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The earliest cryptocurrency, bitcoin, was created in 2009, and the price soared to $65,000 each at its peak.
Cryptocurrencies are disrupting the payments ecosystem right now and are slowly becoming mainstream. More and more people are starting to use cryptocurrencies, and it has become as easy as adding a new payment option for your customers. People have been concerned about the spending and receipt of cryptocurrencies for years. However, things started to take a turn as Paypal, the world’s largest payment service provider, started accepting cryptocurrencies, and big companies like Walmart also issued their cryptocurrencies. Visa and Mastercard have also announced their shift towards embracing cryptocurrencies, allowing people to load their credit cards with bitcoin and spend them at merchants’ stores.
# Benefits Of Accepting Cryptocurrency
1. Lower transaction fees
Since there is no third-party commission, cryptocurrency payments significantly reduce transaction fees. Small businesses that accept credit card payments through a credit card processing company typically pay a cost of about 25 cents per card swipe, plus 2% to 4% of the total transaction value. Many small merchants will set a minimum credit card purchase volume on the system to offset costs, and accepting encryption can reduce these costs to less than 1% of the value of each transaction. With aurpay’s solution, it only takes five thousandths or more minor. The handling fee will be received in real-time.
2. Protect merchants
Crypto’s decentralized setup also protects merchants from fraudulent chargebacks. Transactions are final because no third party can reverse the charge. For example, in the smart contract of aurpay, after the smart contract is deployed, the contract runs entirely automatically. The merchant has absolute control, so no one else, including the company, can control your assets.
3. Increase sales
Cryptocurrencies enable small businesses to scale and open doors to international buyers without access to their products and services. For example, some countries do not have well-established traditional financial institutions, and the credit card holding rate in these countries is shallow, but using cryptocurrencies can perfectly solve such problems.
4. Convenience for customers
Accepting cryptocurrencies provides customers with an additional payment method while providing extra protection for their information.
technical barriers
Accepting cryptocurrencies requires setting up a digital wallet on digital currency exchange or applying for a personal wallet to receive payments, which can be technically tricky for small business owners unfamiliar with the technology.
Cryptocurrency is an emerging field with a relatively steep learning curve, which may hinder business operators. Still, aurpay’s one-step crypto merchant solution can help you solve this problem very well.
5. Win over competitors
More and more businesses are accepting cryptocurrencies, and some of the more significant players are Microsoft, Overstock, Expedia, and Shopify, Walmart.
Today’s cryptocurrency market cap is currently $860 billion. In 2020 alone, the cumulative market capitalization of cryptocurrencies has grown by around 300%. This phenomenal growth is attributed to the general demand for cryptocurrencies, with more and more people investing in digital currencies. What does this mean for business owners like you? This means that investments and spending in cryptocurrencies have increased. As more people hold cryptocurrency as an asset, they also use it for everyday purchases. Don’t miss a crypto payment gateway. Take advantage of it today!
# Risks Of Accepting Cryptocurrency
1. Cryptocurrency volatility
The biggest risk of digital currency is price volatility, which makes its value extremely unpredictable. Bitcoin, for example, first traded in cents in 2009 but rose above $65,000 per coin in February 2021.
But using stablecoin can perfectly solve the problem. Stablecoin is a 1:1 pegged cryptocurrency with the US dollar, such as usdc and usdt can be quickly converted into US dollars. You can instantly convert digital currency into cash value through aurpay to help small businesses immune to this volatility.
2. Safety
Cryptocurrencies also face cyber threats, and while it eliminates cyber threats like stolen credit card numbers, the currency is still not 100% safe from cyber security threats. So far, there has been no way to prevent cyber criminals from breaking into users’ wallets completely. This is especially dangerous because, unlike fiat currencies like the dollar and euro, cryptocurrencies are not backed or insured.
However, if your wallet is hacked, then no measures can make up for the loss. Still, for non-custodial fund custody methods, such as aurpay’s smart contract, since the contract runs entirely automatically after deploying the smart contract, the merchant has absolute control, so no one else, including the company, can control your assets.
3. Regulatory uncertainty
Another problem with cryptocurrencies is that the regulatory environment varies from country to country and is changing rapidly. Lawmakers are currently working on regulations to govern it. As the adoption of cryptocurrencies expands, they are likely to develop further if regulations are in place in various countries, meaning business owners will have to adapt to policy developments.
# How To Accept Cryptocurrency
If you decide to go ahead and start accepting cryptocurrencies with aurpay, there are a few steps you need to take.
First, you must decide whether you want to accept payments using the processor or manually. A processor will simplify the process; you need to register with a company like aurpay to get started.
Learn more about the differences in the benefits of merchants and partners, and choose the proper role.
