Despite active growth rates in the cryptocurrency market in the last few years, many entrepreneurs still do not see the necessity in organizing the acceptance of payments in digital assets. Sadly, that lack of interest in this new financial instrument deprives such companies of several benefits.
Among the new opportunities that crypto payment integration brings to businesses, there are five key benefits. Let’s explore these benefits in detail.
1 – Customer base growth
In order to judge the pace at which the crypto market is growing, it is necessary to check the growth graph for active addresses at the biggest cryptocurrency network by capitalization, Bitcoin (BTC).
A few years ago, it was only possible to use this coin to buy goods from darknet stores. Today, this financial instrument is accepted by many major companies. For example, one can use bitcoins to buy Microsoft products, or even book a flight with AirBaltic. A lot of merchants also accept other digital coins as a means of payment.
The map of shops that accept cryptocurrencies as a means of payment. Source: coinmap.org
The advantages of this financial instrument over traditional money continue to attract new users to the digital assets market. This is why the integration of crypto payment gateways in businesses can be seen as a step towards client base growth.
What attracts users to cryptocurrencies?
For many, choosing cryptocurrencies is a matter of principle. Amid the coronavirus crisis in 2020, governments in several countries have chosen a quantitative easing policy that involves printing and injecting new bills of national currency into the economy. This monetary policy can negatively affect the traditional money value, due to the artificial increase in cash.
A graph showing the growth of US dollar bills in circulation. During the coronavirus crisis, the US has printed around 35% of all dollars that are currently in circulation. Source: FRED
Contrary to the supply of national currencies, the supply of bitcoins is limited. Within cryptocurrency code,, there are embedded instruments that keep the inflation of the asset in check. That is why for many, bitcoin and other cryptocurrencies with similar operating principles are more attractive than traditional money, especially in periods of financial crisis.
Cryptocurrencies also have other advantages, such as allowing confidential transactions, which is one of the reasons for which its number of users is constantly growing.
2 – Income growth
The second benefit is a direct consequence of client base growth. If the organization starts to accept cryptocurrencies, there could naturally be a growth in the number of orders. In addition to this, digital assets allow businesses to cut operational costs.
The commissions for transfers in the networks of most coins is significantly lower than the transaction fees of traditional money. Thus, the integration of a digital assets payment gateway helps businesses to save money.
Here is an example of a transaction fee for a major transfer in the Bitcoin network:
The fee was only .00005500 bitcoin
That’s like $0.49 bruh
— ????Adam O???? (@denverbitcoin) January 15, 2020
3 – Better customer service
It takes much less time to execute a transaction in cryptocurrencies than in traditional money. Also, all information on transactions is automatically saved on the blockchain. This brings the following advantages:
- A company can use data from the blockchain for accounting. The technology guarantees information integrity due to the decentralized approach to data storage.
- Faster transaction execution allows a company to handle more orders.
- Having organized the acceptance of cryptocurrencies, a company can save on operational expenses and invest in customer service improvements instead.
The sum of these advantages when accepting cryptocurrencies can lead to better customer service.
4 – Readiness for changes in the financial market
The crypto market is not limited to bitcoin, and similar coins, alone. There are alternative financial instruments available, such as stablecoins or central bank digital currencies (CBDC). The latter deserves particular attention.
The current case is that many countries, including the US, China, and Russia are developing their own digital currencies. Some jurisdictions already have CBDC. These currencies are also built on blockchain technology, similar to bitcoin.
CBDC map. Source: CoinMarketCap
Due to the similarity of the technical details for integrating most digital assets, businesses can easily adapt to working with new instruments. Therefore, readily-integrated payment processing services, that accept cryptocurrencies like bitcoin, are expanding business capacities in order to quickly adapt new transfer systems in different instruments like CBDC.
5 – Lower risks
Due to the automation of payment processing, cryptocurrencies have made financial organization services unnecessary. Businesses can now manage their assets by themselves, and therefore eliminate the risk of a bank account being blocked. They can secure themselves against unexpected transaction backouts and other financial transfers issues that could negatively affect the bottom line.
Choosing a processing service for accepting payments in cryptocurrencies
In the market, there are several processing services that a company can use to integrate digital assets payment gateways to its platform. Unfortunately, internet reviews suggest that not all players are worth mentioning.
For example, the BitPay processing service, which has been operating since 2011, does not provide clients with support services for integrating a solution. BitPay’s rival, the CoinGate platform, is often accused of theft. Among other alternatives, there are the Wirex and Simplex processing services. Frustratingly, both platforms have similar reputation problems as CoinGate. Wirex is accused of stealing customers’ money, Simplex – of theft.
As of March 2021, one of the most worthy alternatives among companies that organize the acceptance of crypto payments is CryptoProcessing by CoinsPaid. The platform has passed the Kaspersky Lab security check, which is a more advanced version of the Service Organization Control 2 (SOC2) audit procedure.
Here are some other features that differentiate CryptoProcessing by CoinsPaid from other processing services in the market:
- Apart from the processing service, CoinsPaid’s ecosystem includes a digital assets exchange, a hot wallet system, and an OTC-platform. This product suite fully satisfies all of the client’s needs in one place. As a result, CoinsPaid’s clients save time and money by not paying for third-party platforms and additional instruments.
- CryptoProcessing by CoinsPaid is one of the few processing services that offer instruments for different types of payments. For example, shops might use a technical solution of the platform to accept payments by invoice, which involves the transfer of a fixed sum. Additionally, internet and telecom providers might choose asynchronous deposits. This does not limit the sum of the transfer, and can therefore be used for monthly bills like telecom charges.
- CryptoProcessing by CoinsPaid provides clients with a personal manager. An expert will support an organization in all stages of the crypto-fiat payment gateway integration to a client’s platform. As a result, integration is done quickly.
CryptoProcessing by CoinsPaid further differentiates itself with its favourable terms, in comparison to other crypto processing services, as well as its effective client support.
With CryptoProcessing by CoinsPaid, businesses can establish crypto as a valid form of payment, and benefit from operating with a new financial instrument.
The decision to organize the acceptance of payment in cryptocurrencies benefits businesses in multiple ways. Aside from these current benefits, the readiness to accept payment in digital assets can be seen as an important step towards preparing for a future financial market, an integral part of which involves central bank digital currencies.
As of the beginning of March 2021, the market is full of effective instruments that help companies accept payments in cryptocurrencies. One of the most attractive options is the CryptoProcessing by CoinsPaid processing service, which differentiates itself with clear competitive advantages.