Cryptocurrencies were birthed in 2009 and have evolved considerably over the years, with the future looking bright because of the benefits crypto payments offer merchants and customers.
Merchants need to adapt to this changing environment as quickly as possible since it’s clear that crypto payments are here to stay. It’s simply a matter of time that accepting crypto will be as important as card payments.
In this article, we will go over some of the most prevalent benefits that different industries are currently reaping by implement crypto payment merchants into their payment processing infrastructure, along with some risks in general that the currency presents.
While there are some very specific differences between the two payment models as well if we summarize the whole topic. Here are the key variances that you need to know about;
Following are some risks to keep in mind in regards to accepting crypto payments;
Here are the risks involved with credit card payments;
Now that we know what the benefits and risks involved with accepting different forms of payments are, let us consider the benefits of accepting crypto payments for different industries.
Despite what people may think, crypto payments aren’t necessarily an enemy to banks and financial companies. Because the financial industry as a whole is always facing cyber threats, blockchain infrastructure is helping the industry secure its data; not to mention reducing administrative and operational costs.
Currently, more than 90% of US financial institutions are exploring blockchain capabilities for their activities. Here are some prevalent benefits that crypto payment merchants can offer banks:
One of the biggest benefits that crypto payments enjoy is that of no exchange fees. As a company that accepts crypto – whether you’re a travel agency, airline, transportation company, logistics provider, or more – you will be engraving yourself into the roots of tourism and accepting an international clientele.
Central banks of several countries (including the US) are looking to use blockchain technology for international payments because of the wide acceptability and improved timeliness and security of crypto payment merchants.
For B2B companies that either send employees abroad or render services to people outside the US, the need to manage multiple currency accounts also gets eliminated by using crypto merchants for travel. Businesses are always looking for transaction confidentiality; which further improves with cryptocurrency.
The advertising and media industry has found several uses of blockchain over the last few years; even before its boom in 2020. Some of the top benefits that it has reaped include
Digital entertainment doesn’t just include media, though, but also extends to the online gaming community where the new content can be unlocked using the in-game marketplace. There are online stores as well that allow crypto payments.
The biggest player in the gaming world, Microsoft, accepts bitcoin, for example. Digital IDs are assigned to purchases that improve player privacy, all while increasing profitability (by reducing transaction fees) for the giant.
Crypto has revolutionized the marijuana industry as a payment method operations for dispensaries across the US where card processing banks will not allow processing. Since cannabis is only legal in the state law and still illegal on a federal basis, banks have a long list of legal issues that marijuana dispensaries need to deal with.
Accepting crypto payments is much easier than trying to get a card merchant account for cannabis. And since every crypto payment is tracked, dispensaries can comply with regulations.
Crypto merchant accounts are increasing being used at by CBD merchants as well. CBD merchants can accept crypto payments at point of sale. And can also accept crypto payments for online.
Accepting crypto payments is simply smart business. The more ways customers can buy from you, the more sales you make.
Numerous other industries are currently benefiting from crypto payments as well, such as;
Major corporations are moving towards accepting different cryptocurrencies; particularly for gift card purchases and sales of high ticket items. As this trend turns into a reality, companies need to step up and implement crypto payment merchants into their payment processing systems to stay competitive in the marketplace.
If you would like to learn more about the topic or are ready to get your own crypto merchant, give us a call and we’ll schedule a demo for you!