By offering various payment options, you can increase your customer base, as people feel helped and supported, knowing you aren’t chasing costs at the detriment of their experience. Flexibility and convenience aren’t just luxuries – they’re necessities. If shoppers can pay however they want, they’re more likely to do business with you again and even purchase more over time, praising and promoting your brand. Integrating a multitude of payment options helps cater to a broader consumer base, which allows you to take the business to the next level, and this will require you to increase your marketing costs and open new shops. For businesses dealing with cryptocurrency transactions, it’s crucial to stay updated on exchange rates, such as eth to aud, to ensure smooth and accurate financial operations.
Though the industry’s volatility hasn’t led to a crisis of confidence, thankfully, so blockchain payments remain resilient for use case scenarios like:
- paying for online purchases
- me-to-me payments
- distributing profits, dividends, and so on
- peer-to-peer lending
- managing daily cash flows and larger-scale decisions
- paying suppliers, customers, and partners cross-border
- transferring money as a gift or payment
The question now is: Should you allow your customers to pay with cryptocurrency? Why, yes! If you want to enjoy the full benefits, of course.
More And More People Are Familiar with And Use Cryptocurrency
Cryptocurrencies have become a popular tool with investors seeking portfolio diversification, but they’re often used as a means of payment in mundane transactions. According to Statista, cryptocurrency payments are expected to grow at a CAGR of 17% between 2022 and 2029 because they ensure lower transaction fees, which dramatically reduces operational costs. Transactions can be accepted directly – with the seller receiving Ethereum, say, as it is – or you can use a third-party aggregator to convert the tokens into U.S. dollars. The current Ethereum price shows the price the buyer is willing to pay, and the seller is willing to accept; it’s an indicator, not a guarantee.
Unless you’ve lived under a rock all this time, you know something about cryptocurrency. Bitcoin and Ethereum have entered our lexicon, and we can now have jargon-filled conversations without the constant need to explain ourselves -everyone speaks the same language. These days, you can buy a phone or a tablet with Ethereum, purchase virtual land in the NFT marketplace, and create a home cinema with ETH tokens. There are more options than you can think when it comes to using cryptocurrency, many of which directly impact the evolution of the modern financial system.
The rate of cryptocurrency adoption among Millennials and Gen Zers has grown, meaning that individuals hold one or more digital assets, and men are more likely to own cryptocurrency than women. Many cryptocurrency holders have a sheer interest in blockchain technology, sometimes called distributed ledger technology, because it can streamline processes and is highly secure, traceable, and reliable. As interest and adoption grow, more business owners will capitalize on the revolutionary technology. If you plan on using cryptocurrency in your business, clearly understand what you’re doing and list the questions you should consider.
You Can Slash Transaction Fee Costs and Improve Your Bottom Line
Business owners incur costs when processing payments from customers, and the amount charged depends on the risk of the transaction, the type of card, and the pricing model used by the payment processor. Every cryptocurrency has transaction fees built into its basic operating structure. Ethereum, for instance, requires users to pay gas fees to send or swap Ethereum and execute smart contracts, which are automatically included in the price, mainly remaining invisible. As per data from Etherscan, gas fees have dropped below $2 this month after the activation of Ethereum’s much-awaited Dencun upgrade, which introduced blob data storage to reduce the costs of Layer-2s.
Cryptocurrency transaction fees are very low compared to card processing fees, allowing users to create a sustainable and fair financial transaction environment that engenders meaningful change. Motivating customers to pay with cryptocurrency can translate into decreased fees, as this method doesn’t involve intermediaries, so develop clear communication strategies to let people know you’re going to accept cryptocurrency payments, further encouraging adoption. When a company reduces its expenses, the bottom line can increase. Any business should do its best to improve revenue while keeping costs to a minimum, relieving pressure on the cash flow.
Cryptocurrency Integrates Well with Other Payment Methods
Since customers love digital payments, offering the option to pay with cryptocurrency can help boost loyalty, and as we all know, loyal customers are more likely to purchase products, services, and upgrades. If you’re looking for more control over transactions, offer a debit/credit card gateway (Visa or Mastercard) with alternative payment methods, as it lets you reduce the churn and ensure all payments are processed seamlessly. Users can take advantage of their cards to make payments, owing to the possibility of conversion. Some payment processors like PayPal have cryptocurrency integrated into their checkout solutions and even convert cryptocurrency to U.S. dollars to pay the merchant.
The growth of the Internet allows organizations of all sizes to reach out and do business with customers globally, but it’s necessary to change everything they do to assist customers who prefer flexible and secure payment methods. Cryptocurrency supplies a simplified approach to international payments, helping enterprises avoid many of the frustrations that stem from traditional cross-border payment systems – slow processing times, technology-driven dislocation, poor access to emerging markets, and opaque costs. To determine what payment integration works best for you, consider what checkout options you want to include (or are currently using) and configure the payment method for invoices and subscriptions.
To reduce your risk exposure to cryptocurrency volatility, think about accepting stablecoins, which have been embraced by some of the biggest market players of the future, including PayPal and Visa. Stablecoins don’t have a volatility problem because their value is tied to that of another currency, typically the U.S. dollar, maintaining a stable price and enabling fast, low-cost payments. Stablecoins are available at any hour of the day and night on blockchains, and they are a much more attractive way for businesses to accept payment. Soon enough, they could give unbanked populations more access to financial services.
