Is it Safe For Merchants to Accept Cryptocurrency Payments?
The use of Cryptocurrency is definitely becoming more important. Nowadays, digital currencies are widely accepted online, and even offline as businesses are starting to agree that digital currency will become an essential form of payment in the future. So if you’re an online merchant, or you’re an offline business and you’re wondering whether it’s safe to accept Cryptocurrency, this piece will give you useful insights.
Cryptocurrency Benefits for Merchants
Cryptocurrency has plenty of benefits for merchants. For one, cross-border payments are much easier to accept because there’s no need to convert Crypto into local currency. This in itself reduces the transaction fees associated with cross-border payments and if there are any transaction fees associated with Crypto, they are really low in comparison to card fees. There’s another advantage for merchants looking to expand internationally. Adding Cryptocurrency as a method of payment opens up whole new markets, especially for those who’ve never sold outside of the UK before. So, for online retailers who’ve always wanted to broaden their reach, but who don’t want to pay large international transaction fees, adding Crypto payments is the obvious answer.
Adding digital payments as another method of payment gives consumers more choice too. Accepting Cryptocurrency allows those without bank accounts to shop online as there’s no need to open up an account to manage digital currency, the user just needs to set-up a digital wallet. So offering Crypto at checkout gives consumers lots of options.
What About Security of Payments?
As for the security of Crypto, it can be seen as a safer option than debit or credit cards. For one, Cryptocurrency isn’t controlled by a government or a bank. It’s held in a blockchain and is completely decentralised. Which means every transaction is encrypted and held securely in the blockchain. The technology involved in blockchain is impossible to modify or change, so there’s clear transaction history and it’s pretty much impossible for any hacker to break into a blockchain. Users of Cryptocurrency have digital wallets which are accessible by a completely private key, unique to the user. Unless a cyber criminal got hold of the private key there’s no way of obtaining Cryptocurrency through fraudulent activity. So transactions can be very safe.
Fast Settlement of Funds
Every single time a transaction occurs, it’s verified and is displayed on a public ledger, this stops the digital currency from being spent again by the same person. Additionally, every digital coin is unique. Furthermore, when a consumer pays using Cryptocurrency, the transaction should occur instantly – for the merchant this is extremely beneficial because it means fast settlement of funds, rather than waiting up to 2 to 3 days for receipt of payments from credit and debit cards. This helps cashflow as digital payments provide more liquidity because of the speed of transactions. As mentioned, there are fees attached to Crypto payments, but they are lower than those associated with credit cards or and other payment methods.
Consumers Enjoy Better Payment Security
For consumers, digital currency can provide a very safe environment to pay. If you add it to your checkout page and a consumer chooses to use Crypto, there’s no keying in sensitive payment information or personal information. It’s all done through a private key, so the only information given to the merchant is an email address and a shipping address. Payment details are completely secure as they aren’t viewed at all. This reduces the problem of cyber criminals stealing payment information and using it illegally.
No More Chargebacks!
Through Cryptocurrency payments there’s no way to reverse the payment, so e-commerce businesses don’t have to deal with unwanted chargebacks. These are always a headache, and many customers use the chargeback process incorrectly or even fraudulently. This can seriously harm an online retailer’s reputation with banks and credit card companies, so Cryptocurrency payments could be seen as even more attractive as an option.
In Summary
The digital world is ever-changing and moves at such a pace, it can often feel hard to keep up! Cryptocurrency has been in circulation since 2009 and is growing in popularity. If you don’t offer it as a payment option now, the chances are you will need to add it in future especially as more people are seeking out e-commerce businesses that accept it. Certainly, as 30% of shoppers plan to use it to pay for goods and services in the future, it’s advisable to consider adding it now. For one, you may lose out to competitors who already use it and secondly if you want to keep your business relevant and cutting-edge it’s worth getting on-board earlier rather than later.