Payment companies have gone through a revolution in the past few years. From blockchain and fintech to AI and cryptocurrencies, the world of international trade is moving faster than ever.
The payment industry of the future will be determined by a mobile device or a computer. This happens at home and on the go. The stores are open 24 hours a day, and customers are demanding more from their businesses than ever before.
Billions of dollars are used in the form of cryptocurrencies every day. Visa, Paypal, Fidelity, CashApp, and many conventional financial institutions now use or provide access to encryption to make payments safe and secure. If those institutional dollars stay in space and don’t come out after a brief flirtation, then encrypted bank cards may become the norm within a few years.
The crowd of new retail investors in the space will see this as the ideal practical use case for their digital assets; it will be the path of least resistance for most. While these traditional financial institutions do not allow users to migrate crypto assets from their infrastructure, the fact that they allow users to seamlessly use their encryption as a payment method makes this point somewhat moot. This is the most obvious way to normalize the use of cryptocurrencies in daily transactions, which will lead to long-term mass adoption.
Payments for goods and services go back in one way or another to the earliest trade relationships between people. Payments have been used for buying products and services for ages. Money was later minted, and this remained the predominant currency for two thousand years. But now we’re diving into a payment revolution, and the currency is going digital.
The publication in 2008 of Satoshi Nakamoto’s article, Bitcoin: A Peer-to-Peer Electronic Cash System, marked a breakthrough in e-commerce financial infrastructure. And while blockchain technology can seem a little ahead of its time at times, it’s safe to say that bitcoin and other virtual currencies have potential e-commerce markets immediately.
An example: Almost a year ago, CoinPayments, one of the largest cryptocurrency payment gateways in the world, was integrated into the Shopify platform. This has brought cryptocurrencies closer to conventional consumers, allowing them to shop online using 300+ cryptocurrencies for payment.
What is a cryptocurrency, and why has it revolutionized electronic payments?
In simple terms, a cryptocurrency is a virtual unit of currency. Unlike traditional “escrow money” that is stored in your online bank account, such as euros, dollars, cryptocurrency does not have a physical form; it is bought and used virtually. Its existence is supported by advanced cryptography, while its capture is done by solving complex math problems.
One of the main reasons cryptocurrency has grown in popularity is that it eliminates contract intermediaries such as banks. Every cryptocurrency payment has built-in fraud protection: instead of storing its component data in a central system, it is distributed over a “chain” of “blocks” that are accessible to both parties but cannot be changed without complying with strict requirements. All of this makes theft extremely difficult.
A financial revolution inspired by cryptocurrencies
Although the acceptance of encryption payments still carries some risks, such as B. various technical obstacles, volatility and regulatory uncertainty, it is clear that this is an opportunity rather than a threat.
Overall, we believe that digital currencies will drive greater financial inclusion and that cryptocurrencies will level the playing field and create more business opportunities in the financial services space.
From the first currency to the cryptocurrency boom
Bitcoin remains the crypto figurehead across the board, which is not surprising considering that it was the first to gain traction and is still performing at its best. But the number of other cryptocurrencies on offer has exploded and is most recently over 1,750.
Why Your Market Needs Cryptocurrency Payments
The opening of e-commerce to new and innovative technologies makes it one of the fastest-growing sectors in both B2B and B2C retail. Given the huge and legitimate buzz surrounding cryptocurrencies, not to mention the very tangible benefits they offer both buyers and sellers, market owners should really be careful.
Bitcoin has made its ups and downs widely known, but the total number of wallet users is steadily growing, indicating a strong underlying public interest.
Why accept encrypted payments?
Cryptocurrencies offer has several advantages over conventional banking methods like:
1) Decentralized because it does not belong to a single person or government: it is a democratization of money management.
2) Fast transactions are confirmed and added to the blockchain in minutes, eliminating the need for third parties.
3) Safe as it is a shared database that cannot be changed unless most users decide to do so. It is also tamper-proof, as users can only store, access, and protect institution data with the proper credentials.
4) Economical, especially for international payments, as bank costs are significantly reduced with all fast and digital transactions.
However, businesses planning to accept crypto payments in the near future should be aware that digital currencies are highly volatile, and their value frequently fluctuates which can create additional uncertainty for businesses. The FCA also spoke on the issue earlier this year, warning businesses and consumers about the dangers of this new currency.
How can you introduce crypto payments for your business?
If your business wants to accept crypto and blockchain payments, it is important to use a suitable payment platform to minimize implementation risk and easily facilitate transactions in the most popular payment cryptocurrencies such as Bitcoin, Ethereum, and Ripple.
A ready-to-use payment platform would enable a transparent and simple merchant enrollment process that enables quick acceptance decisions for high-risk merchants. Not only does it provide the basics for a hassle-free payment implementation such as Bitcoin wallets, but it can also provide unique information about customers in this emerging industry.
Summing Up Cryptocurrency is already considered by many industries as a powerful method of payment. However, businesses and merchants need to understand this new payment revolution to make the most of it. Using cryptocurrencies for payments without adequate knowledge can lead to fraudulent activities and huge monetary losses. So, merchants need to spend some time understanding cryptocurrencies as a mode of payment to minimize the risks associated with them before integrating them into their business for payments.