Cryptocurrency/cryptocurrencies: The world is unerringly moving towards a digital ecosystem
Cryptocurrencies are a promising addition to that ecosystem providing unparalleled benefits to consumers and suppliers.
Cryptocurrency or digital currencies have become a hot topic in the past two years mostly however, there are still people who do not know much about virtual currencies. They are versatile, secure, and can be used for buying and selling of goods online. A lot of industries like travel, clothing, food, etc. have already started accepting crypto payments.
Because of the benefits of using bitcoin combined with our innovative approach and increasingly global presence, we have taken the decision to offer a Cryptocurrency payment option to our clients.
Internationally available
The first and the most important benefit that Bitcoin payments bring to the floor is that it allows payments to be done internationally without the worry of any currency conversions and the associated charges or spreads.
Lower risks for buyers
The payments can be completed by buyers using Bitcoins without needing to reveal any of their financial information and personal details.
This could be a big advantage for the buyers who feel that their personal data is not safe when doing online transactions. There is a certain amount of anonymity enjoyed by the coin holders as against those that use credit cards or debit cards to make their payments. As they are more or less like digital cash, any hacker is not able to intercept it easily. By making use of Bitcoin payments, the processing takes place in a decentralised platform and therefore it is not very easy to find out your identity. The coin address that is generated for a transaction is anonymous and it will change for each and every transaction made by the same user.
Lee Werrell, owner and CEO of Compliance Consultant, a trading style of the UK Compliance Consultant Limited group, said “Cryptocurrency payments are something that we have been considering for a while. Due to the explosive growth of online payment gateways, Payment Services Regulation authorisation requests we receive combined with Brexit and the international expansion we have seen over the last year, it requires a flexible approach to businesses where time means everything.”
Lower transaction fees
The transaction fees for coin payments are very low when compared to credit and debit card purchases. It is also very low for peer to peer foreign purchases. The standard wire transfers and the foreign purchases charge the fees and the exchange costs. There is no third party or intermediaries involved in carrying out a cryptocurrency transaction and hence the transaction fees are very low. The transfer of cryptocurrency also takes place very fast and there is no need for you to go through waiting periods and authorisation requirements.
Accepting cryptocurrrency payments mean lower fees when compared to traditional payment systems. Each year businesses pay US$ billions to Visa and Mastercard in credit card swipe fees alone.
This means that for every £100 you spend, £4 could go to a credit card company. There are debit card fees, credit card fees, ATM fees, transfer fees, overdraft fees, and other “hidden” charges.
Traditional payment methods involve a third party. You provide services to your customers and receive payments in your bank account for your services. But still, it is the bank who has control over your money. They can freeze your funds for whatever reasons. Also, your account can be closed if deemed necessary. This can result in huge monetary losses for businesses. But with cryptocurrencies payments, that will not be a problem.
As this is not the case with cryptocurrency payment systems, we believe it is better to keep as much of your money as possible, and we can keep our costs more affordable. Leading crypto payment gateways like Bitpay charge between 0.5% to 1% per transaction which is nothing compared to traditional payment processes. Even with exchanges you don’t need to pay withdrawal fee while buying or selling cryptocurrencies . In most cases, a digital wallet is completely free and will not cost you anything. No more sharing your hard-earned money.
Sensitive Data Is Protected
Banks and credit card companies obtain too much data from us and retain it. They have our name, address, phone number, financial information, credit score, and more. They also know where we’re spending our money. So, with fiat currencies, it is impossible to preserve our privacy unless we pay “by cash” each time; obviously impractical. However, virtual currencies assure a higher level of privacy. With crypto payments, the transaction data is limited to certain numbers. When a transaction takes place, the most you can know is a transaction id and the wallet address. The cryptocurrency payment processor will require your name and shipping address. No other information is shared with anyone. Thus, sensitive information is protected with crypto payments.
Security
Cryptocurrencies such as Bitcoin are based on blockchain which is a distributed, decentralised, digital ledger. The transactions made are permanent. They cannot be modified or deleted. So, the chances of fraud are reduced to a great extent. There will be no counterfeit attempts or identity theft. Besides, blockchain has never been hacked because, in order to change one block, the hacker will need to change all the other blocks on the blockchain since they’re connected. It is enough proof that blockchain is secure. Moreover, you have complete control over your funds.
Ease of transaction
Anyone from any country and with any age can carry out a bitcoin transaction. You will not be asked to furnish your proof of address, ID card, or passport details to send and receive bitcoins. If you have a smartphone with an active internet connection, you’re good to make transactions anytime you want. Also, cryptocurrencies are recognised everywhere. You can use them even when you don’t have an ID or a bank account number. For businesses who are looking to acquire international customers, crypto payments are a must. All one needs to do is to download a bitcoin wallet program and generate a bitcoin address to carry out Bitcoin transactions online.
No Chargebacks
From any enterprise perspective, there is always a fear of loss due to chargebacks. Business owners often complain that they lose a lot of money to chargebacks. A chargeback is basically a one-way scam where customers use the products and services for free by reporting fraudulent charges against the business to their credit card company. While it is possible to challenge those charges, it takes a lot of time and effort for the businesses that they finally decide to take the loss on the chin.
Cryptocurrency payments can help here too. The transactions that take place cannot be altered. They are recorded on an immutable public ledger. Therefore, businesses can easily eliminate potential fraudulent chargebacks by accepting crypto payments.
Overall, for us and our clients, accepting cryptocurrencies is a no brainer.
Lee Werrell Chartered FCSI FISM is owner and CEO of Compliance Consultant. Compliance Consultant is a niche UK Regulatory Consultancy specialising in Financial Services compliance and has a portfolio of banks and financial institutions that it has assisted since 2000.
Contact them at info@complianceconsultant.org or call +44 (0)207 097 1434.