Crypto payments could be daunting at first. However, once you get used to them, it is one of the most convenient and straightforward modes of payment out there. Here are four benefits of using crypto payments.
#1 Cross-border payments
Traditional payment methods can be very cumbersome and expensive for cross-border payments. Cryptocurrencies have been created specifically for this purpose. As long as your intended recipient has a compatible public address, you can transact with them.
As mentioned above, fiat payments tend to have hidden fees because of the number of intermediaries involved. On the other hand, cryptocurrencies are powered by blockchain technology, which directly links two parties without relying on an intermediary. As such, you don’t need to worry about hidden fees.
Another incredible benefit of the blockchain is its transparency. Traditional payment services are opaque, and it is quite impossible to track your money. When you use crypto payments, you can easily use a block explorer to track your transactions from the moment it leaves your wallet.
Traditional payment platforms may not always be online for a litany of reasons. Their servers could be down; it may be a bank holiday, etc. However, a decentralized payment network is independent of a single centralized service provider. The system uses a vast network of nodes, ensuring it is always online.
Another interesting thing about crypto payments is pseudonymity. When using crypto payments, you aren’t using your actual name. You use your public address, a random mix of alphabets and numbers. For example, if you use your credit card, your statement will say, “John May paid $3000.” On the other hand, if you pay using crypto, your statement will say, “0xc0ffee254729296a45a3885639AC7E10F9d54979 and 1000 USDC.” This pseudonymity can be helpful if the buyer wishes to preserve privacy.
Crypto payments give users a lot more control over their payments. In traditional payments, there is a preset limit on how much money you can send. Plus, centralized financial institutions can see, stop, hold, and dictate the flow of your payments. Crypto allows you to directly interact with the recipient without going through an intermediary.
Are people actually paying with crypto?
Yes! They are. Here are some stats from a report titled "Paying With Cryptocurrency."
- About 30% of the crypto owners said they had purchased something online with their digital assets.
- 21% of holders had made an in-store purchase with their digital assets.
- Nearly one-third of consumers who hold or have held crypto said they would switch merchants if they could pay with the digital assets.