Benefits of Accepting Cryptocurrency Payments
The emergence of blockchain technology has spawned countless cryptocurrencies, and each of them has its own community, structure, specific use case, utility, and much more.
But all cryptocurrencies have one thing in common: they are changing the way society engages in daily financial activities and how the perception of money, property and value is gradually shifting towards a higher valuation of currencies based on blockchain.
Of course, these changes may seem rapid now, when the DeFi sphere alone seems to be halfway to becoming a trillion-dollar sector. Nevertheless, fundamental changes began back in 2008, when a document on bitcoin took the cryptographers’ mailing list by storm.
Since that day, there has been no way to come back from the exponentially growing hype around Bitcoin’s potential.
Soon, public interest in blockchain technology became even more intense, which led to an impressive growth of thousands of different cryptocurrencies, DeFi, NFT, dApps and DEX, as well as all the crazy things that appeared with them.
Crypto as a new kind of medium of exchange
Today, it is safe to say that not only bitcoin, but also cryptocurrency as a whole has achieved the status of a new, intriguing and exciting medium of exchange for both casual cryptocurrency users and businesses seeking to expand their reach of open and unlimited financial markets.
It seems obvious that today spending cryptocurrencies on goods or services no longer seems to be something unusual. There are enterprises from literally every industry imaginable that have switched to trading, transactions or accepting payments without intermediaries in decentralized networks – which was impossible before the invention of bitcoin – whether because it suits their business model well, or because cryptocurrency payment methods simply complement traditional ones well, or else something.
However, there are many more reasons to consider if you are starting to think that accepting cryptocurrencies for payments might be a good idea. Maybe even good for everyone! And you may be right, as evidenced by the following study.
Is accepting cryptocurrencies worth the effort?
Despite the fact that thousands of businesses are already accepting crypto payments as a viable form of payment, recent research conducted by the crypto exchange Crypto.com, show that there is still a huge discrepancy between consumer demand and the acceptance of crypto payments by merchants.
According to the latest study, which involved a modest 110,000 customers and more than 1.5 million World pay sellers, only 4% of the surveyed sellers accept crypto payments, although 60% are interested in such an opportunity.
Meanwhile, 40% of the surveyed customers already use digital assets to purchase goods and services, while 75% are interested in having such an opportunity.
As a result of this ~10-fold disparity between crypto-friendly customers and merchants doing business in cryptocurrency, 64% of customers Crypto.com They use prepaid cards to spend their funds in places that do not directly accept digital coins for payment.
This strongly suggests that there is a strong hunger for wider adoption of cryptocurrency payment methods.
These statistics point to huge opportunities for every merchant around the world, especially in the tourism, automotive, digital media and hotel industries, where demand and imbalances are highest, according to the study.
Although this is already a good enough reason, the high demand for cryptocurrency payment methods from consumers is far from the only incentive for every business to decisively consider allowing its customers to pay with cryptocurrency.
What are the business benefits of cryptocurrency?
Many people find cryptocurrencies very attractive for payment for various reasons – it’s faster, cheaper, easier, more private, and sometimes all at the same time.
Similarly, sellers who have installed cryptocurrency payment options also receive additional benefits, mainly in that they avoid the numerous problems and obstacles that arise when using traditional means of payment, such as credit cards or bank transfers, and use new opportunities that would otherwise be unavailable.
By introducing cryptocurrency payment rails into business operations, merchants always find themselves in a win-win situation, and that’s why:
Get paid instantly and from anywhere
When clients use crypto assets, their location does not affect the speed or cost of transactions in any way. In fact, in most cases, payments are processed in a matter of seconds, since most blockchains tend to settle cryptocurrency transactions immediately.
When using crypto payment processing services such as wellcoinex, even payments in Bitcoin and Ethereum, which usually require more processing time, can be detected and securely approved as paid even before they are fully confirmed on the blockchain, which significantly reduces the long waiting time.
All these crypto transactions are openly displayed in the public ledger and can be tracked in real time.
You do not need bank accounts or credit/debit cards to make transactions with cryptocurrency. Merchants can take advantage of this, regardless of whether they only offer digital products online, sell goods or services in a store, ship goods to another continent, or even raise funds from business partners.
Cryptocurrencies have no borders, as do the businesses that use them. Be that as it may, cryptocurrencies can always come in handy.
Avoid costly and inconvenient currency conversions
Let’s assume that your business tends to make international deals. In this case, cross-border payments through several banks on several accounts can be very difficult when converting currency, creating additional obstacles such as delays and additional costs.
On the contrary, payment or collection of payments in digital currency does not involve any currency settlements. And if this happens, it is not a burden compared to the headache associated with the exchange rates and procedures of fiat currencies.
This may not be the most relevant advantage for most businesses, but in some cases it can make you appreciate the simplicity of cryptocurrencies even more.
Enjoy lower transaction fees
Traditional payment service providers, such as credit card processors, easily charge merchants a standard commission of 2.9% or higher plus 30 or so cents for each incoming transaction. However, when using crypto payments, these commissions simply cease to exist.
The only circumstance in which a merchant may face some expenses is the use of a third-party payment processor that processes the payment flow and provides tools for accounting and other business operations.
However, the commission charged by crypto payment providers is several times less than that of traditional means of payment, and at best does not exceed 1% of the total transaction volume.
No more fraudulent chargebacks
Most e-commerce veterans have at some point encountered customers who called their bank and demanded a refund for their products or services.
The reasons why customers initiate refunds may be different – some people forget what services they have subscribed to and are afraid that someone is charging money from their credit card for accidental purchases, while others intend to take advantage of consumer protection laws and get a refund through the bank for a product already used or a service.
However, as it turned out, buyers can rarely distinguish a refund from a refund, which leads to the fact that up to 80% of all refunds are filled out illegally.
Instead of contacting the seller for a refund, some tend to call the bank and ask for a refund in a way that turns the situation into a so-called friendly, or involuntary, fraud.
The fight against fraudulent chargebacks is always an undesirable burden, but absolutely necessary, since every uncontested chargeback can punish the seller with a large fine from the bank and the loss of all profits from the sale.
In addition, if a merchant receives a large number of chargebacks compared to the total number of his orders, the credit card processor may consider discontinuing payment processing services for this customer.
Unfortunately, challenging chargebacks rarely benefits the seller. Research shows that card issuers usually tend to give preference to consumers rather than sellers.
To be more precise, it is five times more often, which traders do not really like, given how time-consuming and overwhelming these disputes can become.
The good news is that cryptocurrencies make fraudulent refunds a thing of the past – it is impossible to withdraw funds from cryptocurrency wallets without the permission of their owner.
Even if such a payment method exists only as an additional one, it can still significantly reduce the mentioned risks.
Embrace new, wealthier customers
According to a study of BitPay customers conducted by the research and consulting company Forrester Consulting, 40% of customers who prefer to pay with cryptocurrency come to the seller for the first time.
In addition, customers who prefer blockchain tend to spend twice as much money as those who pay with credit cards, and are more likely to return another time if their experience is positive.
This is especially true for businesses that serve the demographic group of educated men under the age of 34 – accepting crypto payments does not make sense for them, since they own the largest share of decentralized wealth in the world.
By allowing them to spend this wealth on your enterprise, you can significantly increase total sales and revenue, which leads us to the following argument.
Use crypto for marketing opportunities
If new customers come to you just because your business accepts some of the cryptocurrencies they own, it means that you have few decent marketing opportunities.
As a company engaged in the processing of crypto payments, we daily observe the success of merchants who advertise themselves as institutions friendly to cryptocurrencies.
In their opinion, you not only provide a product or service, but also make them available to as many people as possible and let them know that if you own a cryptocurrency, then you are always welcome.
Companies such as booking service Travala perfectly embody this way of thinking, showing that a crypto-oriented approach and smart use of social networks can boost sales for any type of business that decides to accept digital assets.
By providing funds for cryptocurrency payments, merchants gain a competitive advantage in the early adopter market and access to a new segment of customers, which only gets wider over time.
You can even collaborate with your payment provider to get more opportunities for cryptocurrency buyers online. In other words, if you use this opportunity wisely, it will pay off sooner rather than later.
Stay in control of your money
Cryptocurrency returns the actual ownership of money to people, including businesses. When you receive money in cryptocurrency, you decide for yourself whether you want to keep it in the form in which it is on the blockchain, or immediately exchange it for local fiat currency through third-party payment processors after receiving the final settlement.
Although it is worth noting that even if it is easy to accept bitcoin payments on your own, collecting several coins at the same time without outside help can quickly turn into endless hassle and a tax nightmare.
This is the main reason why most businesses do not develop cryptocurrency payment rails on their own, but instead do not bother at all or cooperate with other companies that can do all the work for them and even offer flexibility that they never dreamed of.
It’s easy and affordable to implement
If you are one of such tough entrepreneurs, you can create your own Bitcoin payment system using the open source BTCPay Server point of sale application – an independent open source payment processor for everyone.
This option is the most secure, private, 100% protected from censorship, and, in addition, accepting bitcoin transactions through it is free. The disadvantage is that you are left to yourself. You manage your private keys yourself, exchange the proceeds for local currency and independently conduct KYC of clients.
This can be a great option if you want to work with Bitcoin only. However, these days many companies want to collect payments in several coins or tokens at once and have all the tools to manage their cryptocurrency transactions without turning the whole process into a burden.
We at wellcoinex do just that – we provide merchants with everything they need to accept payments in numerous cryptocurrencies, while simultaneously guiding your customers through the entire payment process, and provide many options for withdrawing the collected funds (for example, to a digital wallet address or to a bank account).
Wellcoinexalso processes overpaid and underpaid orders, provides refunds when and if possible, and provides additional tools for the convenience of sellers, such as email billing/direct billing services or collecting payments via the Bitcoin Lightning Network without creating your own node.
It’s easy to set up the system, and the integration itself, no matter which method you choose, costs nothing. The only fee that wellcoinexcharges is 1% of the volume of transactions processed, and that’s it.
How to start accepting crypto payments and what to consider before starting
Before accepting cryptocurrency payments, the first thing to think about is whether you want to do it yourself or hire an assistant like Wellcoinex. It completely depends on what you want to achieve.
As we have already found out, independent work can be burdensome and impose some restrictions compared to hiring specialized companies. Management and maintenance will require special personnel, as well as time to master the crypto industry.
But let’s say you plan to accept several currencies and want to be able to receive final payments in your national currency (which also solves many of the tax consequences associated with cryptocurrencies).
In this case, there is no better way than to hire a payment processor that can handle even the most minor tasks when it comes to collecting crypto payments.
Wellcoinex offers several ways to create crypto payment methods, such as integration using plugins, buttons, billing functions or a code library that allows deeper customization through a special API, which leads to improved customer service.
All of them come with a well-thought-out payment infrastructure and a control panel for tax and accounting purposes.
Need more information? You can find out how crypto payments work on Wellcoinex by clicking on the highlighted link.
In addition, read the guide for accepting cryptocurrency payments.
Businesses that currently accept cryptocurrency payments
Currently, Wellcoinex serves hundreds of businesses that actively sell their goods and services using our crypto-payment solution and process ~2500 transactions daily on average.
You can follow the our success formula and serve the ever-growing cashless society today – the first step is to create an account with Wellcoinex and start exploring the wide range of cryptocurrency services we offer.
Ready to gain a competitive advantage over your competitors?
Cryptocurrencies have not become mainstream overnight. It took thousands of people and years of training to establish their current role in the financial markets and find much-needed scaling solutions that could meet the growing demand for transactions in decentralized networks, be it Bitcoin, Ethereum or other popular blockchain solutions.
Now that the foundation for this has been made, it has become easy to become part of the global economy and accept cryptocurrency.
And with the help of payment providers, the whole process can be simplified without much effort, which, in turn, gives the business numerous advantages that you simply cannot get anywhere else.
In fact, any business can easily integrate cryptocurrency payments and join the next revolutionary movement, and, best of all, it doesn’t take much.
Are you ready to raise your level? Accept crypto payments today with the Wellcoinex and start your crypto journey right now.
What is Uquid
Uquid is a payment platform that allows users to use cryptocurrencies to pay for goods and services at various merchants online and offline.
Uquid was founded in 2016 by a team of cryptocurrency enthusiasts and entrepreneurs with the goal of creating a payment platform that would allow users to easily spend their digital assets in the real world. The company is headquartered in Hong Kong and has offices in Europe and Southeast Asia.
In its early days, Uquid focused on developing a mobile wallet that could store various cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. The wallet was designed to be easy to use and provided users with a simple and secure way to manage their digital assets.
In 2017, Uquid launched its debit card. Users can load their card with various cryptocurrencies and use it to pay online and offline.
Today, Uquid is a leading payment platform in the cryptocurrency space, with thousands of users around the world. The company continues to innovate and develop new services that make it easier for users to spend their digital assets in the real world.
How Uquid works
Uquid is a payment platform that allows users to use cryptocurrencies to pay for goods and services at various merchants online and offline. Here is how it works:
- Create an Account: Users start by creating an account on the Uquid website.
- Add Funds: Once the account is created, users can add funds to their Uquid wallet.
- Get a Debit Card: After adding funds, users can order a Uquid debit card.
- Spend Cryptocurrency: Once users have their Uquid debit card, they can use it to spend their cryptocurrency holdings at millions of merchants worldwide.
- Use Digital Marketplace: Uquid also provides a digital marketplace where users can buy and sell goods using cryptocurrencies. The marketplace features various products such as gift cards, mobile top-ups, gaming vouchers, and more.
- Payment Gateway for Merchants: Uquid also offers a payment gateway that allows merchants to accept cryptocurrency payments.
Uquid also has its own coin UQC (or Uquid Coin) is a cryptocurrency that was created in 2017. It is a decentralized digital currency that operates on the Ethereum blockchain. UQC is designed to be used as a means of payment for goods and services, as well as a store of value.
The UQC token is used within the Uquid ecosystem, which includes an online marketplace, a digital wallet, and a debit card.
UQC has a total supply of 40 million tokens, and its price is determined by supply and demand on cryptocurrency exchanges where it is traded.
Does Uquid charge a fee
Yes, Uquid charges fees for its various services. Here are some of the fees that Uquid charges:
- Uquid charges a deposit fee for adding funds to your Uquid account.
- Uquid charges a one-time fee for ordering a Uquid debit card.
- Uquid charges a fee for loading cryptocurrency onto your Uquid debit card.
- Uquid charges a fee for withdrawing funds from your Uquid account. The fee varies depending on the currency and the withdrawal method used.
- Uquid charges a fee for buying and selling goods in the Uquid digital marketplace. The fee varies depending on the product and the transaction amount.
- Uquid charges a fee for using its payment gateway to accept cryptocurrency payments. The fee varies depending on the currency and the transaction amount.
The fees charged by Uquid are competitive compared to other payment platforms and vary depending on the service used. Users can view the fees on the Uquid website before using the service.
What is Bitpay
Bitpay is a cryptocurrency payment processor that allows merchants to accept payments in Bitcoin and other cryptocurrencies. It provides merchants with tools to manage and process payments, including invoicing, accounting, and reporting.
Bitpay also offers a prepaid debit card, which can be used to convert cryptocurrencies into fiat currency for use at merchants that do not accept cryptocurrency payments.
The history of Bitpay
Bitpay was founded in 2011 by Tony Gallippi and Stephen Pair. The company was started with the goal of making it easier for merchants to accept Bitcoin payments, and it quickly became one of the first companies to provide a comprehensive solution for Bitcoin payments.
In 2013, Bitpay became the largest Bitcoin payment processor, processing over $1 million in transactions per month. In 2016, Bitpay launched the Bitpay Visa Prepaid Debit Card, which allows users to spend their Bitcoin at any merchant that accepts Visa.
Bitpay also has raised funding from well-known venture capital firms such as Founders Fund, and has been reported to have raised more than $70 million in funding to date.
Bitpay also has a wallet service which allows users to securely store and manage their Bitcoin, and it has also launched a service that allows users to buy and sell Bitcoin.
Overall, Bitpay played a crucial role in the early days of Bitcoin, and helped to establish it as a viable form of payment. Today, Bitpay continues to innovate and provides a range of services to help merchants, businesses and individuals to easily use, store and manage cryptocurrency.
How Bitpay works
Bitpay allows merchants to accept payments in Bitcoin and other cryptocurrencies by providing them with tools to manage and process payments. When a customer wants to make a purchase, they can select to pay with Bitcoin or another cryptocurrency, and Bitpay will generate a payment invoice for the customer.
The customer then uses their cryptocurrency wallet to complete the transaction by sending the correct amount of cryptocurrency to the address specified on the invoice. Bitpay’s system will automatically detect when the payment has been received and will notify the merchant that the payment has been completed.
For merchants, Bitpay provides a variety of tools to manage their payments, including invoicing, accounting, and reporting. They can also choose to receive payments in Bitcoin or have Bitpay automatically convert the payments to their local currency.
Bitpay also offers a prepaid debit card, which can be used to convert cryptocurrencies into fiat currency for use at merchants that do not accept cryptocurrency payments. The card can be used anywhere Visa is accepted and can be funded with Bitcoin, Bitcoin Cash, Ethereum and other supported cryptocurrencies.
Overall, Bitpay aims to make it easy for merchants to accept cryptocurrency payments and provide a seamless experience for customers. The company’s platform is secure, easy to use, and provides merchants with the tools they need to manage their cryptocurrency payments effectively.
Can Bitpay be trusted
Bitpay is a reputable company in the cryptocurrency industry and has been in operation since 2011. It has a track record of providing reliable and secure payment processing services to merchants, and it has partnerships with many well-known companies in various industries.
Bitpay is a compliant and regulated company, with the necessary licenses to operate in various jurisdictions. It follows strict AML and KYC policies, and has implemented various security measures to protect its customers’ funds.
However, it is important to note that no company or platform can guarantee 100% security, and it’s always important to do your own research and due diligence when entrusting your funds to any third party.
In general, Bitpay has a good reputation in the industry, and many merchants and customers have had positive experiences using its services. However, as with any financial service, it’s always important to be aware of the risks and to take appropriate measures to protect your funds.
Does Bitpay charge a fee
Yes, Bitpay charges a fee for its payment processing services. The fee structure varies depending on the type of service and the volume of transactions.
For merchants, Bitpay charges a 1% fee for all transactions, with no additional monthly or setup costs. This fee is lower than the fees typically charged by credit card processors. Additionally, there is no chargeback risk as it is a decentralized currency and no chargebacks can be made once confirmed.
For the Bitpay Visa Prepaid Debit Card, there is a one-time card issuance fee of $9.95 and a monthly maintenance fee of $5.00. There are also certain other fees such as ATM withdrawal fee and foreign transaction fee.
For Bitpay’s wallet service, there are no fees to send or receive transactions. However, there is a network fee that is required to get a transaction confirmed on the blockchain network. The network fee is determined by the blockchain network at the time of the transaction, and Bitpay does not control this fee.
Overall, Bitpay’s fees are competitive and transparent, and it provides merchants and customers with a cost-effective solution for accepting and making cryptocurrency payments.
Can I use Bitpay to exchange currency
Yes, you can use Bitpay to exchange currency. Bitpay offers a service called Bitpay Exchange, which allows users to buy and sell Bitcoin and other cryptocurrencies. The service is integrated into the Bitpay Wallet and allows users to easily buy and sell cryptocurrencies with their debit card or bank account.
The exchange rate used on Bitpay Exchange is based on the live market rate and is updated frequently. Bitpay also allows to exchange and pay using other cryptocurrencies, like Bitcoin Cash, Ethereum and others.
Additionally, Bitpay also provides a prepaid debit card, which can be used to convert cryptocurrencies into fiat currency for use at merchants that do not accept cryptocurrency payments. The card can be used anywhere Visa is accepted and can be funded with Bitcoin, Bitcoin Cash, Ethereum and other supported cryptocurrencies.
Overall, Bitpay provides a range of services to help users buy, sell, and use cryptocurrency easily and securely. The company’s platform is easy to use and provides users with the tools they need to manage their cryptocurrency funds effectively.
Step-by-step guide on how to use Bitpay
Here’s a step-by-step guide on how to use Bitpay to make a payment:
- Sign up for a Bitpay account: Go to the Bitpay website and sign up for an account by providing your email address and creating a password.
- Verify your email address: You will receive an email to verify your email address. Follow the instructions provided in the email to verify your account.
- Add a payment method: Once your account is verified, add a payment method by linking your debit card or bank account. This will be used to buy and sell Bitcoin and other cryptocurrencies.
- Create an invoice: To make a payment, log in to your Bitpay account and create an invoice. Provide the required information such as the payment amount and the cryptocurrency you want to use.
- Send the payment: Once the invoice is created, you will be provided with a payment address. Use your cryptocurrency wallet to send the required amount of cryptocurrency to the specified address.
- Wait for confirmation: The transaction will be confirmed on the blockchain network. Bitpay will automatically detect when the payment has been received and will notify the merchant that the payment has been completed.
- Track your transactions: You can track all your transactions in the Bitpay account. You can also view the transaction details, including the date, amount, and status of the transaction.
Additionally, if you want to use the Bitpay Visa Prepaid Debit Card, you have to order it first and then fund it with your cryptocurrency of choice. Then you can use it anywhere Visa is accepted.
Overall, Bitpay’s platform is user-friendly and easy to use, making it a convenient solution for making and accepting cryptocurrency payments.
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