Cryptocurrency has come a long way in the last decade of its existence. A few years ago, interest in cryptocurrencies was limited to niche subsectors of society. It was almost unheard of for merchants to accept any cryptocurrency as a form of payment.
This has obviously changed and cryptocurrencies are now becoming more widely accepted. Platforms like Visa are now integrating cryptocurrency solutions and the number of active cryptocurrency wallets is higher than ever. An increasing number of merchants, from AT&T Inc (NYSE: T) to KFC in certain countries, are accepting cryptocurrency in exchange for goods and services.
Even banks are becoming more open. According to Bitreporter, Spanish banking giant BBVA would be bringing cryptocurrency trading and custody services to its customers. BBVA currently has over $840 billion of assets under management, so this can onboard millions of new crypto users.
Why Merchants Are Latching On To Cryptocurrency
More people own cryptocurrency than ever before, and naturally, they will seek out means to spend it. This untapped market is large enough that PayPal Inc (NASDAQ: PYPL) enabled such transactions on its platform. We should expect to see more merchants onboarding crypto solutions as they become more convenient and easy to use.
Take credit and debit cards from a few decades ago, for instance. They were novel concepts and businesses leveraged this as a competitive advantage. Cryptocurrency is on track to become just as crucial in the global payments sector. Noticing this trend, many merchants are trying to stay ahead of the curve by adopting cryptocurrency payments into their existing business models.
Some Challenges To Overcome
While many e-commerce sites can be designed to accept cryptocurrency payments, business owners often do not know where to start. Many businesses are concerned about taking cryptocurrency due to potential security issues.
Cryptocurrency transactions are irreversible and can expose business owners to user error as well as hacks, security vulnerabilities, and other common complications. Finally, business owners might struggle with the idea of accepting currency due to the volatility involved. The cryptocurrency they accept for one item might cost less within an hour of the sale and they might not want to go through the trouble of selling their cryptocurrencies multiple times a day.
Innovative Companies Are Solving These Challenges
This gap in the market is being addressed by companies like CoinsPaid, a startup that helps businesses onboard cryptocurrency transactions into their systems. There is a misconception that a business owner must be tech-savvy or very well-versed in cryptocurrency to make such a change. CoinsPaid dispels such beliefs.
CoinsPaid integrates with businesses that wish to implement cryptocurrency. It allows companies to set up payment systems that enable customers to pay in cryptocurrency. When these payments are made, they are automatically moved to cold storage to prevent hacks or theft.
Cryptocurrencies can also be exchanged instantly into fiat currencies, and the final settlements are made in the currency of the customer’s choice. It helps ensure security and removes the burden of converting cryptocurrency to a more widely-accepted currency. External audits are also carried out to guarantee that all funds are appropriately transferred and settled.
Additionally, a built-in invoicing system saves customers the trouble of creating invoices by themselves and an automatic confirmation of transactions notifies the user of its completion. Once the CoinsPaid API is installed on the merchant’s platform, it handles all background tasks. The customer just needs to see an option to pay in cryptocurrency and the CoinsPaid algorithm identifies and accepts the payment.
Next, the CoinsPaid algorithm finds the best going price for the cryptocurrency-to-fiat trade, and after the business is done, the funds are stored on behalf of the merchant.
The cryptocurrency market is a fast-growing and dynamic one, and many of the merchants who are embracing it might find it difficult and confusing at first. With services like CoinsPaid, however, the process is much simpler. Merchants do not have to set up payment portals themselves or process the payments as this is done for them.
Disclaimer: Please consult your financial advisor before investing in any cryptocurrencies as they are volatile and pose risks for the average investor. This post is informational in nature and does not constitute financial advice. The writer does not have any relationship with CoinsPaid or other companies mentioned.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.