The growing rate of crypto adoption manifests itself in various forms, including in crypto salaries. Despite the common belief that cryptocurrencies are poor assets for using them as remuneration due to their intense volatility, the number of companies offering crypto salaries is increasing. As crypto becomes more attractive, more people embrace it and warm to the idea of accepting cryptocurrencies as their pay. Businesses also can benefit from paying their employees in Bitcoin and altcoins. NOWPayments provides companies with the necessary tools for making crypto salaries a part of their business model.
Key Points:
- Cryptocurrencies can be successfully used for paying salaries.
- Cryptocurrencies provide exemplary privacy, have excellent transaction speeds, and low fees.
- NOWPayments’ Mass Payments solution was designed for companies that need to perform numerous crypto transactions.
Advantages of paying salaries in cryptocurrency
Privacy
Blockchain is an anonymous system that can help companies to ensure the privacy of their employees. Although the majority of blockchains are public, they do not require users to disclose their identities. As a result, information about each transaction, despite being available for everyone to see, does not point to a particular person on the network. Confidentiality is extremely important for every business, especially when it comes to financial operations, but banks or mainstream payment processors such as PayPal do not provide the same level of privacy as the blockchain. Companies can offer employees an option of a cryptocurrency salary as an alternative and more private way of receiving their money.
Speed
Bank transfers are the typical method of paying out salaries. Yet, one of the key problems with them is the long periods these transfers frequently take. For instance, money sent on Friday may arrive only on Monday due to the weekend break. Cryptocurrency transfers face no such issues. In fact, they are processed almost immediately, 24/7. For instance, an XRP transaction takes 5-10 seconds which is practically unheard of for wire transfers. By paying their employees in crypto, companies can guarantee that the money will reach the worker the same hour, of not the same minute it leaves the sender’s crypto address.
Low Cost
Another issue of bank transfers, or, as a matter of fact, any type of money transfer, is the high fees. Cryptocurrencies once again have an advantage here since crypto transactions do not imply giving a fortune to a third-party service for payment processing. For example, NANO is a coin that has absolutely zero transaction fees, while Digibyte’s average fee is less than $0.001. Businesses, when paying out salaries, always have to allocate a substantial sum to fees, but if they switch to crypto, such an expense will go down drastically. That is why featuring cryptocurrency salaries is the most reasonable financial decision for every business.
Global Transfers
Modern companies operate globally and often have employees in various parts of the globe. Under such conditions, paying salaries becomes a daunting task that involves opening and managing bank accounts in several countries. Crypto transactions are borderless, and they do not require any registration. As a result, companies can pay salaries in crypto to employees living in any region on the planet with Internet access. Blockchains do not discriminate against users depending on their location. So, a company based in California can easily send a salary in NANO to a worker in Australia, and the transaction will be complete in under 10 seconds.
Guide of how to pay salaries in crypto
NOWPayments has created its Mass Payments solution specifically for companies that manage large amounts of crypto and conduct many crypto transactions. In order to start sending salaries, a business needs to perform several simple steps:
- First, sign up on NOWPayments’ official website.
- Then, go to the settings and generate an API key.
- Once the key is ready, choose the Mass Payment feature.
- After setting up Mass Payments, deposit your crypto into your account.
- Then, specify the addresses and the amount they need to receive.
- NOWPayments will automatically send all of these payments to their recipients.
Conclusion
The popularity of cryptocurrencies will surely drive the adoption of crypto further in the near future. As a result, more people will opt for a cryptocurrency salary instead of a fiat one. Cryptocurrencies are faster and cheaper than bank transfers. NOWPayments’ Mass Payments solution was created for businesses that need to make many crypto transactions simultaneously.