Businesses and customers alike are increasingly accepting cryptocurrency and stablecoins as a form of payment. Think about the pros and cons of accepting digital currency payments before deciding on a crypto payment provider.
Why should businesses consider enabling cryptocurrency purchases?
Lower transaction costs, fast settlement times, a decrease in fraudulent chargebacks, and access to a wealthy and expanding client base are the key advantages of accepting crypto payments.
- Decreased Costs per Conversion
The average transaction charge for a company that accepts credit or debit cards today is about 3%. It costs $30 to process $1,000 in sales through a credit card processor.
Card transaction fees are still a substantial burden for companies, particularly those with overseas consumers who may face extra foreign currency expenses despite rules cutting these fees in certain countries.
Depending on the blockchain network if you start to accept crypto donations it may lower transaction costs for local and global clients.
The low transaction fees on Layer 2 networks like Optimism and Arbitrum are comparable to the high gas charges on Layer 1 blockchains like Ethereum, which typically hover in the single digit cent range.
- Instantaneous Funding
Instantaneous settlement is made possible when cryptocurrencies are used as payment methods. Without intermediaries, you can have your money in minutes or seconds.
Unlike credit cards, there is no 24-48-hour wait. This almost quick settlement time may be a huge benefit for organizations who need to keep a tight rein on their cash flow.
- Chargeback fraud has decreased
Fraudulent chargebacks are a hassle to deal with and increase the possibility that cash from a genuine client transaction may be reversed. Due to the immutability of blockchain transactions, this is never an issue with crypto payments.
Instead of being at the mercy of chargebacks, companies may take responsibility of the refund and error payment process by establishing internal procedures.
- Reaching affluent and expanding markets
Triple-A, a supplier of cryptocurrency payments, estimates that there are currently more than 420 million cryptocurrency users globally. J.P. Morgan claims that the typical cryptocurrency user and buyer is a young, well-off male. One strategy to reach this new demographic and satisfy their needs is to accept cryptocurrency as payment.
DAOs have grown with individual users. New businesses are attractive candidates for accepting cryptocurrency payments since they possess digital assets in their treasury and need to spend them to fund their operations.
Get on Board with Cryptocurrency Payments
Businesses and consumers should examine the pros and downsides of accepting cryptocurrency.
Do you want to begin receiving cryptocurrency contributions in total privacy? BitHide should be your only stop. You may have full access and management of your data with a leading self hosted crypto payment gateway. BitHide is an all-in-one solution for receiving cryptocurrency payments, with advanced administrative features. Accept cryptocurrency contributions immediately after installing BitHide on your servers.
You should start taking cryptocurrency if you’re a charity trying to increase your donation pool. As a result, you’ll spend less money on transactions.
Create a private and simple cryptocurrency wallet with BitHide. In addition, you may be quite honest with your benefactors and maintain meticulous financial records.
