With the rapid advancement of the crypto industry, many people discover the advantages of using virtual assets as means of transferring value. Yet, there is still a great number of individuals who are not aware of how cryptocurrencies work, which subsequently prevents them from getting a stake in the crypto economy. Today, tokens perform different functions on their blockchains; they are used for staking and convey governance rights.
Nevertheless, the primary role of all cryptocurrencies is serving as a payment method. In other words, cryptocurrencies constitute alternatives to the traditional fiat currencies and are in many ways superior to the likes of the dollar and the euro. NOWPayments offers a selection of reliable solutions for businesses and individuals that want to start accepting cryptocurrencies.
- Crypto payments represent a faster, more affordable and private alternative to fiat
- A wallet is an essential element for conducting a crypto payment
- Enthusiasts seeking more flexibility can use special crypto debit cards
- NOWPayments helps enterprises and people to start accepting crypto payments using solutions such as invoices, plugins, and a donation widget
Advantages of Crypto Payments
All cryptocurrencies can boast exceptional levels of privacy enjoyed by the users of blockchain technology. People do not have to disclose their identity when transferring crypto funds on the network. There are also currencies such as Monero, which have added extra privacy features to their blockchain to ensure that crypto investors can have a fully anonymous experience when interacting with digital assets.
The fast speed of transactions is a quality which is inherent to all types of cryptocurrencies. Of course, within the industry, certain coin transfers may take more time to get processed than others. Basically, everything depends on how many transactions per second (TPS) a blockchain can handle. Bitcoin manages 7 TPS, Ethereum does 25 TPS, while NEO sits at 10k TPS, and subsequently, its transaction time is under 15 seconds. When comparing cryptocurrencies to fiat transactions which may take several days, especially in situations of international transfers, the former definitely reign supreme.
Low Transaction Fees
Transferring money on the blockchain is easy and extremely affordable since one simply has to pay a small transaction fee to the platform. Unlike in the case of fiat transactions, where banks charge their clients at high rates for various operational expenses, crypto investors do not lose a substantial portion of their sum during the transferring process.
Finally, the fact that blockchain is a peer-to-peer technology means that users send their crypto directly to other users avoiding any third parties. In the traditional banking system, transferring money from one account to another requires an approval of the bank. Moreover, this financial institution retains a right to freeze the sender’s account over a sudden concern about fraudulent activity. Blockchains simply make any third-party service excessive, which leads to a situation when crypto investors can send their funds to any person on the planet at any moment and be certain that their payment will arrive in a matter of minutes or even seconds.
How to Pay with Crypto?
Exchanges are an essential element of the crypto industry since they ultimately constitute the places where millions of crypto investors can openly trade their assets and invest in new ones. Before conducting any kind of crypto payments, one needs to top up their balance with a cryptocurrency of their choice.
There are two types of exchanges: custodial and non-custodial ones. The former hold their clients’ assets, while the latter simply let the customer purchase a token of their choice and send it to their crypto address. Currently, there are numerous exchanges in the market of both types. The most reputable custodial ones are Binance, Kraken, and Crypto.com, while ChangeNOW is a good example of an excellent non-custodial exchange.
After purchasing their favorite virtual currency, one needs to transfer it to their crypto wallet. When choosing between a custodial and a non-custodial wallet, it is always important to choose the second option since it grants holders full ownership over their assets.
Storing digital currencies in a crypto wallet is a secure way to prevent any third party from accessing one’s funds. Wallets also allow users to send their cryptocurrency to other people on the blockchain. Basically, to conduct a crypto payment, all one has to do is to know the address of the recipient and have the required sum on their balance.
Debit Crypto Cards
Debit crypto cards are a relatively new way to perform crypto payments but are definitely one of the most convenient ones. Over the past years, Visa and MasterCard, two international payment processors, have collaborated with numerous companies from the crypto industry to produce debit cards which are integrated with cryptocurrencies.
For instance, a crypto card from Wirex lets its holders seamlessly pay at Visa vendors around the world using their digital assets. Wirex automatically converts cryptocurrency to fiat at the point of sale. Thus, holders of such crypto cards can effortlessly pay for services and products at their favorite merchants.
How to Accept Crypto Payments?
At this point, it is clear that cryptocurrency payments have considerable advantages over fiat, and there are numerous opportunities for crypto investors to use their funds to purchase goods and services. Enterprises can take advantage of the growing influence of the crypto industry and start featuring cryptocurrencies as a payment option.
Invoices are a simple and reliable way for any business to begin receiving payments in cryptocurrencies. NOWPayments allows its clients to compile their payment details into one box and make it available to their customers. Invoices have a client-friendly design and are easy to navigate. They can be used indefinitely and placed both on a website, a blog, or even printed out.
NOWPayments also offers a solution for organizations and individuals who want to have a crypto donation option. Clients can specify which cryptocurrencies they want to accept and the currency in which they would like to receive their donations and then put a donation widget on their websites or social media pages. NOWPayments can automatically convert crypto donations into fiat, Bitcoin, or any other cryptocurrency. Additionally, Twitch streamers can integrate a Twitch donation button on their channel by following a guide from NOWPayments.
Owners of online businesses that utilize different eCommerce platforms for hosting their stores will not have trouble incorporating crypto payments with the help of NOWPayments’ plugins. For instance, WordPress users can employ the WooCommerce plugin, while Shopify clients can start accepting crypto with this plugin. NOWPayments can convert all of the crypto payments into a currency of your choice and charges you only a small fee.
Companies that want to begin paying their suppliers or employees in crypto can implement a mass payments feature with NOWPayments.
Crypto payments are on the rise since more people realize that digital assets have a lot of potential due to being better than traditional fiat currencies. Blockchains ensure high standards of security, can process transactions in a fast manner and at a low price, as well as do not involve any third parties. Crypto investors can send their assets using a wallet or utilize a crypto debit card to conduct payments. NOWPayments offers a number of solutions to businesses and individuals that can help them start accepting crypto payments