Against the backdrop of the increasing spread of cryptocurrencies, their users have become a new category of clients for businesses. The ability to pay for goods and services using digital assets is being introduced not only by small local players, but also by technology giants like Amazon.
Together with Whitepay CEO Gleb Udovichenko, ForkLog figured out why people are increasingly choosing high-risk assets as a means of payment and what businesses get from integrating cryptocurrencies.
Digitalization of processes
The global economy is actively digitalizing. Banking services have moved to a smartphone; in the Diya application, Ukrainians can not only view documents, but also register FOP or get a home loan. At the same time, the National Bank is testing the e-hryvnia, and President Volodymyr Zelensky signed the law “On virtual assets”.
The widespread adoption of cryptocurrencies in Ukraine is the result of the fact that at some point they made it possible not only to increase their income, but also to understand investment processes. In addition, the transfer of part of the savings, for example, to stablecoins, will allow you not to worry that the bank will close along with deposits.
Most of the owners of cryptocurrencies do not just save money, but trade on exchanges, staking or DeFi lending. If they need to transfer digital assets to bank accounts, they face large fees and, in some cases, the traditional financial system prevents such transfers.
Therefore, a number of technological giants, such as Amazon, have provided an opportunity for users to pay with cryptocurrencies, realizing how quickly the potential of this payment method is growing.
Market Condition
The number of cryptocurrency transactions is increasing every year. Stablecoins were ahead of the largest payment systems in this indicator: USDT issuer Tether had $18.2 trillion against $14.1 trillion of processed Visa transactions and $7.7 trillion in the Mastercard network.
According to the report Chainalysis, emerging economies are more actively participating in the new financial sector. In 2022, Ukraine ranked third in the Global Cryptocurrency Adoption Index.
Blockchain technology is very popular with regulators: about 98 countries are developing CBDC. One of the leaders is China, which is actively testing the possibilities of the digital yuan.
More than 380 Ukrainian companies and charitable foundations have already integrated cryptocurrencies, including MebelOk, Stylus, CACTUS and Tabletochki. Their list is constantly growing as more entrepreneurs realize the benefits of integrating a payment gateway to accept digital assets.
Why do businesses need cryptocurrencies?
The integration of crypto payments into business can attract new users who do not want to spend time converting tokens into hryvnia. In addition, this is a good marketing ploy to increase brand awareness: cryptocurrencies can be used in programs to reward loyal customers by offering discounts on future purchases.
The next tangible business benefit is the low cost of transactions. Cryptocurrencies are decentralized, therefore, there are no intermediaries and additional fees. For comparison: the cost of most bitcoin transactions is up to 1% of the transfer amount, and the average transaction fee in traditional payment systems is from 1.5% to 3.5%.
At the same time, cryptocurrencies allow you to accept payments from customers from any country in the world where digital assets are allowed. Business owners do not have to worry about the exchange rates of national currencies and, in some cases, receive additional profit. For example, the USDT exchange rate can be more profitable than the hryvnia against the dollar.
How to start accepting cryptocurrency?
There are several solutions for accepting cryptocurrencies:
- POS-terminals for payment in a physical store, outwardly resembling devices for accepting bank cards;
- payment page on the site for accepting cryptocurrency online;
- payment gateway for WooCommerce.
Cryptoprocessing allows you to convert digital assets into hryvnia and vice versa, as well as accumulate it on electronic wallets. All information about balances, commissions, connected terminals and transaction history can be seen on the control panel in the personal account of the crypto processing service provider.
For example, the POS terminal from Whitepay is equipped with a display that displays key information and the current exchange rate. In total, more than 140 digital assets are available for payment.
To pay with cryptocurrency, the client must scan the QR code generated by the system using his e-wallet and transfer the required amount to the specified merchant address. The cost of goods or services is calculated at the current exchange rate. If the transfer is successful, the system generates a check with the hash of the transaction, which can be tracked.
Legal status of cryptocurrencies in Ukraine
In February 2022, the Verkhovna Rada adopted Law on Virtual Assets, which should bring the digital money market out of the shadow sector of the economy. Now the document is being changed taking into account the European regulations MiCA. The process of legalizing cryptocurrencies has not yet been completed, but their use is allowed in Ukraine.
At the same time, income received in digital assets must be declared, despite the absence of clear regulations. To do this, the cryptocurrency is converted into hryvnia and taxed depending on which group of taxpayers the business belongs to.
At the beginning of March 2023, cryptocurrency platforms announced a temporary suspension of operations through hryvnia bank cards. In a comment to ForkLog, Whitepay CEO Gleb Udovichenko said that most of the clients of their service were not affected by the restrictions.
“Whitepay has never worked with sanctioned companies and the gambling industry. Additionally, we are in dialogue with the NBU to create a new model of interaction between cryptocurrency and the hryvnia in the context of the legalization of crypto-operations in Ukraine,” he added.
Risks and Conclusions
The main thing to remember is that cryptocurrencies are volatile. In addition, it is worth considering the possibility of a reputational crisis of projects. These risks can be mitigated by converting received digital assets immediately into fiat. In general, the advantages outweigh the disadvantages.
Accepting crypto payments can be an additional way to take your business to the next level by reducing operating costs, increasing your customer base and competitiveness in the market. However, it is important to understand the legal landscape and comply with all applicable regulations.
To start accepting cryptocurrencies, a company must define its goals, study the legal aspects and potential risks, choose a payment gateway, and train staff to work with this technology. Since the crypto market is still developing and has certain risks, it is necessary to be prepared for possible challenges and changes in the future.
Found a mistake in the text? Select it and press CTRL+ENTER
ForkLog Newsletters: Keep your finger on the pulse of the bitcoin industry!
Against the backdrop of the increasing spread of cryptocurrencies, their users have become a new category of clients for businesses. The ability to pay for goods and services using digital assets is being introduced not only by small local players, but also by technology giants like Amazon.
Together with Whitepay CEO Gleb Udovichenko, ForkLog figured out why people are increasingly choosing high-risk assets as a means of payment and what businesses get from integrating cryptocurrencies.
Digitalization of processes
The global economy is actively digitalizing. Banking services have moved to a smartphone; in the Diya application, Ukrainians can not only view documents, but also register FOP or get a home loan. At the same time, the National Bank is testing the e-hryvnia, and President Volodymyr Zelensky signed the law “On virtual assets”.
The widespread adoption of cryptocurrencies in Ukraine is the result of the fact that at some point they made it possible not only to increase their income, but also to understand investment processes. In addition, the transfer of part of the savings, for example, to stablecoins, will allow you not to worry that the bank will close along with deposits.
Most of the owners of cryptocurrencies do not just save money, but trade on exchanges, staking or DeFi lending. If they need to transfer digital assets to bank accounts, they face large fees and, in some cases, the traditional financial system prevents such transfers.
Therefore, a number of technological giants, such as Amazon, have provided an opportunity for users to pay with cryptocurrencies, realizing how quickly the potential of this payment method is growing.
Market Condition
The number of cryptocurrency transactions is increasing every year. Stablecoins were ahead of the largest payment systems in this indicator: USDT issuer Tether had $18.2 trillion against $14.1 trillion of processed Visa transactions and $7.7 trillion in the Mastercard network.
According to the report Chainalysis, emerging economies are more actively participating in the new financial sector. In 2022, Ukraine ranked third in the Global Cryptocurrency Adoption Index.
Blockchain technology is very popular with regulators: about 98 countries are developing CBDC. One of the leaders is China, which is actively testing the possibilities of the digital yuan.
More than 380 Ukrainian companies and charitable foundations have already integrated cryptocurrencies, including MebelOk, Stylus, CACTUS and Tabletochki. Their list is constantly growing as more entrepreneurs realize the benefits of integrating a payment gateway to accept digital assets.
Why do businesses need cryptocurrencies?
The integration of crypto payments into business can attract new users who do not want to spend time converting tokens into hryvnia. In addition, this is a good marketing ploy to increase brand awareness: cryptocurrencies can be used in programs to reward loyal customers by offering discounts on future purchases.
The next tangible business benefit is the low cost of transactions. Cryptocurrencies are decentralized, therefore, there are no intermediaries and additional fees. For comparison: the cost of most bitcoin transactions is up to 1% of the transfer amount, and the average transaction fee in traditional payment systems is from 1.5% to 3.5%.
At the same time, cryptocurrencies allow you to accept payments from customers from any country in the world where digital assets are allowed. Business owners do not have to worry about the exchange rates of national currencies and, in some cases, receive additional profit. For example, the USDT exchange rate can be more profitable than the hryvnia against the dollar.
How to start accepting cryptocurrency?
There are several solutions for accepting cryptocurrencies:
- POS-terminals for payment in a physical store, outwardly resembling devices for accepting bank cards;
- payment page on the site for accepting cryptocurrency online;
- payment gateway for WooCommerce.
Cryptoprocessing allows you to convert digital assets into hryvnia and vice versa, as well as accumulate it on electronic wallets. All information about balances, commissions, connected terminals and transaction history can be seen on the control panel in the personal account of the crypto processing service provider.
For example, the POS terminal from Whitepay is equipped with a display that displays key information and the current exchange rate. In total, more than 140 digital assets are available for payment.
To pay with cryptocurrency, the client must scan the QR code generated by the system using his e-wallet and transfer the required amount to the specified merchant address. The cost of goods or services is calculated at the current exchange rate. If the transfer is successful, the system generates a check with the hash of the transaction, which can be tracked.
Legal status of cryptocurrencies in Ukraine
In February 2022, the Verkhovna Rada adopted Law on Virtual Assets, which should bring the digital money market out of the shadow sector of the economy. Now the document is being changed taking into account the European regulations MiCA. The process of legalizing cryptocurrencies has not yet been completed, but their use is allowed in Ukraine.
At the same time, income received in digital assets must be declared, despite the absence of clear regulations. To do this, the cryptocurrency is converted into hryvnia and taxed depending on which group of taxpayers the business belongs to.
At the beginning of March 2023, cryptocurrency platforms announced a temporary suspension of operations through hryvnia bank cards. In a comment to ForkLog, Whitepay CEO Gleb Udovichenko said that most of the clients of their service were not affected by the restrictions.
“Whitepay has never worked with sanctioned companies and the gambling industry. Additionally, we are in dialogue with the NBU to create a new model of interaction between cryptocurrency and the hryvnia in the context of the legalization of crypto-operations in Ukraine,” he added.
Risks and Conclusions
The main thing to remember is that cryptocurrencies are volatile. In addition, it is worth considering the possibility of a reputational crisis of projects. These risks can be mitigated by converting received digital assets immediately into fiat. In general, the advantages outweigh the disadvantages.
Accepting crypto payments can be an additional way to take your business to the next level by reducing operating costs, increasing your customer base and competitiveness in the market. However, it is important to understand the legal landscape and comply with all applicable regulations.
To start accepting cryptocurrencies, a company must define its goals, study the legal aspects and potential risks, choose a payment gateway, and train staff to work with this technology. Since the crypto market is still developing and has certain risks, it is necessary to be prepared for possible challenges and changes in the future.
Found a mistake in the text? Select it and press CTRL+ENTER
ForkLog Newsletters: Keep your finger on the pulse of the bitcoin industry!
