The time has come to start accepting Cryptocurrency on
Cryptocurrency. Bitcoin, Ethereum, Stablecoins, DogeCoin. Many people are unfamiliar terms with vaguely scary meanings! However, there are lots of advantages to accepting cryptocurrency payments in your online store. We'll explain them for you in this piece.
As some consumers would prefer using an online wallet (Apple Pay, Google Pay etc. ) Others prefer using cryptocurrency, and even look for retailers that will accept it. By providing this option to your customers, you increase the reach and potential for revenue.
If you think it's an overwhelming process it's a relief to learn that you do not require becoming an expert on crypto, or know how the technical details function for you to make use of this. Certain solutions allow you to automatically turn cryptocurrency payments into your preferred money - such as U.S. Dollars - so you never skip any beat.
Recently, several companies have joined forces with payments processing companies that permit you to accept cryptocurrency along with other payment methods. Learn the fundamentals of crypto and how you can take advantage of it in your online store.
What exactly is cryptocurrency?
The term "cryptocurrency" is described as "A digital currency in which transactions are vetted and the records maintained by a decentralized system using cryptography, rather than an authority that is centrally controlled." We will explain this:
In the case of the majority of currencies, like U.S. dollars, control eventually falls to one source like the central bank that is accountable for establishing policies as well as regulating the supply. The central source attempts to use these powers to reduce major swings in the value of currencies to ensure confidence.
It may grant rights to smaller organizations - for instance, local banks in the oversight of certain transactions, ultimate authority to confirm that the dollar note you have in your palm is worth one dollar is given to the source.
With crypto, instead of all of the control being held by central institutions , such as central banks or governments - the power to create as well as run and manage cryptocurrencies is shared with computers in networks that can be run by anyone.
They announce, confirm processes, secure transactions to create uncentralized networks for communications and financial services. The transactions are validated by an intricate algorithmic procedure that is known as cryptography.
It is likely that you have heard about two popular cryptocurrency such as Bitcoin and Ethereum (often called coins). They come in many forms and sizes, with one reputable site monitoring more than 10,000 currencies. Certain have their own worth that can be unstable. Some are tied to fiat or traditional currency, most often USD or USD - and are also known by the name of stablecoins.
What do customers buy with cryptocurrency?
Although many use crypto as a form of investment and investment, around 80percent of cryptocurrency customers make use of Bitcoin for online transactions and in stores. In the first half of 2021 Visa stated that more than one 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 indicates that customers utilize cryptocurrency to make a diverse range of purchases. There's online gaming and retail that you would imagine, but more than 30 percent of cryptocurrency enthusiasts were also using it to purchase grocery items. The same study found that there were 17 sectors that had a significant use of crypto for payments - everything from cars to jewelry appliances and financial services transportation and tourism, and more.
Accept payments made in crypto - be the money in traditional currency
There are now crypto payment processors that will automatically transform your cryptocurrency to fiat currency and send the money to your bank in a matter of hours. This is a service that several crypto companies offer.
By using this option, you won't need to buy, hold, or invest in crypto in order to be able to use the method as a way to pay.
Twelve reasons why you should accept cryptocurrency on your shop
Stores should always work to both offer goods and services that are appealing to their target market, as well as to ensure that transactions are secure effortless, easy and simple. As adding digital wallets and alternative payment methods like PayPal makes it easier for lots of customers, offering cryptocurrency can do similar things. Additionally, it can help set your business ahead of the others and increase the number of customers you could attract.
Additionally, cryptocurrency offers a vast variety of security and management advantages to merchants. Let's take a look at 12 good reasons to begin accepting crypto on your website:
1. You can take payments at any location, by anyone anytime.
Why? because the worth of an individual cryptocurrency is the same across the globe. This can be particularly beneficial for merchants and businesses that are international or selling digital goods and services that don't need to set up shipping logistics to access international markets.
2. There's no need to worry about what currencies you can offer, deal with foreign currency exchange rates, or deal with the international Treasuries.
If you decide to hold cryptocurrency as crypto rather than automatically convert and settle it - you could use it to pay international contractors and suppliers with identical fees as well as speed.
3. Gain access to a large, growing customers.
It's estimated that more than one billion people around the world have made investments in cryptocurrency, including the equivalent of 46 million Americans testing Bitcoin alone. A vast majority of crypto users are between the ages of 18 and 35. This is a huge number of potential clients!
The market is anticipated to expand, with cryptocurrency payment volume forecast to over triple in 2030.
4. Customers can be converted from competitors.
It was found that the US Crypto Consumers study found that over 25% of customers favor merchants that offer crypto while 32% young people say"very" or "extremely "very" or "extremely" inclined to change to a merchant that accepts cryptocurrency.
5. It is likely that you will increase your average order values.
Crypto customers tend to spend more , particularly on luxury goods and services - with one report stating that the value of crypto transactions is twice the average value.
6. Crypto has become a mature community.
It is possible to integrate with well-known crypto payment companies that each have a range of distinct, unique features that are specific to merchants. The customers complete over 10 billion dollars in transactions each day, spread across 1 million active accounts in the Bitcoin as well as Ethereum networks by themselves.
7. You'll see faster settlements.
Pay your bank or crypto wallet in just hours (or even immediately!) instead of waiting for days to receive payments with traditional processors.
8. Enjoy lower transaction fees.
Most crypto processors charge 1percent, versus 2.5%+ for traditional payment processors.
9. Receive chargeback protection.
There's nothing like chargebacks in crypto when you've received your cash and you've received it, you're guaranteed the money to be there. It's essential to solve customer complaints There are great sources available to assist with that - but crypto puts you in control of the resolution.
10. Maintain control over refunds.
There's no automatic refund feature in cryptocurrency. It's dependent on you to decide to decide when and how you will issue refunds. Like chargebacks, that does not mean that you aren't required to issue refunds to customers. It just puts you in direct control.
11. Provide native purchase of crypto-assets.
NFTs (and other crypto assets) can offer exciting and lucrative opportunities for businesses to earn new income streams. Accepting cryptocurrency payments is the first step in exploring these exciting possibilities.
12. Take direct control of your cash.
Sometimes payment providers suspend or cancel a merchant's account. There's a variety of valid motives, however to merchants, it can be a sign of a miss. In contrast, with crypto, you're solely responsible for your money.
Merchants are listening to their clients, and are convinced that many have a significant desire to use digital currencies for payments. Most merchants believe the interest of customers will rise during the next 12 months, and more than 75% have reported plans to accept stablecoin payments. Almost the same percent reported plans to accept cryptocurrency transactions, as well, within the next 24 months. Source: Deloitte
The right choice to your shop
Every situation is different and even though we've provided certain important details, it's the responsibility of retailers to take decisions regarding the future of their business. We're not legal or financial professionals, so merchants should seek out their own certified and trusted advisors.
Have your customers expressed interest for crypto-based payment options? Did you see other businesses use crypto-based payment methods? Please let us know in the comments!