At present, electronic payment has become an important link in the process of e-commerce. With the rapid growth of electronic payment business, its problems have also begun to emerge. Since Satoshi Nakamoto released the white paper in 2008, cryptocurrencies have entered the public eye. Today, cryptocurrencies are an integral part of the global financial market that cannot be ignored. It is true that cryptocurrencies can also give P2P payment a better future.
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Cryptocurrencies Safeguard Consumer Interests
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Protect Consumer Privacy
Fiat payment processing companies today use centralized databases to store data about transaction records. Whether consumers are purchasing online or offline, electronic cash payment has become a convenient, fast, and even preferential payment method compared to cash payment. However, these centralized databases are vulnerable to hacker attacks, and consumers' privacy will be at risk of leakage.
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Facilitate capital flow for truly borderless commerce
Currently, online commerce continues to accelerate cross-border transactions. While consumers enjoy the convenience brought by trade globalization, they also have to bear the high conversion costs between the legal currencies of various countries.
In the fiat world, currencies are primarily restricted to a single country or specific economic sector. For some consumers who have a large enough domestic market to choose from, there is no need to consider the issue of currency conversion; but for those who conduct cross-border transactions, they must exchange for the legal currency of the corresponding country before they can conduct transactions. This leads to an increase in transaction costs to a certain extent.
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Reduce "pending transaction" queues
Another problem consumers face when conducting transactions is the uncertainty of when merchants will process payments. Typically, merchants take anywhere from a day or two to several weeks to confirm payment information. Consumers can only wait for confirmation from the other party, which is undoubtedly a helpless move for consumers trying to balance their budgets.
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Cut high transaction fees
Businesses and offline brick-and-mortar stores accept payment of transaction fees through third-party debit and credit card processing companies, which can indeed provide convenience for both parties in the transaction. For online retailers, the heavy reliance on third-party payment platforms makes them need to pay high fees.
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More Market Alternatives
Another reason merchants need cryptocurrencies is the new competition it can bring. Traditional payment processing companies have a monopoly, and merchants don't have much choice, so there is no need for payment processing companies to lower fees. Today, there are thousands of cryptocurrencies around the world, all of which have the potential to become a means of payment. Both parties to the transaction can independently choose the most suitable transaction method to complete the payment, thereby reducing the monopoly caused by the payment processing platform.
It is worth mentioning that while more and more companies are accepting traditional debit cards and credit cards for payment, Bitcoin and other cryptocurrencies have also begun to be included in the payment category. In the fourth quarter of 2017, the number of retailers accepting Bitcoin reached 11,291, an increase of 30.3% from the end of the first quarter. Some large companies around the world, including fast food chain Subway, cross-border e-commerce shopify, online travel company Expedia, and e-commerce platform overstock, have accepted cryptocurrency payments.
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processing demand
price fluctuations
price fluctuations
Cryptocurrency prices fluctuate and it is difficult to maintain a state of balance. The price of the same amount of cryptocurrency fluctuates greatly in different time periods. After merchants accept cryptocurrency payment, the price may increase by 10% the next day. This is undoubtedly positive information for merchants. However, the opposite situation may also occur, resulting in a loss for the merchant. Due to the short-term price stability of fiat currencies in major countries, merchants and consumers may continue to use fiat currencies for payments.
safety
safety
While fiat payment processors and businesses have had security breaches leading to loss of user funds and other issues, these breaches have not been as prominent as cryptocurrencies.
As we have seen, even the most secure cryptocurrency wallets can be hacked. How to ensure the security of user assets is also the key to the healthy development of the cryptocurrency market. Based on this, more talents will have the confidence to use encryption technology for P2P payment.
(I am Yuan Huiteng, the author of Odaily. I am exploring the real blockchain. If you are looking for reports, please add WeChat zzl0312520. Please note your name, company, and title. For reprinting/content cooperation, please contact report@odaily.com.)
(I am Yuan Huiteng, the author of Odaily. I am exploring the real blockchain. If you are looking for reports, please add WeChat zzl0312520. Please note your name, company, and title. For reprinting/content cooperation, please contact report@odaily.com.)
