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For a long time, cash, credit and debit cards, and wire transfers have been payment options. But over the last ten years, things have started to change. Cryptocurrencies, once a niche phenomenon, have become more common. Today, there are approx 600 million cryptocurrency holders around the world, and that number is likely to grow.
While some crypto holders treat their digital assets as investments, many – about 200 million worldwide – are willing to use cryptocurrencies for everyday purchases. They are drawn to cheaper transaction fees, faster processing times, and better access.
Businesses, whether they are ready or not, are facing this growing demand. Some have already accepted crypto payments, while others are exploring their options. Many are hesitant, however: even those who recognize the potential benefits of crypto payments often fail to take the necessary steps to accept them.
We have partnered with CryptoProcessinga crypto payment gateway designed for businesses, to shed light on the benefits of crypto payments and explain how a trusted and compliant payment processor can address common buyer concerns.
Why are businesses choosing to adopt crypto
There are more benefits to accepting cryptocurrency payments than simply meeting customer demand for different payment options. One such benefit is finance. Cryptocurrency fees vary by transaction type and asset, but typically range from 0.01% to 1.5%. In contrast, traditional payment options, such as credit cards and wire transfers, can have fees of up to 5%.
Cryptocurrency transactions also settle quickly. Even at the slowest level, they are at least 24 times faster rather than traditional methods. This is not just convenient for customers, it also means faster and more predictable cash flow for businesses.
Security is another strong point for crypto. Cryptocurrency transactions rely on blockchain, which is a distributed ledger. This means that all transactions are recorded, which reduces the risk of alteration or tampering. Blockchain transactions are also immutable, which eliminates chargebacks.
Apart from financial and security benefits, there is also a reputational aspect. By accepting cryptocurrencies businesses are responding to the needs of their customers, including their payment options. In a world where people travel far and wide and many have adopted a digital nomad lifestyle, offering a payment option that crosses borders and allows savings on taxes gives guaranteed competitive advantage.
However, these benefits are often outweighed by concerns. The technology may seem complicated, and stories of cryptocurrency heists have fueled perceptions of risk. It is also unclear how much investment is required and when businesses can expect returns. However, partnering with a crypto payment processor can alleviate many of these concerns.
How a crypto processor can help overcome buyer concerns
If we had to identify the main concerns that bother buyers considering crypto payments, security would be at the top. Crypto payment gateways like CryptoProcessing ensure that you accept crypto payments legally and securely.
CryptoProcessing is registered and licensed in Estonia and recently received registration as a Money Service Business (MSB) to operate in the US. They regularly conduct independent security audits with companies such as Hacken and 10Guard, which have not revealed any security vulnerabilities. CryptoProcessing also uses a risk scoring system that analyzes every transaction and ensures that its customers do not come into contact with dubious funds.
Another concern is uncertainty about financial consequences and a lack of understanding of how crypto adoption will affect a business's bottom line. We have already pointed out that crypto payments usually come with lower fees, which is already a big advantage. But a partnership with CryptoProcessing can unlock even greater financial savings. The company does not charge onboarding or monthly fees, and its transparent fee structure offers rates as low as 1.5%.
Flexibility is another obstacle. Merchants are reluctant to accept payments in highly volatile assets, and cryptocurrencies can be that. However, this challenge is easy to overcome and should not be a reason to miss out on the many benefits of crypto payments.
Services such as CryptoProcessing, for example, allow buyers to accept stablecoins – cryptocurrencies with a fixed value tied to a real-world asset such as EUR or USD. This helps to avoid losses due to price fluctuations. The service also locks exchange rates for 15 minutes after a trade is initiated, to further reduce the impact of crypto volatility.
Starting with crypto payments
The first step is to be in a country where crypto is legal. Fortunately, it is most countries. The second step is to send a request to the crypto payment gateway website. CryptoProcessing, for example, contacts their prospects within 5 minutes of sending a request. Next, with most crypto payment gateways, you will get a demo of the solution and have the opportunity to ask questions. If you choose to cooperate with CryptoProcessing, you will be assigned a personal manager from the very beginning.
Most legitimate crypto processors will then require you to pass a KYB check. This step can take some time, but it is necessary for legal compliance, and we advise you to only work with compliant providers. Finally, once you submit the necessary documents, your personal manager and a dedicated technical team will take you through the implementation process and set up the approved crypto payment tools.
About CryptoProcessing
CryptoProcessing is a registered and licensed crypto payment processor in Estonia, with over 10 years of experience in the crypto industry. With 800+ merchant accounts serviced, they process around €700 million in crypto monthly and support over 40 popular cryptocurrencies and 20+ fiat currencies. Their platform, designed specifically for buyers, offers many benefits, including:
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No setup or monthly fees
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No chargebacks or rolling reserves
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Flexible payment options, including invoices, payment links, channels, and e-commerce plugins
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Crypto-to-fiat conversions near instant
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Flexible withdrawals via SWIFT or SEPA
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Big payouts
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