In this Article
Merchant Acquiring and Payment Processes Explained
The concept of merchant acquiring may simply be known as a variety of services used to execute and process payments for a company or merchant. It is typically conducted via means of credit or debit cards.
The acquirer has the duty to receive card transaction details from the terminal of a merchant. Then, they forward them to the card issuer for authorisation to complete the transaction process.
How Cryptocurrencies Have Changed Merchant Acquiring
With the novel introduction of cryptocurrency into the economy, it is undeniable that several aspects of payment processing will have to incorporate digital currency to accommodate people’s needs. Merchant acquirers are no exception to this. In fact, in January 2014 Overstock.com was the first major online retailer to adopt and accept payments in Bitcoin in the U.S.A. Just a couple of months later, the same company was, again, the first to accommodate bitcoin globally.
Ever since then, digital currencies have undoubtedly entered the mainstream, featuring consistent and global use, whereby customers can pay for practically anything with them. “As long as you can get on the internet, you can order and pay in bitcoin,” – Patrick Byrne, founder and CEO of Overstock.
Merchants Accepting Digital Currency as form of Payment Process
There is an ever-expanding number of large companies which accept payments in cryptocurrency. Microsoft, PayPal, Starbucks and Etsy are just some examples of this, but there are countless other big players that are either considering the acceptance of payment in crypto, are in the process of doing so, or that are already doing it.
As reported by a survey from Deloitte, it can be seen that the majority of merchants believe that customer interest in digital currencies will increase significantly in just one year with other reports saying that approximately 75% of merchants have reported consideration and planning to accept payments in stablecoin and cryptocurrency. This data reinforces the idea that the popularity of digital currency is rising and will continue to do so as technology continues to progress, along with the confidence of merchants in the adoption of digital currency.
The Benefits of Paying Through Digital Currency
The acceptance of cryptocurrency as a form of payment provides several benefits to companies and customers alike. More sales can be generated through accommodation of a wider spectrum of payment types. Additionally, online transactions are made faster and easier. International selling is highly simplified due to ease in currency conversion, and payment processing fees are relatively low in comparison with other payment types. All these aspects arguably help facilitate the most sophisticated and simple version of the online transaction process as we know it.
Continued education, along with a wider perspective on the topic, will facilitate regulatory oversight. In turn, that can eventually develop into a wider mainstream incorporation of payments in digital currency. The trend indicating that digital currencies will be used for everyday payments is undeniably upward and is widely expected to continue to markedly rise.
Merchant acquirers are thus bridging the gap in response to the growing demand from retail shops to accept crypto. Subsequently, merchant acquirers are facilitating the payment process by applying the technology required to process crypto payments. This inevitably results in a domino effect: more and more merchants and users will start adopting crypto payments as more and more demand is created for it (both from the merchants and users themselves).
How Can We Help?
Are you also interested in taking this leap? Do you need help getting set up in order to start accepting cryptocurrencies as a means of payment? If so, get in touch with us for specialised assistance.
More about MK Fintech Partners Ltd.
Michael Kyprianou Fintech Partners Ltd is a Maltese licensed VFA Agent (virtual financial assets agent). It comprises a team of dedicated experts who provide services such as advisory, licensing and registrations of activities related to Fintech, Crypto, Blockchain, Investment, company incorporations and banking. and other ancillary services. MK Fintech Partners forms part of the Michael Kyprianou Group, a top tier international legal and advisory firm. It has established an enviable reputation as a broad-based legal practice over the years. Mainly by keeping at heart its principle to always exceed its clients’ expectations. MK has grown to become one of the largest law firms in Cyprus with offices in Nicosia, Limassol and Paphos. The MK Group’s international presence also includes fully-fledged offices in Greece (Athens and Thessaloniki), Malta (Birkirkara), Ukraine (Kiev), the United Arab Emirates (Dubai), United Kingdom (London), Israel (Tel Aviv), and Germany (Frankfurt).
The content of this article is valid as at the date of its first publication. It intendeds to provide a general guide to the subject matter and does not constitute legal advice. We recommend that you seek professional advice on a specific matter before acting on any information provided. For further information, contact us at MK Fintech Partners via email at email@example.com or by telephone +356 2016 1010.