Benefits of Spending Crypto at Point of Sale | Hydrogen Blog
Benefits of Spending Crypto at the Point of Sale

Benefits of Spending Crypto at the Point of Sale

Investments and interest in crypto has grown exponentially over the years. The accessibility and universality of crypto is providing opportunities for novice investors to try out investing and learn more about the crypto and blockchain space.

But what happens when investors want to spend their funds? Traditionally, investors would have to convert their investments back to fiat currencies first. That’s why innovations such as spending crypto at the point of sale are great for both investors in crypto and merchants who offer this type of transaction.

What does it mean to spend crypto at point of sale?

Crypto point of sale refers to using cryptocurrency funds to buy goods or services, without having to convert crypto to fiat currency prior to the transaction. This is one of several methods to off-ramp from crypto, and can provide a quicker way to spend crypto funds than other off-ramping methods, which often take several days to be processed.

There are a variety of methods to accepting crypto payments, which differ from business to business. These can range from crypto debit cards to direct transfers or gateways.

A crypto debit card is perhaps the easiest way to complete a transaction using crypto. Where prices are quoted in fiat currency, an exchange between fiat and crypto is made in real time according to current currency rates, all with the convenience of a typical debit card. The majority of crypto credit cards partner with Mastercard and Visa, making these transactions quick, easy, and widely available.

There are also alternative PoS systems for crypto users or merchants who prefer not to use crypto debit cards. For example with a Point of Sale gateway, no card is needed and transactions can be made directly from a user’s crypto wallet.

Typically, the merchant will enter the amount to pay in fiat currency, the buyer will select the desired cryptocurrency, and the exchange will occur in real time with a QR code including either the buyer’s mobile phone or crypto wallet. This is possible both virtually and physically.

Companies such as Amazon accept crypto purchases at point of sale through third-party apps, such as Purse. It is Purse that processes the transaction, receiving the payment sent by the buyer who wants to spend using crypto.

What are the benefits of crypto point of sale?

Crypto point of sale provides a great off-ramping opportunity for investors of crypto. For many years, off-ramping to crypto has always required exchange into fiat currency, limiting crypto’s spending potential.

Where crypto enthusiasts wanted to spend their cryptocurrency, it was necessary to convert it first, often having to wait days for the exchange to be processed, and often at a worse rate than at the time it was requested. Crypto point of sale cuts out the middle step, allowing quick and direct spending through your cryptocurrency investments.

Spending directly with crypto also prevents the need for debit and credit cards, which can often carry high fees for card holders. And given the fact that crypto payments aren’t processed by a centralized location like credit cards, purchases with crypto can also provide added privacy and security to payments.

Moreover, the possibility to buy with crypto makes international online purchases easier. Given the universality of crypto, customers can buy international goods or services without the need to convert currency or pay conversion fees. In an increasingly globalized economy, crypto purchases provide the possibility to further access the entire world.

What is the impact of crypto point of sale on merchants?

Offering crypto payments at the point of sale can be a great business opportunity for any business, whether large or small. With the cryptocurrency market rapidly expanding, businesses that are ahead of the curve on technological developments can find themselves with access to a much larger market.

With the number of merchants who offer crypto purchases still at an early level, crypto investors are always on the look out for businesses where they can spend cryptocurrency directly. Offering the possibility to buy in cryptocurrency at the point of sale can help outcompete your competition and attract a loyal client base.

Furthermore, crypto payments often carry lower processing fees. While processing fees for credit and debit cards are typically around 2-3% for each transaction, crypto processing fees can often be lower than 1%. Crypto payments are also made in real time, meaning cash flows quicker than with credit or debit cards, which can take several days to be processed.

The possibility to buy in crypto can also stimulate international transactions for online businesses. Since people in any country can buy and sell in crypto, it opens up business to a much wider potential, without the need for complicated currency transfers or exchange rates.

On the other hand, the implementation of crypto point of sale can be expensive and complicated for merchants without the right expertise and guidance. It is important that businesses carry out the correct research to ensure that the implementation of crypto at point of sale is efficient and cost-effective.

How Hydrogen helps

With Hydrogen, we make crypto spending easy. Users can spend crypto at any merchant that accepts debit cards and the merchant doesn’t even have to accept crypto payments. They simply use the debit card in their wallet like they would any other purchase.

Best of all, this is all done through a no-code platform with all the third-party integrations bundled together, so you don’t have to sign multiple agreements and build several integrations.

If you would like to learn more, please contact us today.


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