Why Is Acquiring Payments in Crypto Cheaper Than in Fiat?
Cryptocurrencies have been gaining popularity in recent years, with more and more businesses and individuals accepting them as a form of payment. One of the main benefits of accepting crypto payments is the lower transaction fees compared to traditional fiat payments. In this article, we will explore why acquiring payments in crypto is cheaper than in fiat.
No Third-Party Fees
One of the main reasons why acquiring payments in crypto is cheaper than in fiat is the lack of third-party fees. When you accept traditional fiat payments, you typically have to pay fees to banks, credit card companies, and other financial institutions. These fees can add up quickly and eat into your profits. In contrast, crypto payments are peer-to-peer transactions, meaning there are no intermediaries to charge fees.
Lower Transaction Fees
Another reason why acquiring payments in crypto is cheaper than in fiat is the lower transaction fees. With traditional fiat payments, you can expect to pay fees ranging from 2% to 5% per transaction, depending on the payment method. For example, credit card companies typically charge around 2.9% to process payments. On the other hand, crypto transactions are processed on a decentralized network, which means the fees are much lower. For instance, Bitcoin transactions have an average fee of just a few cents.
Faster Settlement Times
Acquiring payments in crypto can also be faster than in fiat. Traditional fiat payments can take several days to settle, depending on the payment method and the financial institution involved. In contrast, crypto transactions are settled in a matter of minutes or hours, depending on the network used. This means that businesses can receive payments faster, which can improve cash flow and reduce the need for financing.
Chargebacks can be a significant problem for businesses that accept traditional fiat payments. Chargebacks occur when a customer disputes a transaction, and the financial institution reverses the payment. This can be costly for businesses, as they may lose the revenue from the sale and may have to pay fees and penalties. With crypto payments, chargebacks are much less common, as transactions are irreversible once they are confirmed on the network. This means that businesses can reduce the risk of fraud and chargebacks, which can save them money in the long run.
No Rolling Reserves
With crypto payments, there is no need for rolling reserves as transactions are irreversible, and the risks of fraud and chargebacks are much lower. Crypto transactions are processed directly between the buyer and seller through a decentralized blockchain network, eliminating the need for intermediaries such as banks or payment processors. This means that there is no need for third parties to hold funds, and payments can be settled instantly without the need for a rolling reserve.
Finally, accepting crypto payments can provide businesses with global access to customers. Cryptocurrencies are not tied to any specific country or region, which means that businesses can accept payments from customers anywhere in the world. This can help businesses expand their customer base and increase revenue, especially in areas where traditional fiat payments are not widely used or accepted.
No Withdrawal Holds
Crypto withdrawals with no holds have become increasingly popular in recent years, especially with the growth of decentralized finance (DeFi) and the wider adoption of cryptocurrencies. In the traditional banking system, withdrawals can often be subject to holds, where funds are temporarily frozen and unavailable for use. However, with cryptocurrencies, users can withdraw their funds without being subject to such holds, providing greater flexibility and control over their finances.
Most crypto payment platforms offer free integration for e-commerce. Cryptomus is not an exception. It is easy to start accepting cryptocurrencies for your business without being charged for connection at all. There are options – connect payments to your service by API SDK for PHP or by pre-made ecommerce plugins for WooCommerce, WordPress or one of many others. Have any troubles integrating? Our support team is always ready to help you.
Attracting a New Customer Base
In recent years, the popularity of cryptocurrencies has surged and many businesses are beginning to accept them as a form of payment. Cryptocurrencies offer a unique set of benefits for both merchants and consumers, making it an attractive payment option for online businesses. By accepting crypto payments, businesses can attract a new customer base, increase sales, and enjoy lower transaction fees.
Payment Amount Is Not Limited
Unlike traditional payment methods that may have restrictions on the maximum amount that can be processed, cryptocurrency transactions can handle large sums without any limits. This is because cryptocurrencies are decentralized and operate on a peer-to-peer network, allowing for transactions to occur without the need for a central authority to approve or process them.
Start acquiring crypto payments with Cryptomus, it is easy:
- Sign up to the platform
- Create a merchant
- Integrate Cryptomus into your business
- Start accepting cryptocurrency
Done! Now just enjoy the new clients you have attracted to your business by introducing a modern payment method.