Online commerce has evolved significantly in recent years. Today, you can order pretty much everything online — from mouth-watering food to a nose-picking pencil sharpener and everything in between. Consumers prefer online shopping as it’s easy, fast, convenient,
and oftentimes cheaper than brick-and-mortar stores.
“Total transaction value in the Digital Payments market is projected to reach US$9.46tn in 2023.” Statista
While online commerce has changed a lot since its inception, traditional payment processors haven’t evolved much. Even today, most payment gateways offer limited payment options and lack essential features.
With virtual currencies gaining popularity, it’s about time for payment processors to start accepting crypto payments.
Approximately 77% of merchants saw an increase in international payments after enabling crypto transactions. If you’re seeking to attract more merchants, you should consider adding crypto payment services to your gateway.
We have compiled a list of the top 5 reasons you should start offering crypto payment services to your customers.
5 Reasons Why Payment Processors Should Embrace Cryptocurrency
- Cater diverse demographic
A lot of industries are forbidden from using traditional payment methods like credit/debit cards or bank transfers in some regions. For instance, in the US, even legal cannabis businesses don’t have access to baking services due to inconsistencies
in state and federal laws. Likewise, gambling is restricted in a lot of countries around the world.
By enabling crypto payments, you can allow merchants from diverse industries to transact globally, irrespective of restrictions imposed by their local governments or financial institutions. This way, you can not only increase your user base but also maximize
revenues in the long run.
- Minimize payment processing fees
The cost of processing credit/debit card transactions can be significantly higher than Bitcoins. The average credit card processing fees range between 1.5% and 3.5%. However, processing crypto payments is much cheaper and will help you offer the lowest transaction
fees to your merchants. This will not only attract more merchants but also help you bring down your infrastructure expenses.
- Enable borderless transactions
Unlike banks and credit card companies, crypto has no boundaries or intermediaries. You can send crypto to any part of the world in real-time. No need to rely on banks and credit card companies for processing transactions — which may take days or even weeks
to go through. Offering faster transactions will not only improve your customer experience but also maximize users.
- Avoid costly currency conversions
International transactions are not convenient through traditional payment methods as they are time-consuming and will cost your merchants a significant chunk of their payment. On the contrary, payments made through crypto do not incur any conversion fees
whatsoever. All you pay is a network fee which is a nominal amount of your transaction.
- Cryptocurrency has a 99% acceptance rate
Payment declines are one of the major reasons merchants abandon a payment gateway. This usually happens when a transaction is rejected by the issuing bank, the payment gateway or the processor. On average, 6% of global and 3.4% of domestic transactions are
rejected — according to Statista. Payment failures may lead to cart abandonment and lost sales, which will ultimately drift away merchants from you.
With crypto, the payment decline rate is almost zero. All crypto transactions are permanent and irreversible, making them secure and reliable. Most leading crypto payment processors offer a 99.99% acceptance rate whilst maintaining the lowest
transaction fees. If you are seeking to deliver a better customer experience, consider enabling crypto payments for your users.
Can Bitcoin be an alternative to our traditional financial system?
The dictatorship of central banks and financial institutions has adversely affected our economy. The 2008 bank crisis and the recent bank collapses have affected millions of businesses and individuals worldwide.
Cryptocurrencies can solve this as they are decentralized and cannot be controlled by a central entity. No one can print crypto as much as they want. Most cryptocurrencies are programmed such that only a limited number of coins exist and are generated through
software at regular intervals.
Final words
If you’re a payment processor, now is the right time to embrace cryptocurrency. They will not only help you attract more merchants but also minimize the infrastructure cost and enhance your customer experience. With crypto, you can offer lower transaction
fees, faster settlement cycles, and bank-grade security.
Get in touch with Speed experts to add crypto to your payment gateway. Having done this for years now, they know what it takes to build a robust crypto-payment solution that can be integrated with your gateway. Share with us your requirements
and let our experts help.
