It's time to begin accepting cryptocurrency on
Cryptocurrency. Bitcoin, Ethereum, Stablecoins, DogeCoin. For many, these remain uninitiated terms that have vaguely frightening implications! But, there are many advantages of accepting payments made in crypto on your store and we'll break them down for you in this piece.
Just as some customers would prefer using an online wallet (Apple Pay, Google Pay etc. ) Others prefer cryptocurrency and will even seek out retailers that will accept the currency. By providing this option to your customers, you increase the reach and potential for sales.
If you think it's a daunting process, you'll be relieved to learn that you do not have to become an expert on crypto, or be aware of how all the technical aspects work in order to take advantage of this. Some solutions even allow users to convert cryptocurrency payments into your preferred currency - like U.S. Dollars. This means you will never miss an octave.
Recently, several companies have joined forces with payments processing companies that allow you to accept crypto in addition to other payment options. Learn the basics of cryptocurrency and ways to make use of it for your online store.
What is cryptocurrency?
Cryptocurrency is described as "A digital currency that is characterized by transactions are recorded and verified are maintained by a system that is decentralized that employs cryptography rather than an authority that is centrally controlled." Let's explain:
In the case of the majority of currencies, like U.S. dollars, control ultimately comes down to one source like central banks, which has the responsibility of establishing policy as well as regulating supply. The central bank tries to make use of these power to minimize major shifts in value of currency to keep the trust of its customers.
It may grant rights to smaller institutions - like a local bank in order to supervise certain transactions, it is the sole authority to ensure that the money you carry in your palm is worth one dollar is given to the central source.
For crypto, instead of the entire powers being held by centralized institutions - such as central banks or governments - the authority to design, run, and govern cryptocurrencies is shared through computer networks that can be run by anyone.
These networks announce, verify the process and security of transactions in order to establish an uncentralized network of financial and communication networks. They verify transactions using an intricate algorithmic procedure called cryptography.
It is likely that you have heard about two popular cryptocurrencies that are bitcoin and Ethereum (often called Coins). However, cryptocurrencies take many forms and sizes There is a reputable website monitoring more than 10,000 currencies. Certain have their own worth that can be unstable. Other are linked to fiat or traditional currency - typically USD or USD - and are also known by the name of stablecoins.
What are the products that customers can purchase using cryptocurrency?
Many people utilize cryptocurrency to invest however, more than 80percent of cryptocurrency consumers utilize Bitcoin for online transactions and in stores. In the first half of 2021, Visa announced that over a billion dollars was spent using crypto-linked cards.
There are 33.7 million U.S. cryptocurrency owners. Source: Insider Intelligence
A study by PYMNTS and BitPay has revealed that people utilize cryptocurrency to make a diverse range of purchases. It includes online gaming as well as retail. This is what you'd imagine, but more than 30% of crypto enthusiasts were also using it to purchase food items. According to the same study, there were 17 industries that had a significant use of crypto for payments - everything from vehicles to jewelry, appliances, financial services, transportation and tourism, as well as many other.
Accept cryptocurrency payments and get paid in traditional currencies
Today, there are crypto payment processors that will automatically transform your cryptocurrency to fiat currency and transfer it to your bank within hours. This is a service that several crypto companies offer.
This means that it is not necessary to purchase, hold, or invest into cryptocurrency to be able to use cryptocurrency as a method of payment.
12 reasons to accept cryptocurrency on your shop
Stores should always work to offer both products and services that appeal to their target market, and also to make transactions secure, simple, and smooth. As including digital wallets or other payment options like PayPal makes it easier for lots of clients, offering cryptocurrency also can do similar things. It can also set you ahead of the others and expand your list of potential customers.
They also provide a broad array of security and management advantages to merchants. Here are 12 good reasons to begin accepting cryptocurrency on your store:
1. You can take payments from anyone, virtually anywhere and at any moment.
Why? because the price of each cryptocurrency is identical across the globe. This can be particularly beneficial to international companies or businesses offering digital products and services who don't require setting up shipping logistics to access global markets.
2. You don't have to think about the currencies that you'll be offering, deal with foreign currency exchange rates, or deal with international Treasury accounts.
If you decide to hold cryptocurrency as crypto rather than automatically convert to settle it - you could use it to make international payments to suppliers and contractors with the same low fees and speeds.
3. Access to an expanding, large customers.
The estimates suggest that over one billion people around the world have made investments in cryptocurrency, including the equivalent of 46 million Americans testing Bitcoin in the first place. A vast majority of cryptocurrency users have a age range between 18 and 35. This is a huge number of potential customers!
The market is anticipated to increase with crypto payments forecast to nearly triple in 2030.
4. You can convert customers to your company from the competition.
A US Crypto Consumers study found that over 25% of customers favor merchants that offer crypto as well as 32% young people say"they're "very" or "extremely" most likely change to a merchant that accepts crypto.
5. The likelihood is that you'll raise your order value by a significant amount.
Customers who use crypto tend to pay more - in particular for high-end products and services, with one report stating that cryptocurrency orders are worth twice the average value.
6. Crypto is now an established system.
There is a great integration with established crypto payment providers that each have a range of unique, merchant-specific features. The customers complete over 10 billion dollars in transactions every single day among around one million active addresses on Bitcoin and Ethereum networks in the midst of.
7. Settlements will be faster.
Receive payments to your crypto wallet or bank account in just a few hours (or even instantaneously!) instead of waiting for days to receive payments with traditional processors.
8. Enjoy lower transaction fees.
The average cost for crypto processors is one percent as opposed 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 it's safe to trust it. However, it's crucial to settle disputes with customers - and there are some fantastic tools available to assist to resolve disputes, but using crypto puts you in control of the process of resolution.
10. Control the reimbursements.
There's no automated refund option for crypto. It's your decision when and how you issue refunds. Like chargebacks, this does not mean that you aren't required to issue refunds to customers. It simply puts you in total the control.
11. Offer native purchasing of cryptocurrency assets.
NFTs (and other crypto assets) could provide exciting and lucrative opportunities for businesses to earn new income streams. The acceptance of crypto-based payments is the first step to exploring these new possibilities.
12. Directly manage your cash.
Sometimes payment providers can suspend or terminate a merchant's account. There's a variety of valid reasons, but for merchants, it could appear as if it was a mistake. With crypto, however it is your sole responsibility to the funds you have.
Merchants are listening to their customersand think that a lot of them have an demand for cryptocurrency for payment. The majority of merchants think that interest from customers will grow during the next 12 months, and nearly 75% reported plans to accept payments made with stablecoin. Almost the same percent stated plans to accept crypto payment, and both in the coming 24 months. Source: Deloitte
The right choice to your shop
Every situation is different and, though we've presented an important piece of details, it's the responsibility of merchants to make decisions about the future of their store. We're neither legal nor financial professionals. Therefore, merchants need to speak with their own experienced, trusted advisors.
Are your customers interested for crypto-based payment options? Have you seen other merchants adopt crypto payment options? Tell us about it in the comments!