Crypto is the new money. It is the new generation of digital money that is bringing the world closer and binding it together with its easy transfers and low fee on transfers. This also means that it will soon be accepted as the thirds payment method besides credit card and bank transfer.
The modern world runs on credit cards. Your Airbnb, your hotels, your flights, Amazon orders, Netflix would not be here without a customer having credit cards. Credit cards are the backbone for e-commerce and most modern technology startups. Think about Uber, if you break it down it is a location app combined with a credit card processing gateway, Airbnb: lets you search for houses and pay with your credit card.
In our own business apart from salaries pretty much 90% of our expenses flow through credit cards. Is it time that we had another option along with credit cards for processing payments? How about crypto gateways?
What is a crypto Payments gateway
A crypto gateway allows you to process crypto payments on e-commerce or websites. The instantly converted into fiat (euros/USD/GBP) and deposited into your bank account.
Here we can maybe go a bit more details about how the process works and benefits once again. And at the end, we can talk about how B2B Pay will soon launch a crypto payment gateway.
Key features of excellent crypto gateways
- Merchants themselves don’t have to deal in crypto. The payment gateway instantly converts crypto to fiat and sends payment to the bank account
- The conversion fee between say bitcoin to euro is fixed.
- Invoices are reconciled for accounting and taxation.
- Strong dashboard which allows for payment matching, invoicing.
- Auto reconciliation between payment and invoice.
- Keeping it simple. the user interface is similar to stripe and easy for accountants to understand.
- The merchants themselves don’t have to deal in crypto but get paid in the currency they chose.
Having said so we will look into this in detail and in this article, we will discuss the reasons why crypto will be the next payment option.
Crypto Payments charge little to almost no fee:
A merchant provider may charge you thousands each year even though all credit card processors are subject to the same interchange and assessment rates for their issuing bank. The average is that a merchant will pay $1.50 for every $100 paid via a credit card. Credit card processing may take up to 3–8% of the total amount.
According to a court settlement in 2013, in some parts of the world, the merchants can impose the extra charge they ay for credit cards to the customers.
This problem is solved in the case of crypto payments. The exchange rate may vary depending on the exchange that you are using but it is between 0–2%.
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2. International Payment made easy
Apart from the already high transaction fees, the international fees add up to form a bulk. This fee is around 3% and the credit card fee is divided into two parts. The fees that are usually taken in the name of currency conversion will be eliminated in the crypto payment. Currency conversion charges are the hidden charges in credit card processing which cost merchants and customers 3–5% in fees. The beauty of crypto is there is no conversion involved saving an instant 2–5% As the price for crypto is uniform worldwide and its value does not decrease depending on the country. This will be especially beneficial for countries with weak currency compared to the dollar.
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3. Crypto’s terms do not change rapidly
Because of the decentralized nature of the blockchain system on which the cryptocurrency works making changes to the existing system is not an easy task. This makes it convenient for the customers as many banks change the terms and conditions and change the charges inevitably.
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4. No middlemen involved
The transactions are directly made between peer to peer and there is no third party involved in the middle. This allows the lower transaction costs and the reduction in the fee that is charged by the banks and the credit card merchants.
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5. Lower risk of hacking
As there is no central authority involved therefore your information is not stored anywhere. The transactions are directly from you to the vendor so your information is less exposed to the hackers. Also, no information is shared with any advertising agency which is not often the case in credit cards. Your personal information is safe and away from any advertisers.
6. No chargebacks
A major headache for merchants in chargebacks. Users pay for goods then ask their credit card issuer to claim back the money. With crypto, once the payment is made is final. If there are any issues the customer and merchant need to talk in person to come to a resolution.
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7. Lower risk of fraud.
Credit cards are being always stolen and sadly when hackers use stolen credit cards often it is the small merchant that loses money. With crypto, it’s the customer’s responsibility to keep their private keys safe.
Hope this article helped you.
We’d love to get feedback from you and everyone in the network.
To learn more about B2BPay contact us at B2BPay Trade Payment Services.
