This article was published on April 15, 2021, and updated on December, 2022.
Cryptocurrency is undeniably revolutionizing online payments. More and more consumers are looking to buy goods and services online with the use of cryptocurrency; however, while many businesses have implemented ways to accept payments on a WordPress website, not all business owners are open to cryptocurrency. If you are planning to integrate cryptocurrency as a payment method in your online business, whether you have a high-risk merchant account or not, it is important to get familiar with a few things first.
Cryptocurrency is a digital form of currency that involves encryption techniques to regulate the generation of currency units and verify funds transfer. Moreover, instead of being dependent on a central bank, cryptocurrency is stored on computerized databases protected by strong encryption, which can make it advantageous for high-risk businesses to accept cryptocurrency as a form of payment.
Cryptocurrency is not controlled by a centralized bank, corporate board, or government. The mode of payment is done via a peer-to-peer medium.
As long as you have an Internet connection and a computer, you can send and receive payments anywhere in the world.
The use of cryptocurrency offers opportunities for a broader market of consumers all over the world.
It is stored within complex encrypted networks, making data difficult to breach or hack.
Transfers and transactions are done in real-time.
You need to have an efficient, protected, and stable online shop. Thus, you need to have legal backing before accepting any cryptocurrency transaction. Well-established terms and conditions are required for your website.
This will help provide understanding for customers particularly on important points such as:
The use of cryptocurrency as a payment method will open an opportunity for a whole new market of tech-savvy consumers. Thus, it can appeal to consumers all around the world.
Cryptocurrency is processed instantly, unlike credit card systems that can take days to batch out and process. This will provide you with instant access to funds and faster transactions to help you streamline the cash flow of your business.
You can benefit from low fees every time you make transactions. The fees will depend on whether you will accept cryptocurrency through a third-party or a personal wallet, but it can offer lower fees compared to other online service providers.
After completing a transaction with cryptocurrency, it will become difficult to reverse the process. But this will also be dependent on the merchant. Retailers will also have more security against e-commerce fraud because of the absence of a middleman such as banks which enables a withdrawal of funds from your account even without your consent.
Created by Satoshi Nakamoto, Bitcoin is the one that started it all.
Created by Vitalik Buterin, Ethereum was created based on bitcoin for developers to create decentralized apps like contracts or codes without third-party platforms.
Run by a network of peer-to-peer servers, XRP was designed for users to send money digitally.
While cryptocurrency is one of the payment industry trends that’s gaining traction, do not attempt to accept payments on your website if you haven’t fully understood the terms and conditions of any of the available cryptocurrencies first. Discuss your options with a reliable payment processing company to determine whether you should start accepting cryptocurrency on your website.
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