As blockchian technology and cryptocurrency are sweeping across the globe, crypto has made great strides in terms of widespread acceptance and adoption. Some businesses have already earned massively using cryptocurrency for everyday transactions and asset management. While some still have concerns about whether to utilize this alternative to traditional financial instruments.
Concern 1: Security
A primary concern for merchants looking to adopt cryptocurrency into their payment network is the lack of regulation. Cryptocurrencies are not issued and belong to any countries like the United States, Japan, or China, and there is very little regulation governing the use of cryptocurrencies as legal tender. This means that crypto assets are not protected by financial legislation, creating a degree of risk in their handling. So security is a major area of concern in crypto payment adoption for merchants weighing the benefits of accepting crypto payments for their goods or services.
However, let's look at some statistics about traditional payments and we may find that cryptocurrency is considered more secure than credit and debit card payments.
In 2020, the volume of attempted fraudulent transactions rose 35% in April 2020
as compared to April 2019. Online credit card fraud statistics show that 56% of online shoppers curtail their e-commerce shopping and close their payment accounts after experiencing - or sometimes just hearing about - a fraudulent event. And, unfortunately, small businesses are often the target of this type of fraud.
One of the principal benefits of cryptocurrency in this regard is cryptocurrencies do not need third-party verification and payments are final and irreversible unless a refund is issued by the merchant. This eliminates the risk of chargebacks and payment reversals and keeps payment oversight with merchants. And on the consumer side, their information is stored in their crypto wallet rather than a centralized hub, and the blockchain general ledger is used to verify and record every transaction, making it very difficult to steal someone’s identity.
As for regulations, with the blanketing of blockchains and cryptocurrencies, more oversight will be put forward.
Concern 2: Scalability
Additionally, cryptocurrency payments is still in small scale compared with mainstream payment networks. Its poor scalability is hampering widespread adoption. Mainstream payment processing networks can process more transactions per second than blockchain networks, representing a more scalable payment solution for growing or large businesses. And for traditional businesses, the exchange between fiats and cryptocurrencies might be complex and time consuming.
While, in a survey of 110,000 Crypto.com
users, 75% registered an interest in paying for goods and services with their crypto assets. This interest was distributed evenly among industries also – showing that many types of business stand to benefit from bringing crypto payments into their infrastructure.
Crypto and digital payments represent a more customer-centric and device-forward payment dynamic, placing a premium on convenience and flexibility for customers. Expanding offerings to appeal to this demographic would be prudent, especially when taking account of the growing statistics – over one third of consumers
aged 18 to 54 own crypto assets, and 70% of these individuals would use them to make payments if the option was made available. Expanding on these figures, 54%
of current or former crypto owners belong to Generation.
Projections expect the value of blockchain retail purchases to increase to $4.6 billion
by 2028, presenting a significant opportunity for businesses able to tap into this segment of the market.
iPeakoin’s No Risk, One Solution for fiats and cryotocurrencies
Handling cryptocurrency can come with some risk, but also presents significant opportunities in expanding your customer base and providing excellent customer service in allowing patrons to pay in their preferred currency.
At iPeakoin, we care about Risk Management and suggest you to get rid of risk control and management and leave it to the experts. Our frictionless buy and sell functionality of Crypto Wallet allows users from over 180 countries/regions to securely exchange mainstream cryptocurrencies. And for traditional payments, we have Global Account to meet your needs of making or receive payments in 40 fiat currencies. Our crypto-and-fiat bridged solution makes the tediousness of managing crypto wallets and bank accounts a thing of the past.
Contact us today to see how our integrated interface can provide a quick and painless experience, and same-day settlement for your business.
iPeakoin is a licensed FinTech platform that drives the innovation of crypto payments. With a scalable Card-as-a-Service to bring crypto further into mainstream financial services, we help crypto businesses build stronger connections with end users.