Benefits of stablecoins for business
Around-the-clock payments
Payments made on the blockchain are not constrained by holidays, working hours, geographical boundaries or interference from external parties – meaning that all transactions occur almost immediately, in comparison to traditional wire transfers which take one to three days to be finalized.
Cheaper transactions
Regular fiat currency transactions can be very costly, depending on the amount of money you’re about to spend. Usually, they’re around 3% of the overall value. But stablecoins and cryptocurrency transactions in particular offer much lower transaction fees, due to the decentralized, peer-to-peer transfer process.
Attract new customers
Marketing your business as a modern and sustainably developing one is important for reaching new and younger audiences, which are much more aware of the current technological advances and are much more likely to spend their assets on your products and services.
Overcome regulations
If you’ re operating internationally, then it’s harder to keep in mind the different restrictions and laws regarding financial dealings. Stablecoins make it easier for any merchant to accept payments from all over the globe without dealing with additional tax regulations. However, we do encourage all business owners to conduct their financial affairs in accordance with the local legislations.
What benefits would your clients gain?
For consumers, getting up to type your credit or debit card number into a website or risking privacy to save the information, will be an online shopping inconvenience of the past. With digital assets, users seamlessly connect their wallets to their browsers and can pay instantly with the available funds. Integrating digital asset payment options will make purchases a seamless extension of the online shopping experience.
Not only do you make it possible for people to make practical use of their stablecoins, but you also enable them to avoid additional taxes when shopping from foreign marketplaces. All those who hold stablecoins will be able to purchase the desired services and products with greater consumer protection because of the decentralzied nature of the blockchain and without spending extra on transaction fees.
What do you need to accept payments with stablecoins?
There are two different ways you could start accepting this form of assets. If you’re not very knowledgeable about the way these finances should be handled, then it’s best to integrate a payment processor, which would take care of all the transactions and even currency conversions. Finding a reliable payment gateway provider is essential to ensuring successful payments and higher level of convenience for all customers. Plus, such providers offer customer support, which is very helpful when experiencing troubles.
But if you don’t want to trust an intermediary of this type, then you must create a crypto wallet of your own, which will hold all the assets you receive. That would mean that it is your very responsibility to keep track of the incoming funds and their further use.
What to keep in mind before accepting stablecoin payments?
Of course, regulations are what every merchant should consider before starting to accept stablecoins or any type of cryptocurrency as a viable payment. Some countries have much stricter policies about such financial dealings, while others have still not managed to create a special legislation regarding the treatment of crypto as a whole.
The number one most important thing to keep in mind when deciding to adopt stablecoins as a payment option is to be very careful with the choice of stabelcoins you would like to receive. Always consult with a crypto finance advisor, in order to have a better understanding about the downsides of some stablecoins. For instance, USDT has been undergoing some issues in the past couple of years, due to the lack of certainty about the financial reserves Tether has, in order to keep up with its match to the US dollar.
What is the future like for stablecoins?
The potential advantages of stablecoins have enticed numerous industry players such as JP Morgan (JPM Coin) and Visa to join the system. JPM Coin was initially utilized by JP Morgan for internal transactions and in 2021, operated alongside the 400-bank Liink payment network and enabled securities settlement across the bank’s client base. At the start of 2022, the Central Bank of Bahrain collaborated with JP Morgan to examine the coin’s potential, especially in regards to cross-border payments. In March 2021, Visa declared that transactions could be settled using USDC, with Crypto.com being the first firm to try it out.
Conclusion
Although digital cash has been all the rage ever since it started to gain mainstream recognition, crypto holders still cannot enjoy spending their assets as they would fiat money. However, businesses from all over the world, especially online retailers, have had the guts to make it possible for people to purchase desired items and services with their crypto.
Stablecoins deserve to gain just as much popularity as any other well-known crypto coin, because they propose solutions for many of crypto’s issues like volatility, but still maintain its benefits, thanks to the blockchain technology they exist on.
It would be a no-brainer for merchants to upgrade and embed new payment services, which involved stablecoins. The best part about this option is that even if you’re uncertain about this innovative payment practice, you can always put it to a halt and still sustain the value of your funds.
