The main advantages of using payment gateways to accept cryptocurrencies on your website are lower charges, instant payments, no fraud, and third-party customer service.
Hedge against inflation
Cryptocurrencies are significant assets to offer protection against inflation. For instance, as of August 2023, Bitcoin price was at $26,160 compared to $21,175 in 2022; this is a colossal 23.5% growth in just one year. Therefore, although cryptocurrency prices fluctuate, the blockchain controls the demand and supply of the assets, and this only serves to get the currencies on an upward trajectory, thus giving protection over a long period.
Reduced transaction costs
As a store owner, you are expected to pay transaction fees for payment processors. Sometimes these charges are expensive, which increases the cost of doing business. For instance, PayPal charges a minimum of 4% per transaction or even more. However, most Bitcoin processing gateways, such as NOWPayments for WooCommerce, charge a paltry 0.5% per transaction. Therefore, for a cryptocurrency payment worth $1000, you only pay $5, which helps lower the total operations costs.
Instant payments from anywhere around the world
Cryptocurrency transactions are some of the fastest in the world; this is so because transactions are confirmed on the blockchain and do not need to get to a bank which will require verification. Some crypto processing gateways like Coinbase Commerce for WooCommerce verify the payment immediately after it happens. Thus, you will receive your payment instantly.
Bitcoin Payment Gateways offer better security against fraud.
As of 2023, credit card fraud is on the rise. The 2022 Credit Card Annual Fraud Report by Security Org shows that about 65% of American cardholders have been victims of credit card fraud. It is a considerable risk. However, cryptocurrency transactions can only get through if verified on the blockchain and the information posted in the crypto general ledger. Therefore, as a business owner, you can be sure to receive your payment.
Eliminates irregular chargebacks
In online business, I am sure you have experienced a situation where you received an email from PayPal or your other card processing gateway company informing you of a refund request or the money had been sent back to the customer. The worst thing is that some customers don’t reach back to you to ask for a refund; they ask the gateway directly, which can sometimes cause your business to be flagged.
However, when a customer pays with crypto, the transaction is irreversible. The transaction once recorded on the general ledger, that’s it. It is only the payment gateway that can handle the refunds. Despite this, you must ensure that your store has a reasonable refund policy that is easy to follow and understand. It will ensure a smooth coexistence with the customers.
Greater currency option
Crypto payment gateways offer a myriad of cryptocurrency options. For instance, NOWPayment for WooCommerce allows you to accept over 200 cryptocurrencies, stablecoins, and tokens. Accepting many currencies creates a certain level of flexibility for customers.
According to Forbes, Bitcoin is the most trusted currency; about 65% of Americans know it as a cryptocurrency. However, other forms of cryptocurrencies are growing, especially among millennials. In August 2023, PayPal launched a crypto coin, PayPal USD (PYUSD), the first major financial institution to openly launch its currency, which signifies future crypto uptake growth. Therefore, it is essential for you as an entrepreneur to accept crypto sooner.
You have a third party to help you in case of any issues.
Sometimes, payment processes can be challenging. As I mentioned earlier, the irregular chargebacks. Therefore, you will need someone to help you with it. In addition, you do not need to know cryptocurrencies to accept them in your store. The payment gateways are as simple as opening a bank account and receiving payments from anywhere in the world.
Expand your market reach.
The number of people using cryptocurrencies in the world is on the rise. For instance, according to Forbes, 420 million people in the world possess some form of crypto. While most people hold cryptocurrencies as an investment, Forbes further indicates that about 80% use them to pay for goods and services online. However, about 65% of cryptocurrency owners trust Bitcoin as the safest crypto to use for payments. It means that you can leverage a large percentage of untapped crypto owners to buy from your store.
While cryptocurrency is still a new concept, it has been dramatically acceptable and quickly appealing as a mode of investment and payment. Therefore, as an entrepreneur, you need to be ahead of this trend and get where these potential customers are to conveniently make it easy for them to purchase your products or services. It is possible to make it work with an excellent crypto payment gateway.