Cryptocurrency payment for services: myth or reality?
- 1 Why Do Governments Try To Regulate Cryptocurrencies?
- 2 Benefits Of Using Crypto As A Payment Method
- 3.1 Conclusion
At its core, crypto money units are records of their presence in electronic wallets in a secure data storage system. Cryptocurrencies operate based on blockchain technology. This is a way of storing data or a digital register of transactions, agreements, and contracts.
This technology can be used, for example, to store records of bank guarantees. Blockchain technology allows to create any registry – from the registry of real estate and its owners to a database of citizens’ medical records. The main idea of crypto is to make payments between users without intermediaries. At the same time, cryptocurrencies have similar and distinctive features to fiat money.
The similarity is that material resources do not back fiat money and cryptocurrencies. However, the issuing state provides fiat money, unlike cryptocurrencies. It is also worth mentioning that cryptocurrency performs ordinary money’s main functions and properties. It can act as a unit of account and as a means of exchange and savings.
Why Do Governments Try To Regulate Cryptocurrencies?
First, this is necessary to stop using cryptocurrency in illegal activities: drug trafficking and arms sales. Anonymous transactions are almost impossible to trace, making it difficult for law enforcement to detect such criminal schemes.
In addition, many scammers in the crypto-currency sphere deceive millions of dollars into their accounts.
In countries where crypto is legal, people invest it in the development of tech startups and calmly pay with digital coins for everyday goods and services, and this is now our reality.
Benefits Of Using Crypto As A Payment Method
Way To Entice New Clients
The number of people making payments with cryptocurrencies is growing daily. Businesses have a unique opportunity to penetrate this expanding market. By accepting cryptocurrencies, businesses gain a competitive advantage over their competitors who do not embrace this payment option.
Commissions Are Much Lower
When a business uses credit card payment processing, the transaction involves a processing company and other intermediaries who charge a fee. Business credit card processing fees are typically 2% to 5%. With cryptocurrency, the payment goes directly from the sender to the recipient, eliminating all intermediaries and significantly reducing costs. Crypto fees typically range from 0-1%, making it a payment method that enables businesses to save money.
Privacy And Enhanced Security
Credit card payments are a target for scammers and hackers. A business must not share personal data when making crypto payments, as payments are completely anonymous. In addition, due to the privacy of cryptocurrencies, there is no way to identify the buyer.
Vast Opportunities for Businesses in the Growing Crypto Market
In response to the market demand for businesses capable of providing infrastructure and processing for cryptocurrency payments, WhiteFlo presents a comprehensive software solution. WhiteFlo offers white label crypto processing software specifically designed to cater to the needs of crypto payment gateway providers, instant crypto exchange providers, fiat-to-crypto service providers, and more.
With WhiteFlo, new businesses can enter the market within a few months, gaining a competitive advantage over competitors still developing their own products. By leveraging WhiteFlo’s software, businesses can position themselves ahead of the competition and capitalize on the growing demand for crypto-related services.
Crypto provides many advantages over FIAT. The cryptocurrency is still in its early stages, but its total market capitalization is around $248 billion. No wonder so many companies around the world are entering the crypto space.
If you want to offer a crypto payment processing service, try Whiteflo crypto gateway software, implementing a product that will benefit your existing customers, generate new ones, and help you save on costs and development time.