Cryptocurrency is no longer a novelty or an investment vehicle reserved for the 1%. More people are waking up to the realization of crypto’s utility as a payment instrument and taking advantage of its real-world application. With household names like PayPal now supporting digital currencies, the nascent crypto sector is just starting to enter the mainstream.
If you are just getting started and looking to learn the advantages of using cryptocurrency as payment, let’s look at the main benefits.
Low Transaction Costs
Many platforms have hidden fees that add up once your place your order. In fact, most online platforms or online banking systems are a bit expensive as compared to the use of cryptocurrency. The reason for this is the use of third parties that process your payments. When you buy products with crypto, there are no intermediaries and thus – no additional fees to complete the transactions.
Security & Anonymity
The theft of credit card information is frequent in the digital age. Thankfully, many banks and payment processing companies reverse transactions if you are able to prove they were unauthorized. But dealing with them can still be quite a hassle.
Cryptocurrencies operate differently, and transactions are easily tacked on the blockchain without revealing your identity. When making cryptocurrency payments, you are not required to share any personal data as the payments are completely anonymous. This form of payment allows you to keep your info a secret and stay safe from hackers. r
It’s Globally Accessible
Everyone has experienced the hassle of converting one fiat currency to another in order to pay for a product or a service. This is one area where digital currencies hold the upper hand. Platforms and stores that accept cryptocurrency as a form of payment significantly facilitate your shopping experience. Cryptocurrencies have a global reach that has made life easy for individuals to transact regardless of geographical location. All you need is a smartphone and a digital wallet that is easy to open.
Fast & Immediately Available
Using intermediaries such as banks or payment processing companies like PayPal involves waiting for transactions to ‘clear.’ This can take anything between a few hours to several days. In some extreme cases, your payment can delay by up to a week if the service provider requires additional details for the recipient and/or the sender.
None of that is applicable when you buy products with crypto. Transactions on the blockchain are executed within minutes or hours if there is a lot of activity. But you can be sure that your money will be sent out and received on the same day.
Available To Anyone
Banks and payment providers often have a long set of criteria before they let you become their customers. And this gets even more complicated when you want to buy products from foreign companies or pay for services abroad. Then they may request proof of address, bank statements, identity verification, and, in some cases, employment status and salary information.
On the opposite end of the financial services spectrum – anyone with access to the Internet can send, receive, store, exchange, and accept cryptocurrency payments online. All you need is to open an account with one of the many crypto exchanges or services and register a wallet. You can then safely, securely, and cost-effectively buy products with crypto across the world in minutes.
As more and more stores and websites start accepting cryptocurrency, it is becoming more common to shop and buy products with crypto. For example, Bitcoin is now accepted by over 36% of small-medium businesses in the US, including Wikipedia, Microsoft, and AT&T. For a market dominated by banks and a few payment processing companies, this is the beginning of a new, more decentralized era.
More and more businesses and people around the world are continuing to discover the benefits of cryptocurrency transactions. For the first time in human history, we’re seeing an asset that can simultaneously benefit consumers and companies alike. What’s even more – it will open the door to global markets to people from every corner of the world, regardless of how underbanked or unbanked they are.
We still have a long way to go until companies will accept Bitcoin directly and not through payment processors or crypto debit cards. However, the adoption of crypto as a payment method is increasing with each year, and it’s clear cryptocurrencies are here to stay.