Is cryptocurrency just another passing trend that will soon be forgotten? If you look at the overall payment landscape, it looks like cryptocurrency use is actually here to stay. Major companies such as Shopify, Facebook, and PayPal are already accepting crypto as a form of payment.
But why all the hoopla and why should businesses take notice and consider accepting crypto as another form of payment as well? Read on to find out more.
What Is Cryptocurrency?
Cryptocurrency is “decentralized” digital money that is based on blockchain technology. It also has been referred to as a digital asset. There are specific “cryptographic protocols” that make their transactions a lot more safe and resistant to fraud.
All crypto payments are verified and recorded on a blockchain. A blockchain is an “open, distributed ledger” that takes care of recording all transactions in code form. You can liken them to a type of checkbook that is spread out across numerous computers worldwide. All transactions are recorded in “blocks”. They are all linked together on a “chain” of all past transactions.
Why Accept Cryptocurrency As Payment?
Now, more than ever, consumers are becoming more particular as to how they make their payments. Many are now using cryptocurrency as a form of payment for various reasons. Here are a few:
- They believe it is more secure and private than other forms of payment.
- They want to sidestep the high fees tied to traditional payments.
- More consumers want to support businesses that share their values. When it comes to crypto-use, they feel strongly about avoiding the traditional banking infrastructure.
- Cryptocurrency can be sent anywhere around the world, without any type of restrictions.
As any business can confirm, accepting more forms of payment allows you to tap into new customer bases, thereby increasing your income potential. It also demonstrates your business as a forward-thinking company whose values should be noticed.
Here are the ways that businesses can benefit from taking cryptocurrency as payment:
- More affordable processing fees. Unlike processing credit card payments, crypto fees only charge 0 to 1% of the full amount.
- Quick payment processing. By using blockchain technology, fund transfers can happen from a customer’s digital wallet into a retailer’s digital wallet in less than 1 minute.
- No more chargebacks. With crypto payments, all payments are final. Since all payments are anonymous, the crypto model does not allow reversals.
- Accept crypto payments from anywhere in the world. Cryptocurrency is an international currency and it is not controlled by anyone.
How To Accept Cryptocurrency As Payment
In order to process cryptocurrency payments, merchants will need to seek the services of a high-risk merchant account provider. It must be a high-risk merchant account provider since the cryptocurrency market is considered high risk.
It is considered high-risk due to crypto’s price volatility in the market, the public’s perception, and the government’s ever-changing, sometimes vague regulations.
To get started, choose a reputable crypto merchant account provider and fill out their merchant account application online. Along with that application, you may be asked to provide additional documentation such as:
- Certificate of incorporation. It includes the company’s legal address, name, and type of corporation.
- Certificate of incumbency (or equivalent). This document reveals the company’s owners – their names and the positions they occupy.
- Passports’ copies of all company owners and officers with their signatures. The scanned copies of the director’s & officers’ passports.
- The processing history. High-risk merchants always need to provide at least six months of processing history.
- License. Attach a license issued by your country’s responsible body
Start Accepting Crypto Payments Today
Crypto is clearly revolutionizing how payments are being made today. By getting on board and accepting crypto payments for your business, you will also be taking part in the revolution and enjoying its benefits.