Here’s How Promoting Purchase of Products and Services via Cryptocurrencies Can Boost Adoption – crypto.news
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According to a survey conducted in late 2020, more than 2,200 US companies have already accepted bitcoin. This figure does not include bitcoin ATMs. The increasing number of companies using cryptocurrencies such as bitcoin for various purposes has raised the bar for acceptance. As the acceptance of cryptocurrencies increases, the payment environment begins to change. Although it is not a new form of money, it offers a more flexible and personalized approach for consumers to pay. However, the adoption of cryptos is still in its infancy, and more work needs to be done to increase the number of crypto users.
How merchants can drive adoption
One move to make this happen could be promoting the purchase of products and services through cryptos. By making sure that people can pay for their daily services through them, customers will get to know the various benefits that cryptos have to offer and thus drive adoption.
Several reasons for promoting the purchase of products and services through cryptos can drive adoption. Let’s dive in:
One of the biggest advantages of cryptocurrencies is that, unlike traditional financial institutions, they do not require an intermediary to process transactions. Peer-to-peer (P2P) purchasing eliminates the need for a middleman and allows merchants to lower their transaction costs.
Consumers also do not suffer immediate effects if the financial system is compromised. If a bank’s database is hacked, it would be incredibly difficult to recover any lost or stolen information. However, with cryptocurrencies, the rest of the data could still confirm the transactions.
Access to new markets and demographics
In the United States, almost 7% of the adult population is unbanked. Globally, more than two billion people also do not have access to traditional financial services. With cryptocurrencies, people can now access Financial Services without an intermediary.
Bitcoin isn’t just about democratizing currency, it’s about making it easier for businesses to reach a wider audience. This allows them to expand their reach and offer more opportunities to sell, thus allowing more customers to use cryptos.
Instant access to funds
General mistrust of financial institutions and corporate values is at an all-time high, fueling the rise of cryptocurrencies. Just as the public is reluctant to put all their eggs in one basket, businesses face these same concerns.
When you offer payment methods through cryptocurrencies, you can benefit from the ease of doing business and the efficiency of the process. This eliminates the need for a middleman and gives both merchant and customer a permanent record.
Low transaction costs
One of the main advantages of cryptocurrencies is that they have a low transaction fee when making transfers compared to the fees that banks and other intermediaries typically charge for transactions.
In addition to being charged for transactions, merchants also have to pay various fees such as setup and transaction fees. For example, PayPal typically charges around 4% for each transaction. On the other hand, Bitcoin exchanges typically charge around 1%.
If you are a business that serves customers in other countries, cryptocurrencies can help minimize fees associated with international payments because they are not tied to the country of origin. As a result, there are more people who want to make purchases, which drives the adoption of crypto.
High transaction speed
When it comes to completing a financial transaction, the speed of the transaction is very important. This allows the user to complete the transaction quickly and efficiently.
Unfortunately, in the traditional banking system, it can take a long time to transfer funds from one account to another. This is mainly due to the security clearance required to transfer funds. Unlike the traditional banking system, the transfer speed of cryptocurrencies is very fast. It only takes a few minutes to complete the transaction.
Furthermore, the failure of the central system does not affect cryptocurrency transfers. They can be made available 24 hours a day and can also be used on weekends and holidays. However, in the traditional banking system, payment delays or account closures can occur, which further delays the transfer of funds.
Consumers’ trust and comfort with technology are strongly related to the reliability of the platform and its transparency. Strong government regulations and the believed reliability of the technology are also beneficial factors for the adoption of cryptocurrencies.
For crypto transactions, they are all stored in a public ledger and can be accessed by users. In addition, users can see the history of their transactions from the beginning to the present day. This transparency allows them to make informed decisions about their transactions and strengthen confirmations, which is very attractive to consumers.
The term “encryption” refers to the method of encrypting private keys and sensitive information, from which the term “cryptocurrency” was born. Private keys are provided to cryptocurrency holders to secure ownership and access to its blockchain.
Customers must select their digital wallet and authorize the transaction when paying with cryptocurrency. No sensitive information is required, such as when processing credit card transactions. Customers tend to feel more secure doing business this way, so it’s a good way to prevent fraud.
Due to the nature of cryptocurrencies, their anonymity has become a critical feature in the financial industry. They have been able to attract a wide range of customers because of this feature.
Bitcoin and other similar digital coins are pseudonymous, which means that all transactions are recorded. The identities of recipients and senders are kept private using a digital code known as a “public key”. In particular, their identity is only revealed when they try to claim their coins on the exchange.
Cryptocurrency payments in the future
With cryptocurrency widely accepted by industry leaders such as Wikipedia and Microsoft, merchants should be at the forefront of this new payment technology. This innovation is expected to further improve the way customers pay.
As we have discussed, there are several advantages to using cryptocurrencies as a payment processing method. These include lower fees, faster cash flow and better fraud protection. With the proliferation of digital currencies, it is now more important than ever that merchants step up their efforts to bridge the gap between their customers’ expectations and their current business operations. Cryptocurrencies allow merchants to expand their reach and reach more customers, driving crypto adoption.