According to a survey conducted at the end of 2020, more than 2,200 American companies have already accepted bitcoins. This number does not include bitcoin ATMs. The growing number of companies using cryptocurrencies like bitcoin for various purposes has raised the bar for acceptance. As the acceptance of cryptocurrencies grows, so does the payment environment. Although it is not a new form of money, it offers consumers a more flexible and personalized payment. However, the adoption of cryptocurrencies is still in its infancy and more work needs to be done to increase the number of crypto users.
How Marketers Can Promote Adoption
One way to achieve this could be to promote the purchase of products and services with cryptos. By ensuring that people can use them to pay for their daily services, it gives customers an insight into the various benefits that cryptos offer and thus increases adoption.
There are several reasons that favor the purchase of products and services with cryptos. Let’s dive into:
One of the biggest advantages of cryptocurrencies is that, unlike traditional financial institutions, they do not require an intermediary to process transactions. Peer-to-peer (P2P) shopping eliminates the need for a middleman and allows merchants to reduce their transaction costs.
Consumers do not suffer immediate consequences when the financial system is threatened. If a bank’s database is hacked, recovering lost or stolen information would be incredibly difficult. But in the case of cryptocurrencies, the rest of the data could still confirm transactions.
Access to new markets and demographics In the United States, almost 7% of the adult population is unbanked. More than two billion people worldwide do not have access to traditional financial services. With cryptocurrencies, people can now access financial services without an intermediary. The goal of Bitcoin is not only to democratize currency, but also to make it easier for businesses to reach a wider audience. This allows them to expand their reach and offer more sales opportunities, thus allowing more customers to use cryptos.
Instant Access to Funds
Public distrust of financial institutions and corporate values is at an all-time high, fueling the growth of cryptocurrencies. Just as the public is reluctant to put all their eggs in one basket, businesses face the same concerns.
When you offer payment methods using cryptocurrencies, you benefit from the ease of doing business and the efficiency of the process. This eliminates the need for an intermediary and provides both merchant and customer with a permanent record.
Low transaction fees
One of the main advantages of cryptocurrencies is that they have low transaction fees for transfers compared to the fees that banks and other intermediaries usually charge for transactions. In addition to transactions, merchants also have to pay various fees, such as settlement and transaction fees. For example, PayPal typically charges about % per transaction. On the other hand, Bitcoin exchanges usually charge around 1%.
If you are a business serving customers in other countries, cryptocurrencies can help minimize the fees associated with international payments because they are not tied to the country of origin. As a result, there are more people willing to make purchases, which drives crypto adoption.
High transaction speed
When making a financial transaction, the speed of the transaction is very important. This allows the user to complete the transaction quickly and efficiently.
Unfortunately, in the traditional banking system, it can take a long time for money to transfer from one account to another. This is mainly due to the security checks required to transfer money. Unlike the traditional banking system, the transfer speed of cryptocurrencies is very fast. It only takes a few minutes to complete the transaction.
Additionally, cryptocurrency transfers will not be affected by a central system failure. They can be available 2 hours a day and can also be used on weekends and holidays. However, in the traditional banking system, payment delays or account closures can occur, further delaying the transfer of funds.
The trust and comfort of consumers with the technology is strongly related to the trustworthiness of the platform and its transparency. Strong government regulations and the credible reliability of the technology are also beneficial factors in the adoption of cryptocurrencies.
With, crypto transactions, they are all recorded in a public ledger and accessible by users. In addition, users can see the history of their transactions from the beginning to the present. This transparency allows them to make informed decisions about their transactions and endorsements, which is very attractive to consumers.
The term “encryption” refers to the method of encrypting private keys and sensitive information, which gave rise to the term “cryptocurrency”. Private keys are given to owners of a cryptocurrency to ensure ownership and access to its blockchain.
Customers must select their digital wallet and authorize the transaction by paying with cryptocurrency. No sensitive information is required, such as when processing credit card transactions. Customers feel more confident doing business this way, so it’s a good way to prevent fraud.
Due to the nature of cryptocurrencies, their anonymity has become a critical feature in the financial industry. Thanks to this feature, they were able to attract many customers.
Bitcoin and other similar digital currencies are pseudonymous, which means that all transactions are recorded. The identities of receivers and senders are kept private using a digital code known as a “public key”. In particular, their identity is revealed only when they try to claim their coins on an exchange.
The Future of Cryptocurrencies With cryptocurrency widely recognized by industry leaders like Wikipedia and Microsoft, merchants should be at the forefront of this new payment technology. This innovation is expected to further improve the way customers pay.
As we have discussed, there are several advantages to using cryptocurrencies as a payment processing method. These include lower fees, faster cash flow and better fraud protection. As the number of digital currencies continues to grow.