Benefits of stablecoins for businesses

Payments 24 hours a day

Payments made on the blockchain are not limited by holidays, business hours, geographic boundaries or interference from outside parties, meaning all transactions happen almost immediately, compared to traditional bank transfers that take between one and three days to complete.

Cheaper transactions

Regular fiat currency transactions can be very expensive, depending on the amount of money you are about to spend. They are usually around 3% of the total value. But stablecoin and cryptocurrency transactions in particular offer much lower transaction fees, due to the decentralized peer-to-peer transfer process.

Attract new customers

Promoting your company as a modern and sustainably developing business is important to reach new and younger audiences, who are much more aware of current technological advances and are much more likely to spend their assets on your products and services.

Overcoming regulations

If you operate internationally, you will find it more difficult to take into account the different restrictions and laws related to financial transactions. Stablecoins make it easier for any merchant to accept payments from all over the world without having to deal with additional tax regulations. However, we encourage all business owners to conduct their financial affairs in accordance with local legislations.

What benefits would your customers get?

For consumers, getting up to type their credit or debit card number into a website or risking privacy to save the information will be a hassle of the past when shopping online. With digital assets, users seamlessly connect their wallets to their browsers and can instantly pay with available funds. Integrating payment options with digital assets will make shopping a seamless extension of the online shopping experience.

Not only does it allow people to make practical use of their stablecoins, but it also allows them to avoid additional taxes when purchasing from foreign markets. All those who hold stablecoins will be able to purchase desired services and products with greater consumer protection due to the decentralized nature of the blockchain and without spending extra on transaction fees.

What do you need to accept stablecoin payments?

There are two different ways to start accepting these types of assets. If you are not very familiar with how these finances should be handled, it is best to integrate a payment processor, which would take care of all transactions and even currency conversions. Finding a reliable payment gateway provider is essential to ensure successful payments and a higher level of convenience for all customers. Additionally, these providers offer customer support, which comes in handy when you experience issues.

But if you don’t want to rely on such a middleman, then you will need to create your own cryptocurrency wallet, which will hold all the assets you receive. That means it is your responsibility to keep track of incoming funds and their further use.

What to consider before accepting stablecoin payments?

Of course, regulations are something that every merchant needs to take into account before they start accepting stablecoins or any type of cryptocurrency as a viable form of payment. Some countries have much stricter policies on these types of financial transactions, while others have not yet managed to create special legislation on the treatment of cryptocurrencies as a whole.

The most important thing to keep in mind when deciding to adopt stablecoins as a payment option is to be very careful about choosing the stablecoins you want to receive. You should always consult with a cryptocurrency financial advisor to better understand the disadvantages of some stablecoins. For example, USDT has been going through some issues in recent years, due to the lack of certainty about the financial reserves Tether has to maintain its peg with the US dollar.

What does the future of stablecoins look like?

The potential advantages of stablecoins have attracted numerous industry players, such as JP Morgan (JPM Coin) and Visa, to join the system. JPM Coin was initially used by JP Morgan for internal transactions and in 2021, it operated alongside the 400-bank Liink payment network and enabled securities settlement across the bank’s customer base. In early 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 stated that transactions could be settled using USDC, with Crypto.com being the first company to test it.

Conclusion

Although digital money has been all the rage ever since it started gaining mainstream recognition, cryptocurrency holders are still unable to enjoy spending their assets as they would with fiat money. However, businesses around the world, especially online retailers, have had the courage to make it possible for people to purchase desired items and services with their cryptocurrencies.

Stablecoins deserve to gain as much popularity as any other well-known cryptocurrency, because they propose solutions to many of the problems of cryptocurrencies, such as volatility, but still maintain their benefits, thanks to the blockchain technology on which they exist.

It would be a no-brainer for merchants to upgrade and integrate new payment services, which would involve the use of stablecoins. The best part about this option is that even if you are unsure about this innovative payment practice, you can always stop it and keep the value of your funds.