Long gone are the days when we used cash to pay for goods and services. Today, we’re living in the era of payments made with digital money. This article explores why paying invoices with crypto is a good idea
Payments have gone through a revolution in the last decade. From technologies like blockchain to FinTech, AI, and cryptocurrencies, the world of international payments has developed faster than ever, changing forever.
After more than a decade of rapid change to common shopping and payment practices, customers and businesses seem to be more curious about emerging payment methods. In fact, a new report suggests that 40% of consumers from the Americas, Asia, the Middle East, and Africa report planning to use their digital assets to make purchases in the next year.
The same report found that Millennials are the ones more likely to be interested in making payments with crypto. 77% of Millennials claimed that they want to learn more about how cryptocurrencies work, and 75% of them said they would be prepared to start using digital coins for payments if they understood them better.
Now, one may wonder why the sudden rise in interest related to crypto payments and to find out who accepts bitcoin as payment. One reason is that many big brands have already started allowing customers to use their digital assets to pay for goods and services, and since they accept crypto payments through website, they are normalizing crypto payments. Another strong reason is the fact that paying with crypto has plenty of advantages over paying with regular money. Consumers can make faster, cheaper, and secure payments worldwide using crypto.
If you, too, are searching for ways to use your cryptocurrency in the real world, keep reading below to learn why you should pay your invoices with crypto!
Give practical, everyday use to your digital money
Truth be told, your cryptocurrencies are your own property. As long as you know the password/ passphrase of your digital wallet, the crypto coins inside there are yours to use and manage. And, while managing crypto used to mean buying, holding, and selling these coins when they appreciate, there is one more option available today: give your digital money a practical everyday use by paying your bills.
With the number of companies that accept bitcoin payments or payments with other digital coins on the rise, you have more opportunities to use your digital money in the real world as well by paying for specific services and goods. This is a clear sign that the world of crypto has entered a phase of maturity where crypto holders have unlimited practical options to use their digital money.
Crypto payments are conducted on a peer-to-peer basis
Another significant benefit of paying your invoices with crypto instead of regular money is the fact that crypto transactions are conducted on a peer-to-peer basis. This is in contrast to fiat money that you put in a bank account to make payments. When you deposit money in a regular bank account, you basically become a creditor of the bank, meaning that the bank manages your money on your behalf. Thus, the bank manages the transactions you carry out as an intermediary between you and a third party who you are paying. This means that your transactions need approval from the bank who is an external source of authority.
The story is different with crypto payments. A third party does not manage your transactions, but you can instead send and receive payments to or from anybody on the network around the world.
Cheap and instant payments worldwide
One of the main reasons why crypto payments have grown in popularity since their adoption is related to the fact that transaction fees for international payments are significantly lower than the fees of regular payments. Another reason is related to the speed of these payments.
Back in the day, international payments used to involve huge fees, exchange costs and would take several days for payments to reach their receivers. Today, things are a lot different with payments made with crypto.
Since crypto transactions have no intermediary institutions, the costs of transacting are generally significantly lower compared to those for bank transfers. Transactions are also instant since the inconvenience of typical authorization requirements and wait periods are eliminated. If the receivers require crypto, you can still make your payments using your regular money by using a fiat to crypto payment gateway tool and enjoy the same benefits.
Crypto transactions are pseudonymous
Anonymity is another vital benefit of crypto payments and transactions. Most online transactions require the sender to provide an array of information for identification. While the verification process is a layer of security that aims to prevent crime, it also means that an intermediary is in charge of the transaction, allowing the intermediary to control the provisioning of services to the sender and the receiver.
In contrast, crypto payments are pseudonymous, meaning that they are not entirely anonymous since the transactions can be identified through a blockchain address. However, crypto payments ensure a high level of privacy since they require personal data from neither the sender nor the receiver.
A high level of security
There’s a famous saying in the crypto sphere: “trust the code.” This is related to the integrity of transactions made with crypto as opposed to those made with regular money.
One of the characteristics of cryptocurrencies is that they are not physical money, meaning that thieves can’t palm it off the holder. Although hackers can steal a person’s digital coins if they hold the private keys for the wallet, with proper security, it is technically impossible to steal cryptocurrencies.
Transactions with crypto are not derived from an institution, such as a bank, but from a computer code of the specific cryptocurrency that you are using. That is why the crypto world trusts the code built with various security guarantees and better encryption.
Since a third party doesn’t manage crypto transactions, your invoice payments with crypto will be conducted between your address and the receiver’s address, ensuring greater security.