Can accepting cryptocurrency as a form of payment be profitable or risky for businesses?

Paying with cryptocurrency for any service or product is no longer new, over time, especially this year, cryptocurrency has made ordinary people and businesses this way.

However, cryptocurrency markets are notoriously unpredictable, and the price you pay now may not be the amount you spend tomorrow.

Additionally, many companies experimenting with cryptocurrency payments only take Bitcoin, which is one of the more volatile cryptocurrencies. Yet El Salvador became the first country in September 2021 to adopt Bitcoin as legal tender.

The announcement marks another milestone in the widespread adoption of cryptocurrency. Small business owners should be aware of the growing popularity of cryptocurrencies.

According to some research, it has been said that around 20% of Americans use cryptocurrency as a method of payment for their purchases and business conduct.

So now that cryptocurrency has gained a lot of attention, the question arises, is it possible to conduct commercial transactions in cryptocurrency, and the more important question is is it going to be profitable for them. companies, or is it just short-term hype that’s way too risky than you might think.

Let’s take a look at the potential of using cryptocurrency as a payment method.

Why accept cryptocurrency as a means of payment.

Security is one of the important factors to consider when someone is considering accepting or paying with cryptocurrency. This is because cryptocurrencies do not require third party verification.

When a consumer uses cryptocurrencies to pay, their information is not kept in a centralized location, where most data breaches occur.

Second, the blockchain ledger is used to authenticate and record every transaction, making identity theft extremely difficult, if not impossible.

Lack of chargebacks is the second factor that is the best approach to doing business, but it can also hurt their business as there is a 100% chance that consumers will ask for a refund. But still, we cannot overlook the fact that this can benefit any fundraising activity.

A low fee structure is something everyone and businesses want in order to lower transaction costs and increase the value of profits. Also, it helps to gather a global audience as it completely removes all international transaction fees.

The last but still the most important part of using cryptocurrency as a means of payment, even as an investment asset, is that there is still no real regulation related to its use which prevents individuals and businesses from being taxed, unlike any fiat currency.

What are the risks associated with cryptocurrency?

When it comes to cryptocurrency, the first risk that comes to mind is price volatility, which can ruin the business overnight and can also hurt future prospects of trading in cryptocurrency. .

The second risk associated with using cryptocurrency is the government and its regulation. While there are still no regulations in place for cryptocurrency, it worries businesses and individuals who are worried about what will happen if they start accepting cryptocurrency as a form of payment. and the government suddenly announces something against its use. If this happens, it will negatively impact the price of the cryptocurrency.

The third risk, choosing an appropriate cryptocurrency related to the business. For example, if you are a product-driven business willing to accept payment by cryptocurrency, the first and most essential thing is to get the right price for the products and protect your money in any form. volatility. And it can become a problem if you choose the wrong cryptocurrency.

Now, we’ve seen all the best and worst aspects of cryptocurrency as a payment, and knowing these factors, many companies still accept cryptocurrency payments.

So, if you are planning to take cryptocurrency as a payment method on your website, there are several crypto payment gateways available in the market that can be used by both individuals and businesses.

Best cryptocurrency payment gateway.

As with any traditional payment gateway, the cryptocurrency payment gateway works the same; the only difference is the fee structure.

The main cryptocurrency payment gateways that can be used to process payments on your website or app are:

Coinbase

Coinbase, one of the most famous crypto payment processors, is a preferred medium for Bitcoin business transactions. Coinbase software for retailers can be downloaded and used to receive quick bitcoin payments. Coinbase is one of the payment gateways that provide excellent protection against price fluctuations through its fast conversion of crypto-fiat payments. And its fees are around 0.5%.

CoinPayment

The CoinPayments gateway supports a wide range of coins. The number of supported cryptocurrencies exceeds 1200. Not only does the gateway accept payments in different currencies, it also offers crypto-fiat conversion services for each of them. CoinPayments integrates with almost all popular ecommerce platforms, and its fee structure is also around 0.5% on the transaction.

Pay by bit

Bitpay, one of the world’s most sustainable crypto payment gateways, entered the market in 2011. You can start making payments and transactions online using the Bitpay app, with fees starting at 1%. . Bitpay also supports Bitpay debit cards for easy crypto to fiat transfers. The Bitpay Gateway includes open source e-commerce plugins among its many features.

Final remark

Whatever your conclusion on cryptocurrency, and considering all aspects, both the benefits and the risks associated with it, the cryptocurrency industry will only increase over time, with widespread adoption as a form of payment around the world bringing benefits to many businesses. However, choosing the best cryptocurrency for your business and payment gateway will always be more crucial than any other consideration.


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