In today’s digital world, blockchain and cryptocurrency are the trending words. This led to the development of digital wallets to conveniently store their crypto assets and make instant payments via the crypto channels. Online retailers are still lagging in incorporating it despite the ease of using a crypto payment gateway. Thus, they don’t know how much profits they are letting go.
This guide examines how crypto is used in payments, the benefits online retailers can derive from accepting crypto, and how they can add crypto payment gateway to their payment options.
Context of Crypto as a Payment Gateway
Today, cryptocurrency is leveraged in two different means in the financial world. It is either an investment option due to its store of value as an asset. Individuals obtain specific units of crypto to hold for a long term before selling for a higher value. On the other hand, it is a payment option for products and services.
As for being used as a payment option, users are leveraging the peer-to-peer features available on crypto exchange platforms as a means of paying for a product or service. This exchange feature makes each transaction faster than the traditional payment settings and eliminates the third party from validating each transaction as a complete one.
All cryptocurrencies use a system referred to as distributed ledger technology (DLT) available on a decentralized control system known as the blockchain. This DLT is a widely distributed database shared across the network. And it records every information related to each transaction for a specific currency.
5 Benefits of Incorporating Crypto Payment Option in Your Retail Business
There is an increasing demand for online retailers to include crypto payment gateway as part of their payment option. This resulted from the surge in the global adoption of cryptocurrency and cutting across different sectors. As a result, some businesses adding crypto payment options stay ahead of their competition and are treated differently by consumers.
Due to this effort, the crypto market is experiencing an increase in transactions conducted daily. Thus, it is noteworthy to examine some businesses your online retail store will enjoy when you add a crypto payment gateway to your online business.
- Broad Market
If you are a business owner looking to attract international customers and accept payments across borders, you must include a crypto payment gateway in your payment options. When you consider the charges that apply to international transactions, you will agree that the costs tend to discourage potential consumers from other countries from purchasing from you.
But you can solve this problem by adding a crypto payment gateway to your payment option. It will give you access to a wide range of consumer bases and allow you to receive payment in a matter of seconds from different parts of the world. That way, you avoid international charges and present your online retail business to the global marketplace.
These crypto payment methods are cheap, fast, and simple to conduct.
- Instant Availability
When you compare the availability of your money through the traditional payment gateway system to that of crypto, you will observe that your money is instantly available when consumers pay via the crypto payment option. That’s because the money is deposited immediately into your wallet. And no regulatory bodies or third parties seek to validate or process the payments.
Instead, the money is immediately accessible as crypto tokens. Then, you can convert these cryptocurrency tokens to any fiat currency of your choice after every transaction executed via the crypto network.
- Security Over Your Money
The complex system used to build cryptocurrencies makes it hard for criminals to tamper with them or steal them. Unlike the online payment systems that can be hacked or tweaked, the crypto payment system prevents chargebacks and frauds. That gives enough security for online retailers over their money.
Upon the completion of payment via the crypto payment option, there can’t be any form of transaction reversal except with the merchant’s permission. This is because no third party—such as banks—can withhold the money and take it from your account without your permission. This authority is top-notch and gives online retailers an advantage against chargebacks and frauds.
- Fast Transactions
Before the advent of cryptocurrency, the famous act for online retailers when it comes to digital transactions is integrating digital payment options. This payment process is also fast and cashless, but its shortcomings revolve around the availability of funds after completing a transaction. Funds take time before they are available to the merchant.
But with cryptocurrencies, the transaction is processed immediately, and you will have quick access to the funds. That way, you will invest the money in other tools and operational processes that can help you scale your business.
- Low Transaction Fees
This is a piece of good news for online retailers. Online retailers must often be willing to part away with a certain percentage of each transaction conducted for a payment. This may not be cost-effective for these merchants due to no alternatives. But crypto payment gateway eliminates the extra charges attached to using a third-party digital payment option.
Although the transaction fees for each crypto payment depend on the kind of wallet, you are using. Are you using a third-party wallet or personal wallet? Regardless, the transaction fees are lower than the conventional digital payment options. Another added benefit is the rate of reducing international transaction fees via crypto. As a result, you bring more profits to your online retail business.
How to Add Crypto Payment Gateway to Your Retail Payment System
As an online store owner, there are two ways you can include a crypto payment gateway to your online store. As indicated above, either of the two helps you enjoy the maximum benefit of incorporating a crypto payment gateway. And you tend to secure enough profit for your business than the traditional digital payment solutions.
The two options available to accept crypto payments on your online store are:
- Through a personal wallet: Customers can pay directly into your digital wallet with this option. For this option, there is a need to create a virtual wallet or get a hardware wallet such as a USB Digital Drive like Ledger NanoX. The hard drive digital wallet is the safest and most secured virtual wallet to store your private key.
- Through a third-party payment process: In this case, you use a third-party service—such as PTPWallet or Coinbase—to set up your crypto payment gateway. The company will handle every bit of the transaction while ensuring that your tokens get to your wallet in no time.
One significant advantage of using third-party services over personal wallets is that crypto’s instant conversion can happen. That is, they can convert your crypto to fiat currency immediately without the fear of price volatility.
While the second option is the best option due to some technicality involved, it is tricky to choose the right company to contract for this. That is why our experts at PTPWallet ensure that your requirements undergo a thorough examination and are incorporated into your demands. Likewise, we offer different white-label crypto solutions for businesses.
With our white label crypto solutions for businesses, your online stores have access to four different options of crypto solutions. These solutions include White Label Crypto Wallet, White Label Crypto Wallet for ICO Crowdfunding, White Label Public Offering Solution, and White Label Crypto Exchange. These options make it easy for you to integrate crypto payment options without stress.
What is the Future of Online Retail Payment?
The global adoption of cryptocurrency is experiencing a surge. And this is due to the advent of decentralized finance (DeFi) and non-fungible tokens (NFTs). As a result, business owners—especially online retailers—are now facing high demands for accepting crypto as payments for products and services. Aside from that, the rise of the Metaverse will put businesses not accepting crypto to the fate of little success.
Thus, businesses need to incorporate crypto payment gateway into their payment options. This will give them a competitive edge ahead of others in their respective industry.