Pros and Cons of Accepting Cryptocurrency as Payment
The cryptocurrency market has expanded significantly recently. Various cryptocurrencies have become common among users. It has resulted in people looking for web platforms that accept cryptocurrency payments, and businesses have to respond to this need.
However, the decision to accept crypto payments has its advantages and disadvantages that you should know. Let’s take a closer look at them to understand why you should add cryptocurrency to the available payment methods list.
Using cryptocurrency payments benefits
Let’s start with the advantages of accepting cryptocurrency on the site. They include:
- Low commissions
- International payments convenience
- Easy integration on the site
Cryptocurrency payments are much more secure than fiat currency transactions. Credit and debit card fraud reports are 35% higher than the previous year, meaning traditional bank accounts have become more vulnerable. Instead, cryptocurrency payments do not undergo third-party verification and go directly between the participants of the monetary transaction. The absence of intermediate links makes fraudulent schemes impossible, so cryptocurrency transactions are safe.
Cryptocurrency transactions are more accessible and more profitable for both parties. Most bitcoin exchanges charge up to a 1% transaction fee. In comparison, PayPal charges 4% of the transaction amount for its services, while banking requires customers to pay up to 10% commission on the payment amount.
In some cases, customers prefer cryptocurrency because payments can be made without borders and remain private. At the same time, the integration of the service for accepting crypto payments on the site takes very little time.
Disadvantages of cryptocurrency transactions
The main disadvantages of accepting cryptocurrency payments are:
- Price fluctuations
Cryptocurrency transactions cannot be canceled, so if a product is returned, the refund will also have to be done manually. However, it is also a protection for e-businesses, as the ability to cancel a payment sometimes results in fraudsters getting the product for free.
Among the disadvantages is the volatility of the cryptocurrency market, which businesses have to include in the price of the service or product. Also, the rules of some countries require companies to declare income received in the form of cryptocurrency. However, taxes are mandatory anyway for other types of income as well.
So, the disadvantages of cryptocurrency transactions are too relative to give up the pros that the business and its customers receive.