News, Culture & Society

Bitcoin and other cryptocurrencies as a payment method

Cryptocurrencies appear to be all the rage these days, with digital assets making headlines consistently, promising new solutions to major financial problems.

With the world’s largest cryptocurrencies, Bitcoin and Ether, continuously growing over the past five years or so, many have been left playing catch up, wondering how to incorporate these amazing digital assets into everyday life.

One such way, other than using them as an investment vehicle, would be to adopt Bitcoin and other cryptocurrencies as a payment method. Here is an overview of how you can pay for goods and services using Bitcoin and other cryptos, which companies currently accept cryptocurrencies as payment, and the advantages to taking such a step.

Using Bitcoin Payment Service

Bitcoin payment or merchant services enable businesses to receive Bitcoin as a payment method in exchange for goods or services that are being sold. While some of these solutions are online (as simple as buyers sending Bitcoin or other cryptos to a digital wallet that you sign up for), others are in-person and work similarly to point of service (PoS) systems used by banks and credit card companies.

Alternatively, if merchants do not want to use these payment services which convert crypto into fiat currency, they can also opt to set up a digital wallet and accept crypto without any conversions. Many view this as slightly riskier, but crypto enthusiasts ascertain that it is an exciting way to earn cryptocurrencies.

Advantages to Using Crypto for Payment

A few major advantages come with using Bitcoin, Ether, or other cryptocurrencies as a payment method. Luckily, these advantages are not exclusive to the seller, but they also extend to the buyers who choose to use cryptocurrencies as payments as well.

One of the major advantages of using crypto or Bitcoin as a payment method is that these payment services tend to boast relatively cheaper transactional fees in comparison to credit card companies and bank processing systems.

While some credit cards charge anywhere between three and five percent on each transaction, with this number dramatically increasing if the charge is made overseas, Bitcoin and other crypto payment services typically only charge a 1% flat fee.

Moreover, Bitcoin and other crypto payments services allow borderless payment networks due to the nature of the decentralized blockchain ledger that these systems are built on. The result is then a system that allows for crypto transfers across the globe, seamlessly, instantly, and all at flat fees with no extra or hidden charges.

Another major advantage is the ease of using Bitcoin and cryptocurrencies as payment. In contrast to traditional payment systems, crypto-centric payment systems cut out the middle man and are executed quicker. Merchants do not have to wait several business days in order to get their money, rather the payment is instantly transferred from the buyer’s wallet to that of the sellers within a matter of seconds.

Security Features of Bitcoin and Crypto Payments

One major perk that is the result of adopting crypto payments, is the fact that it boasts impressive security features that are otherwise not present. For example, while many credit card companies routinely experience hacking and theft, that is increasingly more difficult when it comes to cryptocurrencies.

Due to the fact that they are built on a distributed ledger using military-grade cryptography, they are very difficult to hack and steal thus creating a secure and safe payments ecosystem.

Companies that Accept Crypto and Bitcoin

Major companies around the world have recently started accepting cryptocurrencies and Bitcoin as payment methods in exchange for goods and services. Some of the most high-profile examples include Tesla, Microsoft, Amazon, PayPal, LOT Polish Airlines, and the credit card companies Visa and MasterCard — both of which have developed crypto credit cards as well. Keep in mind that this list is not comprehensive at all, and is growing by the day with more and more merchants around the world adopting crypto as a viable payment method.

How to Get Started

If you are a business owner who would like to get started in accepting cryptocurrencies as a form of payment, it can be as easy as setting up a digital wallet and start asking, “cash, credit, or crypto?” at checkout. If you are a buyer who would like to buy things using cryptocurrencies, be sure to keep an eye on the growing list of merchants that accept crypto or purchase a crypto credit card that automatically converts various cryptocurrencies into fiat currency that is accepted by merchants around the world.

Technological advances such as cryptocurrencies and crypto payment services have overhauled our existing financial systems and are paving the way for smoother, simpler, and more efficient payment networks. With lower fees, more widespread availability, and military-grade cryptography that allows for ample security, using them is bound to change the world.