Cryptocurrencies are no longer the interest of niche technologists and YOLO traders. They are rapidly gaining momentum with regular people and finding uses in everyday transactions. 

Today, cryptocurrencies are being used in a number of everyday scenarios creating a more mainstream following. Opening a crypto business account can streamline transactions, providing businesses with an efficient and secure way to handle cryptocurrency payments. While Bitcoin has always been seen as a store of value, other coins have emerged as a means to transact. Solana for instance is designed for cost effective and fast transactions at scale making it one of the most popular and largest cryptocurrencies on the market. According to Binance, SOL has a market cap of $72.64 billion as of September 26, 2024. 

With cryptocurrencies, like SOL, continuing to gain popularity among consumers many businesses have taken note. 


Crypto As A Payment Solution 


The most direct way that cryptocurrencies can contribute to small businesses is by improving their payment efficiency. All businesses can use faster payment options with lower transaction costs. Rapid settlement tokens offer this utility and compete favorably with traditional card and banking institutions that have standard transaction costs and associated bureaucracy.


Businesses that integrate crypto expand their customer pool greatly. For instance, an online delivery store that allows people to pay in crypto will be appealing to a crypto user who wants to make direct payments. There are millions of people holding cryptocurrencies and capturing even a tiny segment of this population is incredible. 


Escrow payments are a feature of crypto payments that can boost business efficiency. An escrow payment is one where the parties deposit money in a neutral account and the merchant accesses the money upon performance of specific obligations. Crypto escrow accounts rely on smart contracts that auto-execute once the parties perform their obligations. Such tools can boost business efficiency. 


Managing Volatility 


The ultimate concern many business owners will have with crypto is volatility. Bitcoin can massive changes in value in just a few hours of trading and many are wary of such volatility. 


The crypto sector has introduced a silver bullet for such concerns with stablecoins. These are cryptocurrencies whose value mirrors fiat currencies like the US dollar through careful management and backing the crypto with real world currency. Stablecoins like USDT ensure that users have reliable trading pairs and payment processors have a stable cryptocurrency to accept payments. Volatility is not the barrier to entry it once was for people looking to accept crypto.


There will be further development work before cryptocurrencies become truly mainstream. The ultimate gray area remains regulatory developments relating to crypto payments. So far, the regulations have generally allowed crypto to grow but some countries have imposed increasingly tougher restrictions on the sector. 


Instant Payments Globally


Customers love to use crypto assets to pay for good and services. When making payment using cryptocurrency, consumers don’t have to wait for a central intermediary to settle the transaction. Instead, the payment can be processed almost immediately on the blockchain. Services like CoinGate can even help speed up transaction times when using coins like Bitcoin and Ethereum which can take more time to be fully confirmed on the blockchain. More businesses now buy ethereum and other cryptocurrencies as reserve assets, enabling them to process transactions faster while potentially benefiting from long-term value appreciation. The same does for businesses receiving payments from customers. 


Another aspect of crypto payments is the cross-border transaction ability and the fact that consumers don’t need a bank account to pay for good and services. This opens up global commerce for people in developing countries who are “unbanked” and don’t have the ability to use a credit or debit card to make purchases online. 


Lower Your Transaction Processing Fees


Merchant processing companies charge businesses between 2.9% and 5% to process credit card transactions. For many low margin businesses, this is a massive cut into their profits. Fortunately, crypto payments don’t have this issue since most crypto payment processors charge less than 1% per transaction.


Avoid Fraudulent Chargebacks


Credit card chargebacks are a business’ nemesis. Ecommerce businesses are hit the hardest with customers calling their bank to request a refund for a product or service they forgot they ordered, which results in up to 80% of chargebacks being filled wrongfully.

These chargebacks not only cause immediate financial loss to their business but can mean higher credit card processing fees in the future since banks will see them as higher risk. 

Thankfully cryptocurrency payments make fraudulent chargebacks a thing of the past. Each transaction is confirmed and solidified on the blockchain. It takes both parties to refund any transaction on the blockchain so customers will need to contact the business to receive a refund. 


Looking To The Future 


The crypto sector is now sophisticated and established enough to integrate with small businesses. Tools like stablecoin provide a soft landing for those seeking to handle crypto but are wary of the risk. Cryptocurrencies are now a feature of everyday life and businesses that integrate crypto payments are accommodating this reality.