The advent of cryptocurrencies and blockchain technology has revolutionised the way consumers and businesses handle payments and payment processing.
While traditional payment methods are still used widely, more and more industries are becoming aware of the unique benefits crypto can provide and are making efforts to offer crypto as a payment option for customers.
Once thought of as reserved for computer obsessives and shadowy internet forums, crypto is now enjoying a level of mainstream success that many wouldn’t have thought possible. From online casinos to gaming platforms and from Starbucks to Twitch, a broad range of companies have begun to integrate crypto into their services.
What exactly is it about crypto that makes it a preferred alternative payment method? Keep reading to find out.
One of the most cited benefits that crypto can offer is much-improved transaction speed and efficiency.
Traditional payment methods can often be slow and sluggish for transactions, particularly when making cross-border or cross-currency payments, with some waiting times of up to several days. This is obviously not ideal for companies looking to conduct business quickly, which is why many have turned to crypto to solve the issue.
Crypto transactions process much faster than traditional methods, often in a matter of minutes or at near real-time speeds. Recent developments in crypto and blockchain technology, such as the Ethereum Merge, have only worked to further improve these transaction speeds.
What’s more, as crypto is decentralized and does not require oversight by a governing body, transactions come with significantly fewer costs and fees, reducing these by up to 80% in some cases. This offers substantial benefits to international businesses that can often pay heavy fees for cross-border transactions.
Cryptocurrency also offers improved security benefits when compared to traditional payment options.
Transactions are stored and encrypted on the blockchain, making them very difficult for scammers or cybercriminals to access. Furthermore, each transaction needs to be verified by the other computers on the network, which works to reduce the risk of fraudulent activity.
Crypto also offers consumers greater anonymity, which in turn provides further security benefits. Through traditional means, website users would have to register with the platform and divulge sensitive personal and financial information to make payments. This can leave users vulnerable to cyber-attacks, including hacks and data breaches, where criminals attempt to steal customer information. Having data stolen by criminals can lead to serious consequences for victims.
By using crypto, customers can make payments anonymously, without having to reveal personal details. The adoption of alternative payments by businesses has become common. Before crypto had an audience, betting sites were allowing players to deposit and withdraw funds using Neteller, Skrill, and PayPal, for instance, reinforcing that player and customer protection is absolutely paramount.
When compared to opening an account with a bank or established financial institution, using crypto is far easier and more accessible.
To open a cryptocurrency wallet, all that is required is a device like a laptop or a smartphone and an internet connection. There is no need to provide identification and no background or credit check. This means that people who are unable or unwilling to use traditional financial companies now have the option to make online payments, opening new demographics and customer markets for businesses.
Crypto continues to see integration and acceptance as a viable alternative payment method across a range of global sectors and industries. Digital currency offers several benefits over traditional methods, with improved security, greater accessibility, and faster and cheaper transactions.
As the technology further improves and develops, we can expect to see many more mainstream brands adopt crypto as a payment method to take advantage of its numerous plus points.