Prominent payment processors like PayPal and Apple Pay already dominate the expedited payments landscape, leaving little room for new entrants. However, crypto-based payment processors have an opportunity in this already saturated market. These crypto-based payment processors offer numerous benefits that conventional processors like PayPal do: Crypto-based processors are able to at least match the low commision rates offered by conventional competitors. They also support e-commerce integration capabilities and FIAT currency settlement.
Despite the competitive value proposition offered by cryptocurrency, they are not without skeptics. Some argue that mining cryptocurrencies are net-negative on the environment, and are not aligned with the emphasis on Environment, Social, and Governance (ESG) progress that many companies are now embarking on. Others cite price volatility as an inhibitor to payment adoption. These are valid but short-term teething issues. The public ledger model of blockchain allows constituents to react more quickly to these ESG and price volatility concerns. For instance, Elon Musk’s concerns around the energy needed to mine cryptocurrency swiftly drew commitments from miners to move toward renewable energy sources, while insurers and risk management firms now seek to understand how to price insurance tied to cryptocurrency volatility, enabling businesses to insure themselves against large price swings.
Apart from achieving these table stakes, Crypto based payment processors also differentiate themselves by offering additional benefits to their retail partners and users including:
Superior Consumer Privacy: Being based on Blockchain Technology, crypto transactions are carried out with less Personally Identifiable Information (PII). In fact, some crypto assets like Monero and Zcash allow for an even higher level of consumer privacy protection.
No chargebacks: Transactions on blockchain are permanently recorded, making them irreversible. This aspect immunizes crypto payments accepting merchants against chargebacks, allowing for brands to reduce the cost associated with chargebacks cost.
Crypto payment processors are definitely levelling up and enabling brands an exposure to a trillion dollars plus market cap. Brands can leverage this exposure to reach consumers globally with less prerequisites and associated costs. Blockchain technology is expected to lead many changes, with cryptocurrency at the lead when it comes to the e-commerce payment landscape.