6 Reasons to Use Cryptocurrency Payments in 2020
By on The Capital
Despite being in the market for over a decade, many individuals have only now begun to realize cryptocurrency’s true potential and the benefits that it brings to their business. Cryptocurrency is increasingly being used for payments and this adoption will only be more widespread in the coming year.
Based on its increasing popularity, you need to integrate it within your business and if you are still unconvinced, here are six reasons to help you jump right in.
1. E-commerce
Various e-commerce accepts cryptocurrency as a mode of payment. Shopify, Etsy, WooCommerce, Easy Digital Downloads, and various other platforms use plugins or other forms of tools to enable crypto exchange.
A new addition to this list is Shapeshift which enables its customers to browse through various modes of cryptocurrency payments. The point is that a cryptocurrency is an easy way of making online transactions and lowers the usual transaction fees for the merchants by 60–70%.
2. Full control of your funds
Legacy or banking systems are controlled by third parties. Even though it is your money, your account, and your funds, you never really own your money. The banks exert control over it by restricting the ways how you can and cannot use your money. Freezing your account or closing it without prior notice is another issue.
With crypto, you own your funds. Say you have your funds in a cold wallet or on a decentralised exchange, no one can freeze your account or stop you from spending money the way you want to. You are in control.
3. Ease of use in a globalised world
Globalisation has created the need for individuals to send and receive money across borders. Although joints like Western Union or bank transfer are an easy option, they often charge high fees that leave little money in the pockets of the recipients. When it involves exotic currencies, the fees blow up even further which worsens the problem.
On the contrary, cryptocurrency allows for cost-effective and instant transactions around the world. On top of this, the crypto funds can be accessed anywhere without a bank account, ID, wire transfers or credit cards. The lack of international fees along with the freedom to send funds to anyone at any time and anyplace makes it an attractive system for everyone around the world.
4. Convenient charging system
Bank transfer is a slow medium of transferring funds. And it can take days for payments to be settled and processed by banks — especially when it comes to credit card payments. Crypto payments are direct and instant. Just like when you pay with cash, the recipient immediately receives the money and there is no need for a 3rd party to settle the payments over the course of a few days.
5. No structural or ongoing fees
Banks offer various perks and the ease of use that comes with a banking system, and for that, they charge fees for various reasons. Think of merchant fees, debit card fees, ATM charges, maintenance fees, inactivity fees, etc. These are usually minimal amounts but at the end of the year they do add up to a serious amount.
When it comes to digital currencies, the lack of middlemen or third parties reduces the fees and in various instances, it does not charge its consumers anything at all. You can have a very low amount of crypto in your wallet, not use it for months, and no one will charge you for that.
6. Growing adoption
Crypto payments and digital wallets are on the rise and show no sign of slowing down. Despite its humble beginnings, it has now become a force to be reckoned with. Its growing control is evident from the fact that Telegram and Facebook are in the process of launching their own digital currencies. On top of this, China is also on the verge of releasing the digital Yuan issued by one of its national banks.
Wrapping Up
Since the advent of Bitcoin, cryptocurrencies are growing in popularity and increasing its user base. It is not only transforming the financial sector but also providing vendors and consumers with a safe and secure method of making transactions. With more apps coming out this year — both on the DeFi side and mainstream mobile apps — and more merchants accepting crypto for payments, 2020 is set to an amazing year for crypto usage around the world.
