Change is inevitable. So is the move towards a digital ecosystem. Cryptocurrencies are fast becoming a great addition towards the digitization. And why not? They provide merchants and consumers with unique benefits.
Digital currencies as a topic has been quite interesting in the past couple of years. The rise of bitcoin in 2017, which saw it reach an all-time high of $20,000 caught the attention of investors worldwide. Statistics, according to Statista, says that over 3.4 million people are actively using crypto wallets today.
But as much as the wave of cryptocurrencies has hit the globe, a considerable number still don’t know what virtual currencies are all about. Cryptocurrencies are a secure, versatile non-physical medium for buying and selling commodities online.
It’s sad if you don’t accept crypto payments. Travelling, food and clothing industries already accept crypto, why shouldn’t you? Sooner or later, you will realize that one way or the other, cryptocurrencies will find their way and become the mainstream payment means. And that’s largely due to the benefits they present the consumer and the merchant. Hence the sooner, the better.
We are discussing some of these benefits here today.
Low Transaction Fees
The difference in charges between the traditional payment system and cryptocurrencies is incomparable. 90 billion dollars were paid to MasterCard and visa in credit swipes fees only. And that’s in 2017 alone.
Every $100 dollar spent, $4 goes to the credit card companies. Also, there are credit card fees, debit card fees, ATM fees, overdraft fees, transfer fees, and every kind of fee they find worthy of charging you. With cryptocurrency payment systems, this is not the case.
For instance, BitPay, a crypto payment gateway charges users 0.5-1% per transaction. This, you will find is nothing compared to the traditional payment processes. Some exchanges won’t charge you for buying and selling crypto.
Protects Your Sensitive Data
Our banks obtain every bit of information they can afford to have about us. Our names, phone numbers, addresses, credit scores, and financial information among a lot of data. They also try as much as possible to know how we are spending our money. It’s thus impossible to have a little bit of privacy in our spending.
As for virtual currencies, it’s the complete opposite. Transaction data is limited to certain numbers. You only need to know the transaction ID and wallet address. The crypto payment processor will need your shipping address and name. Thus you don’t risk revealing too much about yourself
Cryptocurrencies are a sure way of sending and receiving money across the globe. And the transaction is instant. No waiting for the processing of transactions and no international fees charged. All you need is an internet connection to send funds wherever and whenever and in seconds. With banks, on the other hand, you have to wait for the transaction to be processed, and it will take you a little while for funds to reach the recipient.
No Chargebacks, No Third Parties
Businesses have complained that chargebacks cost them a lot of money. And they do. Chargebacks are basically when customers report fraudulent charges to Credit Card Company and end up using the product and service for free. The use of the immutable public ledgers can eliminate fraudulent chargebacks.
As for third parties, money moves directly to your crypto wallets, and no one has access to the wallet except you. Not even the government, nor can they keep an eye on your transactions.
So, if you want to stay ahead of the curve as a business owner, crypto is the way.