving the double-spending risk associated with digital currencies without depending on financial intermediaries or authorised 3rd parties. Its advantages lie in the new technologies that remove the need for an authorised third party or financial intermediary, such as banks, and then the cryptographic technology associated with it, enabling pseudonymity in case of internet-based transactions.
Advantages of Using Cryptocurrency Payment Methods
Greater acceptance of cryptocurrency-based payment gateways has led to massive repercussions across many business channels and companies appear to be striving to keep up with the cryptocurrency revolution. Online shopping is expected to reach $4 trillion, allowing cryptocurrency companies to exploit this opportunity and leading to the global acceptance of cryptocurrencies.
Today, more and more companies are gearing up to adopt Bitcoin and cryptocurrency payment solutions, because of its transnational, transparent, and secure method of processing payments. Implementing Bitcoin or another type of cryptocurrency as a payment mode delivers the following benefits for businesses:
1. Low Transaction Costs: The credit card companies charge an average of 2–4% commission. Cryptocurrency transactions demand a much lower fee on average often less than one percent.
2. Attracting New Customers: With the rising popularity of cryptocurrency, more users are willing to pay via crypto and demand this option from participating businesses.
3. Immediate Availability: As there is no 3rd party involvement in transactions, transactions become much easier and direct. Once the payment is done and validated, the amount goes straight from the buyer’s wallet into the vendors wallet and from there the vendor can access the funds immediately. You can convert your crypto assets into your AUD, USD, GPB or your desired fiat currency at the end of every transaction.
4. Eliminating Chargeback Fraud: The crypto transactions can’t be changed. Once the transaction is done, the money goes straight to the accounts. This is not in the case of credit card payments whose charges can’t be reversed.
5. Safe and Secure: Crypto-based transaction is considerably secured and is less vulnerable to fraud and DDoS attacks compared to traditional payment methods.
There are various cryptocurrency payment solution for providers that can help businesses with their payment processing.
E-commerce and Crypto-based Payment Method
E-commerce and crypto-assets complement each other nicely because both attract the internet-savvy user. Being an e-commerce retailer, you will view cryptocurrency in the same way as your business. This is another fast, transparent, secured, and relatively more convenient option of paying for goods and services. Research has shown that there is a high demand for a crypto-based payment method among the e-commerce customer-base.
Shortly Piptle will roll out a crypto assets wallet where the owner of the wallet can keep their Piptles and other digital currencies as well as the digital assets they have invested in.
The future is here now. This weekend, at the HOTA Markets on the Gold Coast, multiple vendors accepted digital currencies. You are now able to purchase something as basic as a bag of muesli using your smart phone, wallet, and the vendors iPad, which houses their wallet. This can all happen at a faster or similar speed to paying via eftpos.