What Crypto Brings to the Table for Established Services
The growth of cryptocurrencies in recent years has seen more established industries and services begin to take notice of the benefits they bring. Recent political backing has seen moves to improve regulatory frameworks around the world, increasing leading cryptocurrency values and encouraging more businesses to explore their potential.
Online industries and services considering a shift towards crypto acceptance can use the gambling industry as a case study, having been one of the first to embrace decentralised currencies. Gambling expert Andjelija Blagojevic discusses the advantages that consumers enjoy when searching for crypto casinos online, with players enjoying easier access, faster transactions, enhanced security, and greater transparency.
Service providers and operators also enjoy massive benefits when using cryptocurrencies as an alternative to traditional payment methods.
Greater Efficiency
One of the greatest benefits of using decentralised currencies is the ability to bypass intermediaries and streamline operations. Traditional payment methods typically involve banks and other financial institutions that can impact how quickly payments are made and received, and can often incur additional charges for carrying out their services.
Cryptocurrencies offer a peer-to-peer payment system that bypasses the need for time-consuming middlemen and helps to reduce the costs associated with payment processing. Transactions can be completed in minutes, and also help consumers and services avoid costly currency exchange rates and charges when carrying out international transactions.
This can be a massive boost to the liquidity of businesses and is also attractive to customers who don’t want to wait or pay above the odds for products and services.
Security and Transparency
Online security is a major concern for modern businesses that have to offer their customers protection against cybercriminals and ensure they can store sensitive data. Cryptocurrencies are one of the most secure ways to carry out online transactions, with blockchain technology offering immutability through its mechanics.
Transactions are recorded on the blockchain, and the time and effort that would be involved in trying to hack these systems, with little chance of success, works as an excellent deterrent to criminals. Transparency is also improved by transactions being recorded on the blockchain, with independent auditors able to check how businesses operate.
Consumers don’t need to provide as much information to operators when using cryptocurrencies, including sensitive banking information, helping to keep their information offline.
Accessibility
The internet has made the world a smaller place, making it easier for people from other countries to communicate and carry out transactions. However, different rules and regulations in these areas can sometimes prohibit what actions can be taken.
Cryptocurrencies help to break down these barriers by offering a secure way to pay for services while retaining a high level of anonymity. The gambling industry is an excellent example of how consumers living in countries or regions where online gambling is prohibited can still access services.
Innovation
The innovative nature of digital currencies is something that fiat currencies can’t match. While there are already well-established cryptocurrencies on the market, new projects are constantly being launched, offering unique use cases for consumers and businesses.
The emergence of smart contacts that automate processes and reduce administrative overheads helps services to save money. Lower running costs allow these services to offer a more competitively priced product to consumers. DeFi (Decentralised Finance) allows businesses to explore financial services outside traditional routes, with lending, investing, and borrowing all possibilities, while the tokenisation of assets also helps with liquidity.
Customer Engagement
Cryptocurrencies are able to facilitate enhanced customer engagement and loyalty to brands, with the ability to create crypto-based loyalty programs and points that offer real-world utility and value. The automation of these systems helps brands and customers benefit from continued patronage.
Another way that crypto can improve customer loyalty and engagement is by offering additional payment methods. The best online retailers and service providers will offer a variety of payment methods to suit their users. While many still like to use traditional card payments and bank transfers, others enjoy the convenience of systems like Apple Pay and PayPal that simplify transactions that can be carried out with a few clicks.
Crypto payments are on the rise and appeal to forward-thinking, tech-savvy consumers, and being able to offer this as a payment method reflects well on the business. It can also help to facilitate micropayments, where smaller and regular payments are more common.
Enhanced Compliance
While being able to reach consumers all over the world increases a brand or service’s reach, it can also result in regulatory issues with different countries and regions having different laws.
The transparency of cryptocurrency transactions helps to meet regulatory and reporting requirements and simplifies the auditing process. Smart contracts can also be implemented to enforce KYC (Know Your Customer) and AML (Anti-Money Laundering) rules. The automation of these processes makes compliance easier for large services that carry out thousands of transactions every year.
