Cryptocurrencies are ever-rising and the number of people and businesses that are open to accepting payments with these digital assets has increased a lot. If you are wondering why people accept crypto payments for businesses, the answer is that they provide them with a variety of benefits.
Let’s discuss why cryptocurrencies are integrated with businesses and we’ll explain how to accept crypto payments as a business.
What are cryptocurrency payments?
Before we dive into crypto payments for business, it is only right to explain what cryptocurrency payments mean. As you may know, cryptocurrencies are digital currencies that do not have a physical form.
They are completely optimized for online use and make each transaction efficient and effective. Considering the fact that they do not have a physical form, accepting crypto payments for business is only done via the Internet.
By now, there are over 2,500 cryptocurrencies and you must be wondering how you can determine which options you should go for when accepting crypto payments as a business. The answer is that businesses deal with the most popular digital assets. These include Bitcoin, Tether, Binance Coin, Litecoin, Ethereum, Ripple, and many others.
Additionally, there are two main types of cryptocurrencies – stablecoins and highly volatile coins. Stablecoins are cryptocurrencies that have a fixed value as they are tied to a fiat asset. Tether is the most popular stablecoin. It is tied to the US dollar and 1 Tether is valued at $1.
On the other hand, highly volatile coins have a fluctuating value. They can rise and fall at any given moment. Bitcoin, Ethereum, and Cardano are good examples of this type.
Why do more and more businesses start accepting crypto?
Moving on, we are going to answer one of the most commonly asked questions related to this topic – why do so many people accept crypto payments for business? As we mentioned in the beginning, cryptocurrencies have a plethora of advantages and this is where we will dive into these advantages.
The first reason why people are accepting crypto payments for business is efficiency. Compared to other payment methods, such as bank transfers, crypto transactions are much faster. When you make an online transaction via bank transfers, it takes 3-7 business days for the transaction to be processed and completed.
That’s not the case with cryptocurrencies. These assets are released and received almost instantly. When a customer pays for a certain product or service via cryptocurrencies, you will receive the funds within 15 minutes.
The beauty of using cryptocurrencies is that they provide users with a certain level of online anonymity. After all, they are powered by cryptography, which hides your true identity. In doing so, all parties’ security is increased.
Online security is a major benefit these days. After all, the biggest disadvantage of the Internet is online scams and with the use of cryptocurrencies, this disadvantage is eliminated.
No or Low Fees
In many cases, when people pay with a certain method, the bank is known for charging processing fees. Although they are low, when you use your preferred method numerous times, the cost adds up.
Cryptocurrencies are highly decentralized, meaning that no one has the authority to charge fees. Hence, by using them, parties actually save money.
What types of businesses accept crypto?
Six years ago, if you told someone that you are accepting crypto payments as a business, they would be confused because not everyone understood how they work back then. All of that changed now. Many companies, including global brands, accept cryptocurrencies as a payment method. This includes various fields including medicine, law and law enforcement, education, science among others.
These businesses and corporations realized that the advantages that come with these assets are massive and this is why they choose to integrate them. Before we explain how to accept crypto payments for business, we listed a few well-known companies that allow their customers to pay in crypto for their services/products.
Tesla broke the Internet in 2021 when it announced that it will accept crypto payments for business. At the start, it only dealt with Bitcoin. Not only that, but the company’s announcement even helped Bitcoin rise in value.
Since then, Bitcoin was cast off, but Tesla announced that it will be accepting crypto payments for businesses. Dogecoin was listed as the only accepted digital asset.
One of the world’s biggest tech conglomerates is actually among the earliest crypto adopters. Microsoft has been accepting crypto payments since 2014. Even though the company’s relationship with the crypto world has been a bit rocky, they are known for accepting these payments for its goods.
Most recently, Microsoft’s venture capital fund invested $20 million for Space and Time, Web3’s startup, as the giant shifted its focus to decentralized data.
Namecheap is a domain name registrar and the world’s biggest budget hosting provider. It has over 10 million domains and more than 11 million users. The company was founded in 2000 and started accepting crypto payments in 2013.
Back then, Namecheap was the first domain name registrar to accept crypto payments. By 2020, it added a few additional Bitcoin payment providers and allowed customers to pay in crypto hassle-free.
How to accept crypto payments as a business
Before we close things off, we thought that it’d be a good idea to know how to accept crypto payments for business. The process of integrating these assets into your company is fast and simple. There are just a couple of steps that you need to complete:
- Set up a crypto wallet. It can work with the currency of your choice or have a multi-currency option.
- Register an account with NOWPayments using your email and crypto wallet addresses.
- Use an API to integrate crypto payments.
- Start accepting payments in crypto.
There are plenty of advantages that come with accepting crypto payments. That’s the reason why many are looking to learn how to accept crypto payments as a business. Transactions are efficient and secure and allow you to save money as they eliminate fees.