Cryptocurrency is a hot topic, and many online businesses are wondering if they should be accepting this alternative payment method. According to Insider Intelligence, the value of cryptocurrency payments will surpass $10 billion in total value this year, up 70% from 2021. Additionally, according to Deloitte, nearly 75% of retailers plan to accept cryptocurrency in the next 24 months. Is now the time for you to join them?
It might depend on your customers. According to 451 Research, $20.1 billion in purchases were abandoned in 2021 because customers’ preferred payment methods weren’t offered. If there is a chance your customers would want to pay with cryptocurrency, then you should consider offering it as a payment method to remove friction in the payment process and avoid cart abandonments. As with offering any alternative payment, you may be able to expand your audience to new segments of buyers as well, like, in this case, millennials. It also has been reported that crypto customers spend 2X more than customers paying by card, according to a Forrester study, commissioned by BlueSnap partner BitPay.
Let’s take a look at the potential benefits of accepting cryptocurrency payments and how businesses can protect their own interests while accommodating crypto customers.
Security & Cryptocurrency Payments
Cryptocurrency is becoming increasingly popular because of its reported security benefits compared to debit and credit cards. Because crypto payments don’t require third-party verification and crypto users’ information isn’t stored in a database, personal information is less likely to be compromised.
The relative security of cryptocurrency payments makes them beneficial for both buyers and sellers. Adding crypto does not come with the risk of data breaches and PCI compliance issues that accompany some other payment types.
Cryptocurrency Transactions Eliminate Chargebacks
Crypto payments are completely chargeback-proof. Once a buyer has made a payment to a merchant, they cannot reverse it with a chargeback. This feature allows merchants to manage their cash flow better since buyers cannot automatically receive a refund. This can be especially appealing for merchants who sell large ticket items or merchants that sell digital items.
Crypto Payments Without the Risk of Crypto
By using a crypto wallet, you can accept crypto payments such as Bitcoin, Ethereum, Dogecoin, Litecoin, Bitcoin Cash and USDC Stablecoin without the crypto risk. You instead get paid out in your choice of fiat currencies, like US dollars, Canadian dollars, etc.
Are Crypto Payments for You?
While cryptocurrency payments are a recent innovation, they do have benefits for companies that take advantage of them. The Forrester and BitPay study also found that companies that accept crypto payments see a 40% increase in new customer sales.
For businesses interested in expanding their customer base and increasing their revenue, adding the option to pay with cryptocurrency may help them achieve those goals.
Enjoy the Benefits of Cryptocurrency Payments and Mitigate Risk with BlueSnap and BitPay
BlueSnap has partnered with crypto gateway BitPay to allow businesses to easily accept cryptocurrency payments from customers through the BitPay wallet. BitPay can remove all the crypto risk by immediately converting the cryptocurrency to USD, CAD, euros or other fiat currencies, including other cryptocurrencies, before handing the payment off to the merchant. BitPay is a licensed money transmitter and also handles the AML/KYC/OFAC checks. BlueSnap and BitPay make it easy to accept cryptocurrency payments.
Aaron Schneider at BitPay has been in the payments/fintech industry for 23 years and has worked in acquiring, issuing, loyalty, alternative payments and crypto payments. He has his MBA from Florida Atlantic University. Connect with him on LinkedIn.