Welcome to the new era of crypto-commerce
The established financial system is broken. It's highly centralised, with power concentrated in a small number of hands, and with merchants and consumers forced to endure high fees, long settlement times, and outdated technologies and experiences.
But new technologies are showing the way towards a decentralised future - one in which merchants and consumers have complete control over their payments, and one in which businesses in every industry are able to get access to the financial infrastructure that they need in order to grow and thrive.
In this new paradigm, businesses from igaming to retail enjoy greater flexibility, lower costs, higher degrees of control, and access to entirely new markets.
Cross-border payments are prohibitive
Sending or receiving money across borders is expensive, difficult, and time-consuming.
Payment batching means that settlement can take days, especially when payments are initiated just before a weekend or public holiday. Inconsistent and inaccessible technology means that it is challenging to interface with existing payment systems, and manual approval is still a prerequisite in some situations.
These problems become much more significant when transacting in emerging markets. The lack of developed banking infrastructure, plus limited liquidity in exotic currencies, additional compliance challenges, and language barriers all combine to lock businesses out of these growing and important territories.
E-commerce is stuck in the dark ages
Digital retailers, meanwhile, are still forced to struggle with outdated payment methods, iniquitous treatment by legacy financial institutions, and skyrocketing costs.
Most merchants face a choice between a small number of highly centralised, extremely powerful payment processors, many of which are built on old, proprietary technology. It is difficult to interface with these processors' existing systems, while the experience for both merchant and end user is often sub-optimal.
The established payment processors are also increasingly risk-averse, creating a situation in which entire industries and verticals are locked out of the established financial system simply because their businesses are not understood by the legacy institutions.
And even when merchants do secure the services of a payment processor, they are forced to shoulder huge fees, long settlement times, and the significant risks associated with fraud and chargebacks.
Crypto is the solution
Thankfully, there is an answer. Cryptocurrencies are extremely close to achieving mainstream adoption, and crypto-commerce is ushering in a new paradigm for both merchants and customers.
The last couple of years have seen a series of major announcements signalling the degree to which crypto-commerce is being embraced by established players. In 2020 PayPal announced that it would allow users to buy, sell, and pay with crypto through its platform; in 2021 Visa became the first major payments network to settle transactions in USDC; thousands of Bitcoin ATMs are popping up worldwide; and it is now common for employees of forward-thinking companies (including VC giants such as Sequoia) to have the option to receive part of their salary in Bitcoin.
The PayPal move is possibly the most important of these, as it is representative of a widespread shift in consumer behaviour. Average digital consumers are increasingly happy to pay for their goods and services in crypto - in fact, many of them now demand the option to do so. From iGaming to forex, crypto is the obvious choice - especially for customers and merchants operating in restricted currency markets.
Decentralisation is the future of commerce, and the foundation of the new digital economy. It solves the most significant problems faced by merchants dealing with cross-border payments and general online commerce. With a partner such as PayPerform your online business can enter the new digital economy, and secure competitive advantages immediately.
So how can crypto-commerce specifically benefit your business?
1. Enter new markets quickly
Addressing new markets is quicker, simpler, and less expensive for businesses that use decentralised payment systems. Crypto offers an intuitive way into emerging markets and those without developed financial infrastructure, and eliminates concerns such as local currency liquidity. Incorporating crypto payment methods and digital wallets also enables online businesses to attract the growing customer segment that wishes to transact either primarily or entirely in cryptocurrencies.
2. Cut your costs
Traditional payment processing fees are extortionate and rising. The Mastercard-Visa duopoly has led to skyrocketing charges for merchants, and these are set to increase even further. Merchants are faced with the choice of absorbing these rising costs or passing them on to customers - neither of which is a good option in an extremely competitive digital economy.
By contrast, platforms like PayPerform offer extremely competitive fee structures, along with the flexibility for merchants to choose the type of crypto integration that works best for them and their customers.
3. Transact instantly
Batching is a small business killer. Cashflow is the primary consideration for many small and growth-stage e-commerce ventures, and the long settlement times imposed by legacy payment processors present a significant challenge. In the crypto-commerce paradigm, however, transactions are settled in near-real-time, giving merchants certainty over their cashflow and customers access to the best possible experience.
4. Eliminate chargebacks
Digital merchants are well-acquainted with the serious risks of fraud and chargebacks associated with traditional card payment processing. By contrast, once a crypto transaction has been settled, it is completely irreversible without the mutual consent of both merchant and customer. Once a transaction has been completed, merchants have absolute certainty that the money is theirs.
5. Control your own treasury
Finally, innovative payment platforms such as Orbital understand that online businesses want flexibility. While legacy processors lock you into specific ecosystems, Orbital enables merchants to transact in whatever currency they wish (whether fiat or crypto), and to receive, hold, pay, and convert digital assets 24/7. Traditional payment processors are blockers; Orbital is an enabler.
The new era of crypto-commerce is here, and the promise it holds for both digital businesses and consumers is vast. If you want a flexible, cost-effective, industry-agnostic partner for both e-commerce and cross-border payments, get in touch with Orbital today.