Think crypto payments are just a "nice-to-have"? Read on, and you might just change your mind.
Author: Leo Vu - CEO & Co-Founder of Fizen.io.
We rely on cards and cash because we have no better alternatives
Having lived in Singapore, France, the USA, Japan, Korea, and traveled to numerous other countries, I know firsthand the hassles of currency management as an expat and tourist. This frustration inspired me to build Fizen.io, a solution to make transactions faster, cheaper, safer, and more convenient through blockchain technology.
Many people still believe that cash and card payments are sufficient. However, after extensive research and personal experience, I can confidently say that crypto payments offer significant benefits.
In April 2024, I traveled from Vietnam to Dubai for the Token2049 conference. Like any traveler, before the trip, I needed local currency, so I exchanged 11,000 AED (Dirhams), costing me 74,800,000 VND (Vietnamese Dong), an exchange rate of 6,800 VND per AED. Additionally, during the trip, I used my Visa Debit card (issued by a Vietnamese bank) for various purchases, keeping all receipts. The total spent in AED was 8,356.27, and my bank charged 60,167,127 VND, translating to an exchange rate of 7,200.24 VND per AED.
This means using my card costs an extra 5.89% due to various fees and a high cross-border currency exchange rate. Cross-border card payments involve numerous intermediaries, each adding a small fee, ultimately inflating the cost for consumers.
Merchants accepting card payments also face fees ranging from 1.5% to 4.0%, costs they often pass on to customers.
When I returned to Vietnam after a month and checked, the exchange rate for AED/VND had not changed. This means that the 5.89% is entirely due to intermediaries' charges, not fluctuations in the exchange rate.
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Crypto payments can save you significantly
In an ideal world where many people own crypto and merchants also want to accept crypto payments, transaction fees will be optimized for all parties. Stablecoins like USDT are truly useful because they are widely accepted, and their value does not fluctuate. A crypto payment transaction is made directly from buyer to seller without involving intermediaries. A transaction on a blockchain like BNB Smart Chain costs just 0.00003 BNB or roughly $0.019 most of the time during my trip. Many other chains offer even lower fees. For merchants using a crypto payment gateway like Fizen Pay to manage the payments, the fee is only 0.5%.
Imagine the savings for both merchants and consumers. Merchants can lower prices, offer cashback, or provide reward points, all while enjoying faster and more secure transactions. Consumers save on fees and enjoy seamless global payments.
Crypto payments aren't just a novelty—they're a practical, efficient, and cost-saving alternative to traditional payment methods. The future of money is here, and it's on the blockchain.
It is a huge financial savings. The total amount you could save is up to 9%! Let's say you spend $100,000 using crypto instead of a card—you would save $9,000!
There are many more advantages of crypto payments over cash or cards.
CASH:
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Inconvenience: You have to travel to a currency exchange shop. Many shops only deal in major currencies like USD, Euro, and Yen. This means you might need to find a smaller shop to exchange AED, or exchange USD first and then convert USD to AED in Dubai, incurring fees twice.
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Safety: Cash is cumbersome and unsafe to carry, especially in large amounts.
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Management: Handling change and converting leftover currency back after your trip is a hassle.
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Increasingly Less Popular: Many merchants no longer want to accept cash payments due to concerns about counterfeit money, the inconvenience of making changes for large denominations, and hygiene issues.
CARD:
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High Fees: As shown, card payments come with high fees.
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Security Risks: It's not difficult for someone to steal your card number.
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Privacy: Card payments offer limited privacy.
Crypto payments eliminate these issues, offering a seamless, secure, and cost-effective alternative. By embracing crypto, you're not just adopting a trend—you're stepping into the future of finance.
We are in the early stages of the development of crypto payments. The number of people owning crypto is around 560+ million (2023) and is expected to reach 1 billion by 2030. Fizen.io strives to apply new technology to improve speed, fees, and convenience in cross-border transactions.
Crypto Payments Set to Get Traction - Key to Crypto Adoption
Three primary factors contribute to the fast adoption of crypto payments. Indeed, they are simpler, risk-free, and essential for users.
You can easily buy things at shopping malls or food at your favorite restaurants by scanning QR codes to make payments. Moreover, unlike banks, crypto payments are not limited to a geographical location. They are risk-free and provide an avenue to spend your money.
The Fizen Super App has made it easy for travelers, shoppers, and digital nomads to make crypto payments. You can use crypto to pay for online purchases, utility bills, phone top-ups, gift cards, eSIMs, hotels, and airlines.
Crypto payments are becoming essential, as 65% of people in a reliable survey confirmed their interest in using them. What's fascinating is that countries, large organizations, and companies are interested in crypto. You wouldn't want to be left out.
Apple Opens NFC Payment Chip for Bitcoin Payments
One of the biggest tech giants in the world, Apple, is aware of the potential of crypto payments. Hence, their latest integration of NFC Payment Chip to third parties makes Crypto payments possible with "Tap to Pay." With over 2.2 billion iPhone users worldwide, it guarantees massive traction for crypto payments.
Dubai and Russia Allow Crypto Payments
World powers like Dubai and Russia recognize the benefits of crypto payments. Dubai now allows salaries to be paid in Bitcoin and other cryptocurrencies. Even Russia is loosening up its tight regulations on cryptocurrencies. Due to the lack of geographical limitations, Russia will allow crypto payments and mining from September 1st, 2024.
Conclusion - Crypto Payments Are A Necessity
Crypto payments are now a necessity. Individuals need them in their daily lives to buy things online and offline. Due to the lack of geographical limitations, countries and large organizations are integrating crypto payments for faster remittances. No one should be left out of this innovation, and it even gets better with the Fizen Super App. Operating in over 178 countries, the Fizen Super App provides an ideal environment to spend crypto!
Crypto payments are a necessity
- Download Fizen Super App at: https://fizen.io/download
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