Traditional payment options like cards, bank transfers, and digital wallets are widely used. However, many customers have started preferring cryptocurrency payments. Businesses that accept crypto payments are seeing increased interest, faster transactions, and reduced costs.
Our crypto payment processor has made accepting cryptocurrency payments easier and more reliable. Here, we will try to understand why customers are choosing cryptocurrency payments over fiat methods.
Reasons for Preferring Cryptocurrency Payments over Fiat Payments
Reduced Chances of Payment Failures
Traditional payments have a high risk of failed transactions. Bank security checks, card limits, and international restrictions may sometimes block payments, even when funds are available. Crypto payments are processed from wallet to wallet. Therefore, customers can have a smoother and more reliable payment experience.
- No Bank Approval: Customers don’t have to wait for a bank’s confirmation to complete a transaction. Customers can send crypto funds directly to a wallet, which reduces the chances of declined or blocked transactions.
- Faster Payments: Since there is no bank or central authority to confirm transactions, they are completed in minutes after being confirmed by a miner on the network. So, customers can make payments without authorization delays.
- Better Shopping Experience: Smooth payments improve the shopping experience. Since payments are nearly instant, the shopping experience can feel more reliable and convenient.
Cheaper International Payments
- Expensive Traditional (Cross-Border) Payments: Fiat payments consist of high transaction fees (~3% to 5%). This cost may go higher with the currency conversion taxes for cross-border payments.
- Affordable Crypto Payments: The average crypto processing fee is only 0.5% to 1%, based on the crypto payment gateway you are using. Also, there are no such currency conversion taxes. Customers just pay the product price without worrying about any extra charges for taxes.
Lower transaction costs reflect in competitive product prices. With crypto payments, customers feel that shopping becomes more affordable. So, they are expected to purchase from a seller that offers crypto payments.
Protection of Financial and Personal Information
Fiat payments go through many mediators. Many of them view transaction details, including the amount, involved parties, and medium. The data is available to some individuals. So, it can be tampered with or misused. We can say that traditional payments have some security and privacy risks.
On the other hand, cryptocurrency payments don’t go through many mediators. They go only to a miner for validation. No personal information is visible to miners. They are only allowed to validate transactions on the network. All the information is encrypted through cryptographic security. When the payment goes through CoinRemitter, a crypto payment gateway without KYC, the payment process becomes more private, as no personal information is collected.
With crypto payments, customers feel more confident with improved privacy and security. This is another reason why customers prefer crypto over fiat payments.
Payments Without Banking Facilities
As discussed above, crypto transactions don’t require banks. So, if there are no banks in a region, customers there can still make purchases by paying in crypto.
Cryptocurrency allows such customers to shop online. They only need internet access and a valid internet connection. They can send payments to global businesses without opening a bank account.
Advantages of Crypto Payments for Businesses
- Lower payment processing fees can cause higher profits.
- More security and privacy with our security features and No-KYC crypto payment processor.
- Access to a broader customer base due to global accessibility.
- Faster payments lead to quicker product or service delivery.
- Faster settlements, as our crypto payment gateway doesn’t hold your funds for long.
Conclusion
Customers have started seeing cryptocurrency as a must-have payment option when they shop online. Customers prefer this payment method because they are faster, safer, and more affordable. Apart from this, crypto can also cause a smoother shopping experience. Our cryptocurrency payment gateway makes it more beneficial for businesses and customers. In short, crypto offers many benefits as a mode of payment. Therefore, customers prefer crypto payments over fiat.