Cryptocurrency has been gaining traction steadily since Bitcoin’s inception in 2009. It is hard to go anywhere nowadays without hearing someone raving about crypto, and rightfully so. Cryptocurrency is a new method of currency that surpasses governmental institutions from having any control over your money. Crypto works using blockchain, a decentralized approach spread across different computers that manage and record transactions. Users of crypto praise this technology for its high level of security. However, one hurdle that many crypto holders face is the lack of places to spend cryptocurrency at. So, if you are interested in accepting bitcoin or other forms of crypto, a payment gateway is what you will need.
Why You Need a Gateway
While Bitcoin is the most popular form of crypto, more than 13,000 different cryptocurrencies are traded publicly. With crypto skyrocketing in popularity, newcomers may not realize how difficult it can be to spend their crypto as is. In most situations, an individual’s holdings in crypto need to be converted to fiat currencies (standard currency) before the user can spend them. Since its inception, users have been hungry for ways to spend their crypto without having to convert. This is where a payment gateway for cryptocurrency comes in. Payment gateways offer an advanced and innovative solution that eliminates the challenges of traditional financial institutions and allows businesses to easily accept crypto payments. Once the payment is successfully received, you can then use the gateway to convert the payment to fiat currencies or other coins of your choosing. This is currently the best solution for businesses and consumers to easily spend and accept crypto. Keep reading for benefits of crypto that are made possible by cryptocurrency payment gateways.
CryptoCurrency Payments Are Simpler and Cheaper
Depending on the institution, transaction fees at a traditional bank will usually cost you around 2-4 percent. This is usually due to the third-party involvement. With no third parties involved in cryptocurrency payments, this cuts the transaction fees down to .5 percent or less. This is especially important if you are making international payments. Fees on international transactions can be exorbitant and the process can be tedious and require mountains of paperwork. Bitcoin transactions can be carried out globally by anyone with a cryptocurrency wallet without insane bank fees. In addition, businesses and individuals who use a payment gateway can save significant amounts of money by not having to convert their crypto before use.
Safe and Irreversible Payments
Most businesses know that transactions made through digital methods such as PayPal, credit cards, or bank transfers can be reversed. Companies stand to lose money from this method as the customer could potentially change the purchase amount after the product transfer. Cryptocurrencies are immune to this as they are not able to be reversed. This is a significant reason businesses should be interested in providing their customers with a payment gateway.
Everyone in the crypto universe knows how secure cryptocurrency is, and this is one of the most significant advantages for any hesitant newcomers. The blockchain technology that Bitcoin runs on ensures this security. Cryptography secures your records on the blockchain, which, in turn, provides data protection. Your digital wallet also has no personal information linked, so identity theft is impossible. The decentralization also adds another layer of protection against any potential hackers.
Compared with credit cards and bank transfers, crypto is the fastest way to make an online payment. Conventional payment methods can take days or even weeks in the case of international payments. With a crypto payment gateway, these transactions can take as little as 20 seconds, regardless of where the payment is being made.
Good for Business
Cryptocurrency isn’t going anywhere, and any business that utilizes a crypto payment gateway will be preferred for heavy crypto users to spend their money. All companies should consider implementing a way to accept crypto, especially those with large amounts of international clients. For the reasons previously mentioned, doing any global transactions through crypto is the fastest and most cost-saving option. Adding crypto as a payment option will also put you ahead of your competitors and make you a trusted retailer amongst crypto users.
There is no denying that cryptocurrencies are here for the long haul. With an estimated base of over 100 million users worldwide, coupled with the quick, secure, and cheap transactions, businesses should be keen to accept crypto payments. So if your business is interested in expanding payment options, make sure to set up a cryptocurrency payment gateway today.