You have probably already noticed that cryptocurrency is getting more and more popular all over the world. And it’s not just among people who work in tech or take an interest in alternative ways to store assets, but also among regular folks who are looking for an alternative to traditional finance.
There are many reasons for it, and we will get to them in this article. You will see that accept crypto payments has a lot of advantages both for businesses and clients.
Of course, before adding them as a payment option, you need to do some research and understand that there are nuances to them, but with the right approach and a trusted service provider, you can take your business to the next level. Let’s find out more about crypto payments and why they can be superior to credit card payments!
What is cryptocurrency?
Cryptocurrency is any digital currency that uses cryptography to make transactions secure. Bitcoin (BTC) was the first cryptocurrency ever invented, but there are more than 20 000 digital assets in the world right now. So everyone can find something they like in one of them and use it to their advantage.
Cryptocurrencies work on blockchains, which are essentially databases divided into a chain of blocks. Each block contains information about transactions with this cryptocurrency. Blockchain has a lot of copies located on many nodes, so it’s almost impossible to hack it or steal money from it. That’s why blockchain payment is safer.
Cryptocurrencies are also almost anonymous, as users give little to no information about themselves when using them. However, centralized cryptocurrency exchanges usually make people pass the KYC procedure, which requires them to show documents and give private information. It is happening because of the law in most countries. That’s why some users prefer to opt for decentralized exchanges that don’t ask for such details.
How do crypto payments work?
To give your customers the opportunity to pay for your goods or services in cryptocurrencies, you need to find a company that offers crypto-acquiring services. Such companies are like bridges between you and your clients. They take care of all the transactions, make sure everything is working correctly, and offer technical support. An example of such a service is Whitepay, a part of the WhiteBIT ecosystem.
Whitepay is a SaaS company that offers cryptocurrency solutions for businesses and charities. They provide crypto acquiring, POS terminals, and payment pages. You can select from more than 140 cryptocurrencies to accept for your business and open a new opportunity for your clients.
Whitepay’s crypto POS terminals work just like regular POS terminals. They accept both crypto and credit card payments. You can choose one or a few cryptocurrencies you want to accept payments in. Here is what happens whenever a customer wants to pay with digital assets:
- A customer states that they want to pay in crypto, and a salesperson selects this option on the screen of the terminal.
- The customer then selects the cryptocurrency they want to pay with and picks its standard (if necessary).
- The salesperson enters the price of the item in the currency used in the store (it can be euro, dollar, hryvnia, etc). The price in the cryptocurrency will be calculated automatically (it will remain frozen for 120 seconds).
- The customer reads and accepts the Terms and Conditions and clicks “Pay”.
- The customer then scans the QR code shown on the screen of the terminal and sees all the necessary information in the new window in a browser. They enter this information into their crypto wallet and complete the transaction.
- In the end, the status of the transaction will change, and the salesperson will give the client a receipt.
If a client transfers an incorrect amount of crypto, they can send what’s left to pay as a separate transaction. The business receives payments in digital assets and can exchange them for national currency.
Whitepay’s payment pages are great for online stores. They are customizable and work like other types of payments on a website (for example, PayPal or bank transfer). Here’s how it goes:
- A customer selects a product they want to buy and adds it to the basket/cart.
- The customer then proceeds to the basket and chooses the payment method.
- If the customer selects the crypto payment option, the price will be automatically calculated and frozen for 120 seconds.
- The customer scans the QR code on the payment page and sends assets from their crypto wallet.
The electronic receipt is generated after the transaction is completed.
Benefits of cryptocurrency payments
There are a lot of advantages businesses get from using cryptocurrencies as a payment method. The most significant of them are:
- They can help you grow your client base. Just imagine: there are over 420 million crypto users in the world. But they don’t like to spend too much time converting their funds to fiat money and back. That’s why direct crypto payments are so valuable for such people.
- They offer a high level of security. As you may already know, regular bank transactions can be reversed. This can cause a lot of problems for businesses, as there is always someone who wants to scam you. Crypto transactions, on the other hand, are irreversible, which is why you don’t have to worry about such things when accepting a crypto payment.
- They have low transaction fees. Cryptocurrencies work without intermediaries, which means fewer people need to “get paid” in the process. This and other factors significantly reduce fees.
- They are quick. Crypto transactions usually take minutes, if not seconds. Meanwhile, credit card payments can take a while.
- They can help your brand stand out from the crowd. When used correctly in the marketing strategy, crypto payments can be a great advantage for your business.
Traditional payments or crypto payments?
Let’s finally see why traditional payments can potentially be overshadowed by crypto payments in the near future. Here are a few reasons:
- Higher fees for transactions. Since the banking system is full of intermediaries and additional obstacles, the fee they take can be very noticeable.
- Higher risk of scams. As we already mentioned, traditional payments can be retracted. This means that you are not 100% safe from scammers who would buy a product and then reverse the transaction when paying a credit card.
- There can be issues when using traditional payments for international transactions. They are not only pricier but also slower and impossible in some countries. For example, if your business works from UK/United Kingdom, clients in other countries may experience some difficulties with payments.
- Longer waiting times. It’s no surprise that some banks may take up to a week to process a transaction. It’s not always the case, but happens sometimes.
- With only traditional payments in your store, you are missing a lot of clients who prefer using cryptocurrencies.
Let’s sum up
Cryptocurrency payments offer great advantages to both businesses and their clients. They are easy to implement into your online or offline store and give you an upper hand when it comes to standing out from your competitors. Some innovative companies, like Microsoft, Starbucks, Etsy, Overstock, Whole Foods, and many others, are already among the front-runners of the crypto revolution. Become one of the first movers and get new clients today!