Monat: Januar 2023

Cryptocurrencies have been around for more than a decade, yet they still haven’t become a mainstream payment option. Advocates of cryptocurrency tout its advantages, such as its decentralization and rapid transaction speed, while detractors point to its volatility and lack of regulation. 

As much as crypto has grown, one factor that may be preventing cryptocurrencies from becoming a common payment option is attitude: both businesses and consumers are reluctant to embrace this new payment method. Despite its potential, many people still view cryptocurrencies with skepticism and fear, and this attitude is standing in the way of crypto becoming a mainstream payment option. 

To truly make crypto a common payment option, attitudes must shift. People must recognize the potential of crypto and become comfortable with making transactions with it. 

Let’s take a look at why this is, and how it can be solved. 

Attitude is everything

To make cryptocurrency a mainstream payment option, people must change the way they think about it. 

Cryptocurrency has the potential to transform the world and the economy, but people must recognize this. They must get over the fear of the unknown and embrace the advantages of this new payment method. If people are not willing to give cryptocurrency a chance, then it will not become a common payment option.

Businesses’ reluctance to accept cryptocurrency

One major barrier to cryptocurrency becoming a mainstream payment option is the hesitancy of businesses to accept it. Many companies, such as airlines, hotels and car rental agencies, accept multiple payment methods, but very few accept cryptocurrencies. 

Some businesses are unwilling to accept cryptocurrency due to the high volatility of the market. They worry that accepting Bitcoin or another cryptocurrency could lead to losses if the value of the cryptocurrency were to plunge during the transaction. 

In some cases, businesses may simply be unaware that they can accept cryptocurrency, or they may be unsure of how to accept and safely store it. This problem also discourages some consumers from making cryptocurrency investments.

Consumers’ reluctance to use cryptocurrency

People may also be hesitant to use cryptocurrency because they are unfamiliar with it or are worried about the security of the transaction. Consumers may not know how to use a cryptocurrency wallet or find it difficult and confusing to buy, sell or store cryptocurrency. They may also be worried about the security of cryptocurrency transactions, given the prevalence of cryptocurrency hacking and scams. 

Additionally, consumers may be concerned about the legitimacy of cryptocurrencies, given that many are unregulated. 

There has not been a lack of demand from investors and advocates over the past several years, as the market has grown exponentially. The problems lie in people’s mindset.

Cryptocurrency fuses a tangible real-world asset (cash) with the digital world, and this concerns some users who prefer to see their money in-hand or at least in-bank, backed by standard fiat systems.

We have witnessed the fusion of the digital world and reality, and young people have no issues with using AR in games. The rising popularity of live casino games compared to their fully-digital alternatives suggests that we inherently have a desire to see the digital and real worlds collide. These games incorporate benefits of digital gameplay – convenience, ease of access, speed – with the reality of a real-world roulette wheel or blackjack dealer.

While most online systems are thoroughly vetted, we inherently place more faith in these live-streamed casino games – we can see the tangible results! It’s this portion of the process we’re trying to move past – because digital is not inherently less trustworthy than tangible, whether in gambling, or finance.

In fact, online casinos and gambling on the internet have become far more popular recently, with people playing daily from all over the world. This is a strong indicator that people enjoy using their money in the digital space, whether that’s playing games or even shopping. 

The impetus is there, the desire is there, but how do we get things moving toward crypto being accepted widely? 

Steps needed to make crypto a mainstream payment option

First, businesses must accept cryptocurrencies as payment. This will likely occur gradually as previously hesitant business owners become more familiar with the process of accepting cryptocurrencies and see their customers’ willingness to use this option. In some areas, this has already begun. 

Next, consumers must be willing to use cryptocurrencies as payment. When businesses begin accepting cryptocurrencies, consumers will likely see this as an opportunity to save money by paying with crypto instead of another payment method.

These two things could help to balance out some of the volatility associated with cryptocurrency. 

Education on cryptocurrency

Lastly, people must be educated on cryptocurrencies. Most are at least slightly familiar with the concept of investing in Bitcoin, but maybe not a lot other than that. They need to understand the basics of what cryptocurrencies are, how they work and the advantages they offer. This also includes knowing about the various types of cryptocurrencies and how each one works. 

People must also be educated on how to safely store their cryptocurrency, including the importance of using a safe and secure wallet. 

Finally, people must be educated about how to use cryptocurrency for transactions, as well as the tax implications of using it. With this level of education, people will be more likely to make and accept cryptocurrency payments, and cryptocurrency will transition to become a mainstream payment option.

The post Is attitude stopping crypto from becoming a common payment option? appeared first on CoinJournal.

• There are changes in technology and cross-border payment systems
• As adoption grows, cryptocurrency and DeFi transactions are proving triumphant
• We list the three key trends of cross-border payments in 2023

Soon, international money transfers will work just like any other fintech product, including internet banking or embedded finances.

Needs relating to the efficacy of the finance sector are evolving in tandem with changes in consumer behavior. Because of this, business-to-business (B2B) financing is under even more pressure as suppliers and retailers shift toward more simplified processes.

However, international legislation controlling and safeguarding financial transactions add complexity to B2B deals, especially those requiring cross-border adaptability. The difficulties are immense, especially in such a dynamic and evolving field as finance, where the need for quick and flexible transactions is of the utmost importance.

Changes in technology and cross-border payment systems

Although it’s no easy task, technology and inventors are making progress to streamline this complex area. According to industry experts, the contemporary market is being driven by a large number of dynamic businesses. For them, the most intriguing innovations occurring in this field now are at the junction of embedded financing and public banking.

According to experts, it may be quite difficult for retailers to handle payments when operating on a global scale. If a business issues an invoice in a denomination other than the client’s, the client is typically subject to a foreign transaction fee and uncompetitive interest rates. Long settlement periods can delay delivering products and services to the consumer.

In addition, they state that improved communication and collaboration across fin-serve providers is the result of a deeper appreciation for, and more thorough incorporation of, cross-border transactions within online banking and embedded financing.

The elimination of swipe fees, long settling delays, and the possibility of credit fraud are all advantages of open banking transactions, which allow for the rapid transfer of funds from one bank to the other. SWIFT is being used to enable global open banking exchanges.

However, this is a costly and time-consuming procedure right now, therefore cross-border transaction fintechs require financial institutions and authorities throughout Europe to act swiftly to meet the need for more affordable global financing options.

How open banking paves the door for smooth cross-border payments?

Despite the difficulty of resolving these issues, integrated open banking and prediction model are allowing PSPs and retailers to get accessibility to the complete transactions environment via a specific point of integration. With the use of integrated financing, open banking systems like Yapily allow companies to accept local payments, execute low-cost foreign currency interchange, provide rapid reimbursements and chargebacks, and simplify bookkeeping.

Advantages include “enabling firms to spend more efforts on growing abroad while reducing their costs and time as a result of increased transparency into payment details, flexibility over the allocation and movement of cash, and lower expenses associated with receiving and transmitting cross-border payments.

Reasons why cryptocurrency and international DeFi transactions are triumphant

In the meanwhile, cryptocurrencies have become more popular in international transactions since they are not subject to the same stringent regulatory regulations as fiat currency. And in this approach cryptocurrency marketplaces like Bitcoin trader have played a vital role as a middleman. Cryptocurrency transactions conducted on the blockchain at present allow buyers and sellers to do business with a heightened degree of anonymity and independence from governmental intervention.

Even while DeFi is expected to become more ubiquitous in the future decade, many nations still do not permit crypto transactions, which limits its usefulness. With the crypto market mostly unscathed by outside forces, it has become a viable choice for international transactions. Crypto’s versatility means it is not as much influenced by nation or region-based financial landscapes. Cryptocurrencies, like Bitcoin, have value swings, but they are more resistant to environmental factors.

As readily movable assets that transcend national currency regulatory limitations, digital currencies have become more popular in the foreign transactions market amid widespread economic uncertainty.

While Europe’s economic woes continue, firms in regions seeing rapid development in e-commerce may enjoy the benefits of using worldwide online payments to expand their operations. Those looking to shop online without utilizing funds held in conventional bank accounts may find increasing support for alt-fi businesses as the number of retailers accepting these methods of payment grows.

China’s cross-border payments

China, the globe’s largest provider of products and commodities, has created its metrics to evaluate that assist commerce while also being mindful of anti-money laundering and safety protocols.

Fintech legislation in China may be broken down into two main categories. There are two major regulatory bodies in China: the PBoC and the CAC), respectively, which oversee issues related to information security and information confidentiality. As a general rule, China allows new regions to establish a marketplace and services with little interference from the government. Once the situation is understood, the regulator introduces rules that are consistent with the overarching goals of regulators everywhere.

The three trends of cross-border payments to watch in 2023

In 2023, the international payments industry will be shaken up by three major developments. To stay competitive, financial technology banks and businesses will need to provide businesses and suppliers with convenient, low-cost, and safe cross-border transaction solutions. However, to achieve this, they will be required to deal with:

• Different payment methodologies: These would comprise quicker, better efficient, and adaptable transactions that appeal to multiple exchange rates including cryptocurrencies. Kiat-Seng Lim says: “To compete effectively, organizations must use technology that facilitates quicker transactions, reduced rates, and improved visibility to render them proficient in the arena of cross-border payments.”

• Cutting-edge tech: The software and hardware landscape is shifting due to the prevalence of APIs and the rapid development of new technologies. More openness, efficiency, and visibility are needed in international financial transactions.

• Risk: As the sector becomes increasingly more digital, the hazards mount with regard to theft, financial fraud, and cyberattacks. To gain consumers’ confidence, service providers should use the most stringent security measures available.

Because it shores up weak spots, the procedure makes the company climate and the user’s experience more secure by improving things like macroeconomic stability, data protection, and confidentiality.

In conclusion

In 2023, the fintech industry will likely witness an increase in the number of agreements and collaborations formed by the many companies and organizations that provide innovative solutions. As a result, companies may offer their clients novel and interesting open banking usage cases, reduce unnecessary hassles, and open up fresh avenues for expansion.

The post How Fintech Activities Are Transformed By Effortless Cross-Border Payments? appeared first on CoinJournal.

• Understand how blockchain technology and cryptocurrencies like Bitcoin work and how they affect financial innovation.
• Consumer interest in crypto and blockchain, and the digital transactions revolution, are driving financial expansion.
• What are the benefits of using cryptocurrencies and how will these drive financial expansion in 2023.

Recent years have seen widespread media coverage of blockchain-based cryptocurrencies like Bitcoin, Ethereum, and Stellar, making it impossible to ignore their impact on the average person. How does the widespread use of cryptocurrencies and blockchain technology affect online businesses, if at all?

Understanding bitcoin, how it works with the public blockchain, and how these new technologies are expected to affect e-commerce businesses is important as the fight to make cryptos a viable alternative to traditional finance continues. 

In the same manner that online billing channels facilitated e-commerce, and that PayPal as well as other third-party billing distributors ventured in to offer substitute funding choices, the e-commerce sector should now consider the advent of virtual currency and the implications of accepting this mode of payment.

The blockchain is the open, decentralized database it contains that keeps track of all cryptocurrency activities. When e-commerce businesses use blockchains, they get a number of benefits, such as better data security, streamlined operations, and lower costs.

There has been a rise in the number of merchants accepting Bitcoin as payment for products and services as the cryptocurrency craze has spread. As this shift takes place, the significance of Bitcoin and the blockchain to the world of online trade cannot be denied. E-commerce companies may greatly benefit from foresight into the potential outcomes of this technology. 

Let’s start with some background on blockchain technology and cryptocurrency and how they could affect and be used by an online retailer.

Recognizing blockchain technology and cryptocurrencies

If you want to buy anything online, you could use cryptocurrency. Unlike government-issued money, the value of this commodity is based on the native blockchain. Due to the decentralized nature of cryptos and the fact that laws are gradually being implemented, the once wildly fluctuating cryptocurrency markets have become somewhat more stable.

A distributed online ledger equipped with robust encryption is used to protect business dealings conducted online. 

Most distributed ledger technologies (DLTs) employ blockchain, although there are others. Blockchain is an innovative technological framework, not a language or a program. It’s an immutable digital ledger that keeps track of all the money that changes hands in a certain area. Users can safely trade and keep virtual commodities like bitcoins. Payments done using cryptocurrencies are made practical and secure in this way.

Consumers’ increasing interest in cryptocurrencies 

Bitcoin may have been the initial cryptocurrency, but today there are more than 4,000 others you can buy. Many people now use the name “Bitcoin” interchangeably with “cryptocurrency” or “digital currency.”

Bitcoin’s limited supply is one of its main selling points. Bitcoin, like gold, is a scarce commodity. Many speculate that Nakamoto deliberately set out to create an inflation-proof digital currency with Bitcoin.

Cryptocurrencies like Bitcoin are not, therefore, the exclusive finite-supply option. The number of Litecoins, Stellar Lumens, and IOTA currencies in circulation is also finite.

Cryptocurrency is used by customers in every region of the globe, while its acceptance varies widely by region. This phenomenon is compatible with economies that rely heavily on mobile shopping yet have limited access to conventional banking infrastructure. It makes sense that e-commerce merchants that embrace cryptocurrencies as a means of payment may find success in expanding their reach into previously untapped markets.

Digital money transactions

More and more businesses are starting to accept bitcoin as payment as public confidence in cryptocurrencies grows.

When the Xbox online shop started accepting Bitcoin, Microsoft became one of the earliest major firms to do so. Overstock.com, one of the most well-known US e-commerce sites, now accepts cryptocurrencies.

Some of the earliest businesses ever to accept cryptocurrencies were based in Great Britain, and that includes Shopify, Etsy, and even the cosmetics brand Lush. Despite recently proposing the development of its unique proprietary currency, Amazon has yet to accept cryptos as payments.

Explaining the process of crypto payment processing to retailers 

However, despite its futuristic appearance, Bitcoin is very genuine and easy to adopt as a payment alternative for online merchants. It’s possible that Bitcoin would be added to the payment methods that most online stores already use.

It is now easy to anyone to buy Bitcoin, and for businesses and online stores, the easiest way to start taking cryptocurrency payments is through a bitcoin payment system.

Every item’s listed cost in fiat currency is automatically translated to its equivalent in cryptocurrency whenever a customer chooses cryptocurrency as their payment option. The transfer is then processed securely by a payment system in the same way that any other transaction would be, except that it is saved on the blockchain.

This implies that the record of the monetary exchange will exist in the ledger forever and can’t be changed. Merchants and customers alike might benefit from this if they wish to maintain track of transactions over the long haul without keeping paper receipts. 

Online merchants that want to accept cryptocurrency and blockchain payments will likely need to switch to a payment processor that supports these alternative monies. In addition, there are always options for buying cryptocurrency, such as the Bitcoin Era. When choosing a payment gateway, e-commerce retailers should check to see whether it is interoperable with the CMS they employ.

Perks of accepting cryptocurrencies

There are several benefits to allowing bitcoin payments in online stores. Here are the four most significant advantages:

A cryptocurrency transaction cannot be reversed.

Transactions made using cryptocurrencies are immune to refunds. Since refunds are costly (both financially and in terms of the risk they pose to a merchant’s account) and time-consuming (both to resolve and prevent), this is good news for online stores. There is no way to undo a payment after it has been processed since it will be recorded on the blockchain.

Minimal costs are attached to crypto transactions.

As unbelievable as it may seem, certain cryptocurrencies have very low processing costs. In terms of transaction costs, XLM is the most cost-effective cryptocurrency. There will be more customers willing to use your services once they know you accept cryptocurrencies.

People are looking for methods to spend the cryptocurrency they extracted or the income they made from trading in virtual money as its demand grows. Companies that accept cryptocurrency payments will benefit from this rapidly expanding industry.

Clients might be attracted to your business more easily if you accept cryptocurrency payments. The ability to pay with Bitcoin and other digital currencies has piqued the interest of many customers, who are more likely to patronize a store that accepts this payment method.

Final thoughts

The blockchain, as was previously said, is an immutable digital ledger that stores financial transactions in an immutable manner. Cryptocurrencies may be transferred and stored safely thanks to blockchain technology. Each successful payment triggers the publication of a new block on the blockchain.

The blockchain links records together to build a chain of transactions. A transaction on the blockchain is created whenever a client makes a cryptocurrency payment. The cryptographic information will be checked against a database to ensure it has never been used before. Since the network keeps track of each activity on the blockchain, the information stored there cannot be erased, changed, or damaged.

The post Financial expansion driven by cryptocurrency and blockchain adoption in 2023 appeared first on CoinJournal.