In a time when consumers have become accustomed to instant gratification, it should be no surprise that speed is the number one requirement for users looking to make payments. As financial institutions work to simplify users’ experiences through various tools and offerings, the most critical goal is the pace and efficiency of the transactions themselves.
Banks have traditionally held this responsibility, but in recent times the emergence of fintech has provided an added layer to the range of options available. By incorporating advanced technologies, platforms like PayPal and Venmo have brought much-needed innovation to the financial landscape.
The recent adoption of cryptocurrencies into the mainstream has also played a hand in increasing consumers’ experiences when it comes to holding and transacting value. By providing a faster and cheaper alternative to international payments, cryptocurrencies provide businesses and individuals an opportunity to bypass the current flaws of the traditional banking system.
The Best Cryptocurrencies For Payments
Since Bitcoin was launched in 2009 a large number of cryptocurrencies have entered the market, each bringing new value or innovation to the crypto space. While there are a significant number of platforms providing a space for developers to create decentralized apps (dapps) and smart contracts, there are even more that are centered around payments.
Many cryptocurrencies have used the same open source coding as Bitcoin to provide new payment solutions, adding new tweaks. For instance, Litecoin and Bitcoin Cash were both created from hard forking the Bitcoin network, however, Bitcoin Cash has proven to be cheaper while Litecoin transactions are faster.
Below we explore several of the top cryptocurrency options when it comes to fast and cheap transactions:
The cult favorite offers low transaction fees (under $0.50 a transaction) and fast settlements. The network can handle 30 transactions per second requiring one minute for confirmations.
Launched in 2015, Stellar is centered around helping financial institutions transact money quickly and cost-effectively. The network can process 83.26 transactions per second, charging 0.00001 XLM.
The Nano payment system provides users with instant transactions (0.14 seconds) and zero transaction fees. While operating as a Proof of Work network, Nano is considered to be one of the most eco-friendly cryptocurrencies out there.
Cardano offers users the chance to quickly and cheaply make digital payments, charging 0.16 - 0.17 ADA per transaction. The network can handle 250 transactions per second.
Another digital payments network to partner with large financial institutions, Ripple offers users transaction fees comparable to $0.00265 and transaction confirmation times of 3 - 5 seconds.
The Benefits of Using Cryptocurrencies
With crypto adoption at the highest its ever been, there are a lot of businesses looking to incorporate crypto into their payment options. Below we highlight three of the main points addressed in a report released by Deloitte, titled “The rise of using cryptocurrency in business”.
Attract New Customers
Offering payments in cryptocurrencies opens your business up to a new target market. A study recently observed that “40% of customers who pay with crypto are new customers of the company, and their purchase amounts are twice those of credit card users.”
Helps to Establish the Company in the Emerging Industry
By accepting cryptocurrencies, the business will have an advantage over other businesses that might seek to do this further down the line. The company will also have the infrastructure ready should CBDCs (central bank digital currencies) become widely used.
Deflationary Currency Options
Working with cryptocurrencies provides the business with the opportunity to hold funds in a deflationary currency. While volatility in the market is a short-term concern, cryptocurrencies have proven to appreciate with time, unlike their fiat counterparts.
The Need For Speed
With plenty of cryptocurrency platforms providing fast and cheap transaction options, there is another solution. Payment apps focused on cryptocurrencies are emerging, with a strong emphasis on streamlining the payments and thereby adoption of digital currencies.
Looking at Oobit Pay as an example, the app allows users to instantly send cryptocurrencies to anyone worldwide paying zero transaction fees. Users simply require the recipient’s mobile number, and after receiving a notification will receive the funds or an SMS to let them know the funds are waiting for them.
Oobit Pay provides the perfect solution for businesses too, allowing transactions to be instantly settled before the customer makes off with the goods.
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