There have been big changes in the financial sector over time. But Crypto was the biggest event to occur and the most current change.
Bitcoin and other cryptocurrencies entered the scene and showed their viability. Designed as a payment method, it enables the transfer of monetary value similar to traditional payment methods.
Moreso, with more people becoming invested in crypto, it’s easy to scale the transitional effect fiat currencies will possess.
But how different is Bitcoin payment from other payment methods? This blog post addresses the nuances, giving valuable insight into both methods. Keep reading!
Benefits of Bitcoin Payment Over Other Payment Methods
While making payments with Bitcoin started recently, it offers many benefits. As a result, it is a far better way of making payments. Below are the various benefits Bitcoin payment offers.
Serves a Global Customer Base
Most places in the globe accept other payment methods like credit cards. But as we know, banks are not always next door and neither are they on every street. As such they are not always easily accessible
However, clients can use Bitcoin as a payment method all over the world. They can do so anywhere as long as there is an active internet service. What this means is that payments done with Bitcoin are not nation-specific. And for that reason, it is much more globally acceptable than credit cards.
For example, a customer can use Bitcoin to make payments from the U.S to Canada without having to exchange currencies. Also, the customer doesn’t need to wait long for the transaction to get approved.
So if you own a firm and want to increase your customer base, then adopt the Bitcoin payment method. The reason is that it will benefit you greatly as Bitcoin lovers from around the world will come to you.
Low Charge Fees
Firms that accept payments using credit cards ask for high charge fees to process payments. These fees may range from 1.5 to 3.5 percent of each purchase a customer makes.
Also, these credit card firms have full rights to change and increase their charge fees. Some retailers get forced to pass these charges on to clients since they have poor profits. Though this seems harsh, there was never a good option. At least up till this point.
But even though charges for Bitcoin can skyrocket, chances are, it will revert to normal due to how it was built. What’s more, paying with Bitcoin can see charges as low as 1% per transaction.
Likewise, with the introduction of crypto credit cards, people are free to spend their crypto like regular cash at supported ATMs.
Canada is one of the top countries that has adopted this system, partnering with Visa to create the right credit card for this.
Today, Canadians can withdraw from the ATM with the Bitcoin visa card Canada banks have provided. And the best part is that these cards do not come with annual fees while offering 1% cash back on all Bitcoin transactions.
Given the low fees, it’s clear why firms should be eager to adopt Bitcoin payment methods into their business plan. As a result, the plan will benefit both the business owners and their clients.
Clients can buy goods without incurring extra prices. Also, business owners wouldn’t have charges cutting into their profits.
One major trait of other payment methods like credit cards is that they depend on third parties. As a result, it is prone to cyber threats.
For example, if you want to buy clothes online, you must give the store consent to take money out of your account. And to do so, you need to input your credit details on their site. By doing so, it is easy for a hacker to steal your card info from their site.
This also applies to physical purchases. Your credit card details can get stolen from point-of-sale machines. For example, petrol pumps were made possible due to card skimmers inserted inside the ATMs.
Card skimmers started to show up in Florida in 2015; since then, their growth has been rapid. So if hackers get your card details with this device, they can empty your accounts in a matter of minutes.
On the other hand, the Bitcoin payment method only needs a little info from you. It only needs the amount and the receiver’s wallet address. Then finally, you confirm the transfer using a secret key that is securely kept in your wallet, which is hard to hack and steal.
The safe network of Bitcoin can benefit business owners as well. The reason is that Bitcoin transactions are final. As such, no one can commit refund fraud.
Also, firm owners won’t worry about protecting private credit card data. As a result, they won’t need to pay fees to credit card firms for compliance measures.
The built Bitcoin payment method provides anonymity. It only stores the sender and receiver’s public address and the transferred amount. As a result, no one can find out who you are or what you purchased.
Most people feel it’s only criminals that will want anonymity, but it is the opposite. Many regular clients of legal goods may not desire their names tied with transactions for various reasons. For instance, a person buying a house may like a covert mode of payment rather than a credit card.
Note that it is best to be alert while making purchases online, even if they are not secret deals.
Easy to Set Up
The final benefit is that the Bitcoin payment method is easy to set up. Deciding to get a credit card from a bank means you must be ready to stand in a long queue.
So if you thought you could stroll into a bank and your credit card is ready, you need to rethink it. The reason is that one must undergo a series of drawn-out registration processes before one can get a card.
It is even more hectic if you, as a business owner, want to set up point-of-sale systems with a credit card provider. But with Bitcoin, all you have to do to begin accepting and sending payments is create a wallet and get your secret keys. Here are a few simple steps to follow to do this:
- Enter the app store of your device
- Search and download a crypto wallet, preferably one with a good reputation.
- Open the app and fill in your details. The app provides you with a 12-24 words recovery phase. This is vital as it helps you retrieve your wallet whenever you’re switching to another device.
- Set up a strong password
- Add Bitcoin to your wallet (crypto wallets come with all crypto options).
- Click on the Bitcoin wallet to gain access to your sending and receiving address.
Overall, the entire process takes less than 10 minutes to complete. As such, even the least tech-minded folks can quickly complete the sign-up phase.
Though Bitcoins still need to be widely accepted as a form of payment, it offers many benefits that other payment methods are yet to offer.
Bitcoin provides customers with benefits like a quick, easy, and secure means to buy goods and services. Also, firms that accept Bitcoin payments get tighter security, anonymity, low charge fees, and so on.
With these benefits, it is clear that Bitcoin is the best payment method.