While cryptocurrency as a method of payment hasn’t achieved mainstream status yet, some renowned companies are already accepting cryptocurrencies such as Microsoft, OKCupid, Virgin, Newegg, and Galactic.
More than 13,000 stores worldwide welcome cryptocurrencies as a payment method. So what’s behind all this buzz? Let’s look at a few reasons behind the growing popularity of crypto payments:
1. Limited Sensitive Data
Banks, retailers, and not to mention service providers, require a lot of personal data from customers. While it’s essential for their processes, all customers may not feel at ease sharing so much. After all, the more information you share (keep), the higher the risks – it’s impossible to maintain privacy when using fiat currency and dealing with traditional financial institutions.
Crypto payments provide a great alternative as they limit the amount of data needed for transactions to mere numbers also called crypto wallet keys, and transaction IDs which confirm a transaction took place between wallets.
A crypto payment processor acts as a third party and usually requires your name and shipping address (in the case of physical goods), but all your other information remains private as long as you transact solely using cryptocurrencies.
2. Secure Mobile Payments
The ability to use a smartphone instead of a credit or debit card to make payments have become all the rage. Doing so has never been easier thanks to services like Apple Pay, PayPal, PayPass, and payWave. Yet, security and privacy issues – which are similar to fiat-based transactions – arise due to too much data being stored centrally.
Most payment processors need your credit card information, and these details are then not only available online but also on our mobile devices which we carry with us everywhere we go. Crypto payments, on the other hand, are a much safer mobile payment because of their virtual and decentralized nature.
3. Borderless Means of Exchange
Crypto payments pave the way to make cost-effective transactions across the globe. Not only is it instantaneous, but also allows you to avoid high fees on international cash transfers. As such, cryptocurrencies provide an alternative solution for paying bills, safe-keeping funds, conducting business, earning income, etc.
If you’re traveling to another country, they also allow for an emergency source of funds that can be accessed remotely without any identification proof, bank account, wire transfer, or credit cards.
4. Less Associated Fees
Back in the day, when cash was the only medium of transaction, financial institutions used to offer generous incentives to people who put cold-hard money into their coffers. Today, however, bank accounts and even credit and debit cards have associated fees – money that comes out of your pocket and provides no benefit whatsoever!
In contrast, crypto payment gateways, like CoinPayments for example, charge anywhere between 0.5 % and 1% per transaction. Moreover, a crypto account in the form of a wallet is completely free unless you decide to invest in hardware wallets. In this case, using crypto as money will cost you nothing besides the transaction fee.
PureVPN & Cryptocurrencies
At PureVPN, the privacy and ease of our users will always be one of our foremost priorities. For this reason, we’re happy to announce that we have collaborated with Binance to bring you another secure payment option.
— CZ Binance (@cz_binance) April 5, 2019
With the addition of Binance Coin (BNB), users can pay for a VPN subscription without having to provide their payment information, which in turn, can be traced back to them. Also, they’ll be able to enjoy a flat 10% discount on their purchase – regardless of the chosen subscription plan!
Both in-store and online shopping is going digital but raises fears surrounding security and privacy. Therefore, it wouldn’t come as a surprise if the trend of crypto payments only increases further in the future. Only time will tell, though!
Map Source: CoinMap