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For a long time, cash, credit and debit cards, and wire transfers have been the go-to payment options. But over the past decade, things have started to change. Cryptocurrencies, once a niche phenomenon, have become increasingly common. Today, there are roughly 600 million cryptocurrency holders worldwide, and that number will likely grow.
While some crypto holders treat their digital assets as investments, many — around 200 million globally — are willing to use cryptocurrencies for everyday purchases. They’re drawn to cheaper transaction fees, faster processing times, and better accessibility.
Businesses, whether they’re ready or not, are facing this growing demand. Some have already embraced crypto payments, while others are exploring their options. Many are hesitant, though: even those who recognize the potential benefits of crypto payments often fail to take the necessary steps to accept them.
We’ve partnered with CryptoProcessing, a crypto payment gateway designed for businesses, to shed light on the benefits of crypto payments and explain how a reliable and compliant payment processor can address common merchant concerns.
Why businesses choose to accept crypto
Accepting cryptocurrency payments has more benefits than just meeting customer demand for diverse payment options. One such benefit is financial. Cryptocurrency fees vary based on transaction type and asset, but they typically range between 0.01% and 1.5%. In comparison, traditional payment options, like credit cards and wire transfers, can have fees reaching up to 5%.
Cryptocurrency transactions also settle quickly. Even at their slowest, they’re at least 24 times faster than traditional methods. This isn’t just convenient for customers, it also means a faster, more predictable cash flow for businesses.
Security is another strong point for crypto. Cryptocurrency transactions rely on blockchain, which is a distributed ledger. This means every transaction is recorded, which reduces the risk of it being altered or tampered with. Blockchain transactions are also irreversible, which eliminates chargebacks.
Beyond financial and security benefits, there’s a reputational aspect at play as well. Accepting cryptocurrencies positions businesses as responsive to their customers’ needs, including their payment preferences. In the world where people travel extensively and many have embraced a digital nomad lifestyle, offering a payment option that transcends borders and allows save on fees gives a definite competitive edge.
Yet, these benefits are often overshadowed by concerns. The technology may seem complex, and stories of cryptocurrency heists have fueled perceptions of risk. It’s also unclear how much investment is required and when businesses can expect a return. However, partnering with a crypto payment processor can alleviate many of these concerns.
How a crypto processor can help overcome merchants’ concerns
If we had to single out the key concerns troubling merchants considering crypto payments, security would be top of mind. Crypto payment gateways like CryptoProcessing ensure you accept crypto payments legally and securely.
CryptoProcessing is registered and licensed in Estonia and recently obtained a registration as Money Service Business (MSB) to operate in the US. They regularly undergo independent security audits with firms like Hacken and 10Guard, which have revealed no serious security vulnerabilities. CryptoProcessing also employs a risk scoring system that analyses every transaction and makes sure their customers never come in contact with suspicious funds.
Another concern is the uncertainty surrounding financial outcomes and a lack of understanding of how accepting crypto can impact a business’s bottom line. We’ve already highlighted that crypto payments typically incur lower fees, which is already a significant advantage. But partnering with CryptoProcessing can unlock even greater financial savings. The company doesn’t charge any onboarding or monthly fees, and their transparent fee structure offers rates as low as 1.5%.
Volatility is another obstacle. Merchants hesitate to accept payments in highly volatile assets, and cryptocurrencies can be that. However, this challenge is easily overcome and shouldn’t be a reason to miss out on the many benefits of crypto payments.
Services like CryptoProcessing, for example, allow merchants to accept stablecoins — cryptocurrencies with stable value tied to real-world assets like EUR or USD. This helps avoid losses due to price fluctuations. The service also locks in exchange rates for 15 minutes after a transaction is initiated, to further mitigate the impact of crypto volatility.
Getting started with crypto payments
The first step is to be in a country where crypto is legal. Luckily, that’s most countries. The second step is to send a request on a crypto payment gateway’s website. CryptoProcessing, for example, contacts their prospects within 5 minutes of sending a request. Next, with most crypto payment gateways, you’ll get a demo of the solution and have a chance to ask questions. If you choose to collaborate with CryptoProcessing, you’ll be assigned a personal manager from the very start.
Most legitimate crypto processors will then ask you to pass a KYB check. This step can take some time, but it’s necessary for legal compliance, and we advise you to only work with compliant providers. Finally, once you submit the necessary documents, your personal manager and a dedicated technical team will guide you through the implementation process and set up all the agreed-upon crypto payment tools.
About CryptoProcessing
CryptoProcessing is a crypto payment processor registered and licensed in Estonia, with over 10 years of experience in the crypto industry. Having 800+ merchant accounts serviced, they process approximately €700 million in crypto monthly and support over 40 popular cryptocurrencies and 20+ fiat currencies. Their platform, designed specifically for merchants, offers many benefits, including:
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No setup or monthly fees
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No chargebacks or rolling reserves
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Flexible payment options, including invoices, payment links, channels, and e-commerce plugins
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Near-instant crypto-to-fiat conversions
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Flexible withdrawals via SWIFT or SEPA
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Mass payouts
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This article first appeared at Crypto Briefing
