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Cryptocurrencies have grown in popularity in recent years, and more businesses and people are increasingly accepting them as payment. One of the main benefits of accepting crypto payments is the lower transaction fees as compared to traditional fiat payments. In this blog, you will learn how cryptocurrencies are cheaper than traditional fiat during the payment.
As of right now, it’s safe to say that cryptocurrency in general has become a brand new and exciting medium of trade for both new cryptocurrency users and businesses hoping to expand their footprints in unregulated financial markets.
It is no longer strange to use cryptocurrencies to pay for goods or services. Companies from nearly every industry you can think of have started trading, transacting, or accepting payments without intermediates on decentralized networks because it fits their business model or because cryptocurrency payment methods support traditional ones. This was not feasible before the creation of cryptocurrency.
However, there are a lot more considerations to make if you’re starting to question if it would be prudent to accept crypto as a payment method. For everyone, it could even be a great one!
Even though hundreds of businesses already accept cryptocurrency payments as a viable payment method, recent research by cryptocurrency exchanges shows that there is still a substantial gap between merchant acceptance and customer demand.
Despite the growing interest, only 4% of stores currently accept cryptocurrency payments, even though 60% of them expressed interest in the option, according to a new study that includes almost 1.5 million merchants and a modest 110,000 customers.
Cryptocurrencies are incredibly attractive to many people for a variety of reasons, including the fact that they are quicker, less expensive, easier, more private, or occasionally all of the above at once.
The same is true for businesses that have cryptocurrency payment options set up. These businesses profit primarily from avoiding many problems and hurdles that come with using more conventional payment methods like bank transfers or credit cards as well as from taking advantage of new opportunities that would not otherwise be possible.
Expand your customer base by accepting cryptocurrency payments. Seamless integration, global reach, and secure transactions.
For the following reasons, merchants who integrate cryptocurrency payment rails into their business operations will always get benefits:
The customer’s location has nothing to do whatsoever with the speed or cost of transactions when they use crypto assets. Since most blockchains settle crypto transactions instantly, payments are typically processed in a matter of seconds. Even Bitcoin and Ethereum payments often take longer to process and can be identified and securely accepted as paid before they are fully validated on the blockchain by using cryptocurrency payment processing services like MaxelPay, and CoinGate. Every one of these transactions is publicly visible on the public ledger and is trackable in real-time.
Cryptocurrency transactions don’t require bank accounts or credit/debit cards. Whether you sell goods or services in-store, ship their merchandise to another continent, or even collect money from business associates, merchants can benefit from this.
Businesses that use cryptocurrencies and cryptos themselves have no boundaries. Having cryptocurrency as a backup plan can always be helpful in any situation.
Let’s say your company frequently conducts business abroad. When converting currencies is involved, cross-border payments through various banks and accounts can become annoying, further leading to challenges including delays and extra expenses.
On the other hand, there are no cross-currency settlements involved when payments are made or received in cryptocurrencies. Moreover, cryptocurrencies eliminate the need for managing fiat currency exchange rates and procedures, which can be costly and time-consuming.
For most organizations, it might not be the most applicable benefit, but in some cases, it might help you further appreciate the simplicity that cryptocurrencies offer.
Traditional payment processors charge merchants around 2.9% per transaction, plus 30 cents. Cryptocurrency payments can reduce these costs, though merchants may incur fees when using third-party processors for fund management and services.
However, cryptocurrency transaction fees can fluctuate based on network congestion, and during high demand, gas fees may exceed the transaction amount. Generally, though, cryptocurrency offers lower fees than traditional methods.
Most eCommerce professionals had to handle the consumers who called their banks to request a chargeback for goods or services at some point.
There are a number of reasons why customers start chargebacks: some forget what services they have subscriptions to and become concerned that their credit card is being charged for arbitrary purchases; others want to take advantage of consumer protection laws and get a bank refund for a product or service that has already been used.
Nevertheless, it seems that consumers are rarely able to distinguish between a chargeback and a refund, which leads to up to 80% of chargebacks being submitted incorrectly.
The situation becomes so-called friendly, or fraud when some people call the bank and request a refund instead of contacting the retailer.
It is never pleasant to deal with false chargebacks, but it is vital because every uncontested chargeback can cost a merchant large bank penalties and the loss of all sales revenue. Moreover, a credit card processor may think about terminating payment processing services for a specific customer if a merchant receives an excessive number of chargebacks relative to the number of his orders. Regretfully, merchants rarely win when defending because card issuers give preferences to customers.
The good news is that since blockchain transactions are irreversible once confirmed, fraudulent chargebacks are eliminated. Such a payment mechanism can greatly lower the risks indicated, even if it is only available as an additional payment option.
A study of BitPay users by research and advisory firm Forrester Consulting found that 40% of users are new to the merchant and opt to pay using cryptocurrency. Additionally, clients who use blockchain for payments spend twice as much as those who use credit cards, and if they have a good experience, they are more likely to come back.
Businesses that target the educated male population under the age of 34 should pay with cryptocurrency since they hold the largest portion of the world’s decentralized wealth.
This leads us to the next point: letting customers spend that money at your business could greatly boost total sales and revenue.
Crypto allows anyone, including businesses, to regain true ownership of funds without the need for intermediaries like banks. You have the option of keeping your cryptocurrency payment exactly as it appears on the blockchain or instantly exchanging it for local fiat money using third-party payment processors as soon as the final settlement is received.
It's important to keep in mind, though, that while receiving crypto payments on your own may seem simple, gathering several coins at once without outside assistance may easily turn into a never-ending hassle and a tax nightmare.
This is the primary reason why the majority of firms either don't bother at all or collaborate with other organizations that can handle all the work for them and even provide the freedom they never would have imagined.
The majority of cryptocurrency payment systems provide free e-commerce integration. MaxelPay is no different. Accepting cryptocurrencies for the business is simple, and there are no connection fees. You can use pre-made e-commerce plugins for WordPress, WooCommerce, or a variety of other platforms, or you can integrate payments into your service using the PHP API SDK.
Get Started with MaxelPay and open your business to a world of cryptocurrency payments.
The simplest method for taking online payments in a large number of different cryptocurrencies is MaxelPay. This service is offered globally, offers competitive fees, and is custody-free.
The site accepts more than 50 cryptocurrencies.
It is simple to integrate plugins and APIs.
This non-custodial service guarantees the security of your money.
A relatively easy setup.
Cryptocurrency payments offer businesses a cost-effective, secure, and globally accessible alternative to traditional fiat systems. By removing high transaction fees, streamlining cross-border payments, and preventing fraudulent chargebacks, cryptocurrencies address many challenges merchants face with conventional payment methods.
Moreover, accepting crypto can attract tech-savvy, high-spending customers, expanding a business’s reach and revenue potential. Solutions like MaxelPay make it easy to integrate cryptocurrency payments, offering low fees, seamless processing, and support for over 50 digital currencies. Adopting cryptocurrency not only lowers costs but also positions businesses as leaders in financial innovation, ready to embrace the future of decentralized payments.
