The most popular cryptocurrencies have been touted by some as the secure money of the Internet.
Using proper caution, one can make or receive payments to anyone without revealing any sensitive information linked to their digital accounts or wallets.
Riding high on the increasing acceptance of Digital Currency, many businesses have started offering payment-related services that make and receive payments in Digital Currency easy.
Thanks to these payment services, now offered by JJS Global, you can pay for a sandwich at the corner sandwich shop by scanning the shop’s QR code on your mobile phone, purchase a high-end laptop from a large and established corporation like Microsoft by making a payment in a Digital Currency or top off your Digital Wallet with a Digital Currency at an ATM.
More than 2,300 US businesses accept Digital Currency, according to one estimate from late 2020, and that doesn’t include bitcoin ATMs.
To captivate your merchants thinking about accepting Digital currency, here are some of the rationales behind why some businesses are currently using Digital Currency:
Accepting digital currencies can attract a tech-savvy, cutting-edge clientele that values transactional transparency. Studies show that up to 40% of customers who pay with cryptocurrencies are new to the business, and they tend to spend twice as much as those who pay with credit cards.
Embracing digital currencies not only fosters internal technological awareness but also positions your business advantageously for a future that could include central bank digital currencies and tokenized traditional investments. This proactive approach could give your business a competitive edge.
Digital currencies can offer access to new forms of capital and liquidity, and enable innovative options that aren't available with traditional fiat currencies. This includes features like programmable money for real-time revenue-sharing, and enhanced back-office reconciliation.
Digital currencies can act as a hedge against the depreciative effects of inflation on cash reserves. They offer a new form of investable asset with potential for significant returns, although it's important to note that they also come with their own set of volatility risks.
The first question to ask a merchant when considering accepting Digital Payments as part of their businesses operations is:
Does the merchant want to hold Digital Currencies on their balance sheet (the “Hands-on” approach) or simply adopt crypto-enabled payments (the “Hands-off” approach)?
The “Hands-off” approach simply means the merchant wants to accept Digital Currency, but just to facilitate payments. Digital Payments are converted to a Fiat Currency right at the time of purchase, the merchant is accepting the Digital Payment, but never actually touches it. This approach is a great way for a merchant to explore accepting Digital Payments, without the exposure or volatility of holding the Digital Asset.
The “Hands-on” approach to accepting Digital Payments means the business wants to go beyond just accepting Digital Currency as a form of payment; business owners in this category have made the commitment to adopt Digital Currencies as an alternative to cash and/or other assets held on their balance sheet.
We can also facilitate hybrid solutions of the two approaches to meet the merchant’s business objectives. Some merchants may want settlement in both Fiat Currency and Digital Currency.
For example, if a merchant makes a sale for $100.00 USD in equivalent Bitcoin, they can take a portion, say $50.00 in Fiat Currency and $50.00 in Digital Currency. These ratios can be scaled up or down as the merchant’s business needs change.
Consider the potential benefits, drawbacks, costs, risks, system requirements, and more. Your merchant may want to consult their accountant to discuss the advantages and drawbacks of holding digital currencies on their balance sheet.
No matter how the merchant wants to approach implementing Digital Payments into their organization, JJS Global is here to help. We have options that include payment gateway integrations for eCommerce to ATM’s that simply dispense Digital Currencies into customer wallets.
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