The payment method is an important aspect of any business. The sudden rise in the trend of purchasing through eCommerce platforms has helped customers build trust in cashless payments. The concept of cashless payments has been appreciated widely post-pandemic. Customers have managed to get their favourite products to their doorsteps. Digital payments are projected to increase by a CAGR of 15% by 2026.
What else has evolved? The trend of cryptocurrencies. Especially, some investors trusted the abilities of cryptocurrencies and the trend of cryptocurrency investment has attracted the trend of cryptocurrency payments. Instead of settling down with the limitations of centralized currencies, some eCommerce platforms like WooCommerce, Magento and Prestashop have hailed the worldwide accessibility of decentralized currency payments.
Why Cryptocurrency Payments?
There are several advantages of accepting cryptocurrency payments over fiat payments:
- Faster transaction speed
- No fraudulent chargebacks
- Low transaction fees
- Worldwide payments
- Easily traceable transaction history
With cryptocurrencies, merchants can witness faster transactions and fewer fees. For example, the Tron blockchain conducts approx 2000 transactions per second with minimal transaction fees. Refunds in cryptocurrency transactions cannot be processed without the receiver’s consent. Cryptocurrency is a decentralized form of currency that doesn’t need to be processed in a registered currency for a particular country. Crypto transactions are recorded on a public list known as Blockchain. Therefore, crypto transactions contain a traceable transaction history.
What Revolution has been Noticed So Far?
Overcoming the cons of cash payments, the world has shifted quickly to digital payments with a slight leaning towards cryptocurrency payments. The benefits of cryptocurrency payments have drawn the attention of several reputed eCommerce platforms too.
What Revolution in Digital Payments Can be Expected?
Cryptocurrency itself is a result of a revolution. The change in everyone’s perception of cryptocurrencies is quite noticeable. Using them for paying for daily products was something unexpected. According to Deloitte, up to 75% of retailers may plan to accept cryptocurrency payments within two years. By 2030, the method of cryptocurrency payments is projected to rise by a CAGR of 16.6%.
What Can be Done in 2023?
Jumping into cryptocurrency transactions can be a good option for merchants in 2023. Seeing growth projections of some top cryptocurrencies, merchants can have high ROIs on long-term investments. For example, you can check the potential ROIs of some popular cryptocurrencies by 2030 (Over December 2022):
- Bitcoin: 2239.27%
- Litecoin: 2628.17%
- Bitcoin Cash: 2270.39%
- Ethereum: 2485.47%
- Dogecoin: 2526.50%
- DASH: 2517.52%
- BNB: 2215.51%
- Tron: 2281.81%
- Monero: 1991.30%
(Growth projection data by Changelly)
As we can see, every cryptocurrency in this list has a potential ROI of over 2000% except Monero (just over 1990%, which isn’t low either). So, high returns can be expected over the long term.
How to Process Crypto Transactions?
You need a reliable crypto payment processor for processing crypto transactions. Apart from adding relevant crypto wallets, crypto payment processors work as same as fiat payment gateways. For utilizing third-party services for accepting crypto payments, there are some mandatory steps to be followed:
Signing up as a merchant takes some formalities to begin. Having a compatible cryptocurrency wallet is preferred. Owning a cryptocurrency wallet may vary based on a gateway. Either you can add a compatible wallet or you can get a compatible wallet app.
The further process contains the communication between a merchant and a customer. Highlighting the revolutionary payment method is necessary to grab more audiences. Whether you can share your crypto wallet address with your customers or you can consume services like plugins or APIs to accept cryptocurrency payments.
Crypto payment plugins are helpful when you’re selling your products on some popular eCommerce platforms (if supported). For receiving crypto payments on your website, you can go through the successful integration of crypto payment APIs.
Signs of an Ideal Crypto Payment Gateway:
A payment gateway’s security features must be trustworthy enough to prevent hackers from accessing your account. In case of glitches or troubles, you must be sure that you’re able to claim support in order to acquire the solution.
Another important aspect is the processing fee charged by the gateway. Fewer fees tend to more net profit. For example, if you’re accepting cryptocurrency payments via Coinremitter, you’ll be spending just 0.23% of processing fees of the withdrawal amount (quite less than average).
With the rapidly upgrading world, the concept of cryptocurrency payments seems to be revolutionary. Higher ROIs on cryptocurrencies may let you yield profits. Though these advantages aren’t limited to investments only. One can find several benefits of accepting crypto payments like capturing a larger customer base. Therefore, shifting to cryptocurrency payments or adopting the same method parallely may let you be a part of the revolution.
Interesting Related Article: “Is Cryptocurrency Truly Anonymous?“