Organisations should integrate digital currency payments to attract new customers
Cryptocurrency integration is once again on the rise. With the global market value for all cryptocurrencies sitting at $1.17tn as of March 2023, and with 420 million crypto users worldwide, digital currencies remain popular despite a recent slump. This is according to Jeremy Baber, CEO of Lanistar.
“Partners offering crypto payment gateways can offer a straightforward solution for merchants to adopt crypto,” commented Baber. “Gateways eliminate the need to keep a cryptocurrency wallet and convert digital currency into fiat money. This facilitates the broader acceptance of digital currencies, simplifying vendor provision of cryptocurrency payment options.”
Offering crypto as a payment method provides access to new demographic groups. Recent studies show that 40% of customers who purchase goods with crypto are new customers who are likely to spend double the amount of credit card users.
Merchants can introduce crypto payment gateways providing customers with a digital currency payment method without entering the cryptocurrency market. When customers purchase goods from a merchant with a crypto gateway, they are placed in a transaction window during the market conversion rate of the cryptocurrency they want to spend vs preferred fiat currency and converted into the fiat currency of choice. The funds are then deposited into a merchant’s account for withdrawal or other purposes.
Baber continued, “Gateways eliminate the anonymity of who merchants are dealing with, while maintaining the customer’s preference for digital currencies. Payments are accepted globally in any digital currency that the provider accepts. Refunds are smoothly received into the account managed by the provider, and merchants do not have to panic about understanding the complications associated with cryptocurrency.”
Cryptocurrency gateways allow instant transaction settlements for reduced fees, with service charges being paid by customers. Multi intermediaries are avoided with only singular crypto payment processors involved, improving customer experience. Merchants are also safeguarded against chargeback fraud thanks to the traceability of transparent blockchain networks.
Baber concluded, “An increasing number of consumers worldwide are opting to use cryptocurrencies for investment, operational, and transactional purposes. Organisations must steer the course and integrate with payment partners that offer cryptocurrency gateways that not only support multiple cryptocurrencies but reduce the risk of volatility for merchants. Digital currencies are the future of digital payments and have the potential to generate additional revenue by attracting new customers.”