Thousands of years ago people were exchanging goods for other goods – that’s what we call bartering. Then the government-controlled currencies, also known as fiat currencies were introduced. It was a huge leap forward for our society because people were finally able to trade more conveniently and huge distances between parties became much less of a problem. The appearance of the term “money” is one of the most important keys to creating the world we live in today.
However, since the beginning of the new century, like many great inventions, traditional currencies started to become obsolete. Nowadays, our society demands things to happen immediately. By today’s standards, waiting for more than a week for goods to arrive and more than an hour for the transaction to complete is unacceptable. As CEO of cryptocurrency payment processor CoinsPaid said in his interview: “As a currency becomes more digital, customers’ wants to become more aligned to faster payment methods”. And this trend will only become more present. From exchanging bread for butter to ordering sushi via messenger app: we are on the verge of another drastic change in how we approach payments.
In this article, we will talk about how the introduction of cryptocurrency payment systems will affect both customers and businesses.
You own your data
Financial institutions like banks collect most of the information about customers’ personalities and finance. Your bank knows your name, where you live, how much savings you have, everything about your investments, credit score, whether you married or not and the list goes on. Moreover, businesses also gather information about their consumers. Your browsing history on e-commerce sites and bits of your personal information are always stored and used by them.
Using cryptocurrency payment systems allow users to remain anonymous. The nature of blockchain technology implies that the only accessible piece of information is a string of numbers that is tied to your virtual wallet. Surely enough, there is still some personal information available to businesses, but the amount and significance of it are not comparable to what credit card transactions provide.
Less or no commission at all
One of the main ideas of the banking system is to make money using the money of its clients. ATM withdrawals fee, transaction fee, the yearly fee for having an account – almost any service offered by a bank comes along with a certain amount of money you have to pay.
Crypto wallets are superior to bank accounts on this matter. The majority of crypto processing systems offer to open a wallet for free and transaction fees are small or non-existent. For example, CoinsPaid provides its customers with 0% commission from transaction fees through its ecosystem.
Global and instant
Cryptocurrencies often don’t belong to any country, as traditional currencies do. Most of the cryptocurrencies available on the market are decentralized, which means it can be instantly traded across all of the parts of the globe. Banks on the other hand often have limitations when it comes to international trade, but all you need to trade crypto is internet access.
Speed, thus security
Today’s payment system provided by banks is always under a risk. Billions of dollars are lost due to credit card fraud worldwide. When you buy goods or services using credit cards, your transaction often takes days to complete, because your money always has to go through a third party, before reaching the receiver. This is the time when fraudulent actions take place. The customer cancels his payment before it’s processed, which means that business may already send goods or perform service without receiving any money. When it comes to crypto, once a transaction has been performed, there is nothing that can be done to reverse it.
Moreover, fraudsters often use drawbacks of the centralized nature of the banking system. The thing is that if a person may hack into the bank’s database – he instantly has access to information of every person in that database. However, because of the fact that most cryptocurrency processing systems are decentralized, there is much less risk of such a situation.
This may be not so obvious advantage at first sight, but considering the number of people that use crypto today, this may be a turning point for some businesses. If a customer happens to be an active cryptocurrency user and there is 1 out of 10 businesses in a particular niche that accepts crypto, it may be the determining factor in customer’s choice.
Moreover, he will most likely return to the same company next time. The adoption of the cryptocurrency processing system by most businesses is inevitable in the long run, but those who can get ahead of the competition earlier can easily win over this specific target audience.
Installing a cryptocurrency processing system for your business can be done easily and in the shortest period of time. Service like CoinsPaid would be a perfect example.
Lower prices, same profit
Cryptocurrency transactions can have a commission between 0 and 1.6%. Banks, on the other hand often charge somewhere between 0.5 to 5% for one transaction, depending on location, type of currency, etc. With this in mind, businesses now can attract more customers by lowering the prices, while receiving the same amount of profit per transaction.
Centuries ago the introduction of traditional fiat currencies was an enormous step for better living and convenient trading. However, unfortunately, those payment options don’t satisfy the needs of the current society.
Cryptocurrency payment methods offer huge advantages over traditional ones: lower fees, faster speeds, lower prices and a higher level of security. The introduction of crypto payment systems is the next step for better trading worldwide.