Payment card undoubtedly remains one great way of doing business today all around the globe. With this chip embedded tiny plastic, you can make purchases, withdraw money from your bank account and transfer cash electronically. However, the global financial innovation which ushered in cryptocurrency and other digital currencies have come to make business transactions very simple, fast and secured.
While many people and business organizations were initially pessimistic and expressed fear over its survival and safety, cryptocurrency due to its wider acceptability has been adopted as a viable financial and economic solution all over the world.
The global business community will not but favour cryptocurrency due to its many opportunities. Who will not want a swift, safe and less cumbersome payment procedures for goods and services?
Who will not embrace low rate charges for online transactions? Indeed crypto and other digital currencies provide endless possibilities for global commercial activities. Though card enabled transactions means a lot to people and businesses, cryptocurrency will be preferred to payment card because of the following benefits.
1. Low Rates or Charges
Cryptos don’t charge high processing fees, usually less than one percent. Credit Cardholders pay between three to five per cent to complete their transactions. Cryptocurrency does not require intermediaries such as banks and other financial institutions who charge their card-carrying customers arbitrarily when making purchases.
For instance, exchanges deduct less fee when you purchase bitcoin or do bitcoin transactions, although their rates differ but are cheaper compared to card transactions. As a merchant, you don’t have to worry about sidestepping the high cost of processing fee while consumers don’t have to bother bearing additional charges.
2. Speed
Cryptocurrency transactions are faster and happen almost immediately. Digital accounts are very easy to set up requiring less paperwork and corporate bureaucracy, unlike bank accounts. Becoming a new crypto user require getting an app with few steps and simple authentication procedures you’ve become a bitcoin wallet owner.
Online card transfers can be delayed for hours or days with pending issues which is not a good business culture since time is not a luxury someone can give away when money is involved. Sending digital happen within minutes. Crypto transactions have no waiting period, and it is completed when the right command is made.
3. Security and improved consumer privacy
Cryptos are generally more secure than card option. When you make a crypto payment, the transaction is usually encrypted, making untraceable to hackers. Consequently, the details and identity of the recipient are concealed while the address of the merchant is only on display.
It gives you anonymous status to ensure you are shielded from the monitoring eyes of fraudsters. Cryptocurrency transactions prevent identity theft and loss of funds.
Internet fraudsters will require sophisticated knowledge of supercomputers to undermine the safety of digital accounts. With credit cards, once stolen or misplaced and not immediately reported, it is far easier to hack and remove the funds in it, making it prone to scammers.
4. Lack of illegal claims or chargebacks
Not all patronizers are legitimate. Some want to use and dump a commodity and claim a refund. This can be detrimental to a business leading to loss of funds. As a merchant, the credit card holder can demand a refund arising product defect or unclaimed commodity.
Cryptocurrency transactions are utterly irreversible, leaving no room for a refund or chargeback once a transaction is completed. This has a way of putting an end to any form of argument of disputes
5. International influence
Though visa and MasterCard are found worldwide, the level of integration and operation of cryptocurrency among users is more. It is an operation that does not require a user to approach a bank at his or her locality before initiating a payment or receiving money. Crypto is a store of value which can be invested or used to make purchases internationally. Cryptocurrency has so much acceptability because it is a decentralized financial system which has caused people to control their funds as they like.
6. Divisible over as many Crypto bank accounts as you please
Within your crypto wallet, you can create a lot of account numbers or addresses depending on your choice. This can be very helpful when you choose not to have too much crypto in your pocket. Let’s assume you have € 2,000 worth of Bitcoin.
You can decide to put this at one bitcoin address, but also, if you choose to pay with your mobile phone, it is always helpful to use an application on your mobile device to create a separate bitcoin account number or address to which you transfer the specific amount you want to pay, €2000 for example.
Then you can spend up to €200 on Bitcoin via your mobile phone. You can also make your account numbers for rent and other fixed expenses, holidays, groceries or for the children. Simply put, with cryptocurrencies, you are your banker.
In conclusion
cryptocurrency has been regarded by many observers as the new face global commercial system because it brings more business alternatives. Many organizations and merchants are being drawn into this market because it offers a better, more accessible and convenient means of payment, reducing the influence of card usage and other electronic money transfer methods.
Photos courtesy of gettyimages.com
