The benefits of accepting stablecoins as a business

Crypto, tokens, and stablecoins are becoming an increasingly popular payment method among crypto consumers around the world. As such, there are numerous benefits of accepting stablecoins as a business, including new streams of revenue, avoiding the volatility of some local currencies, faster transactions and settlement, global reach, and cross-border payments. Along with these benefits, accepting stablecoins as a business can also increase customer trust and confidence by offering safe and compliant payment methods and demonstrating your interest in the most innovative technologies. In short, accepting stablecoins allows businesses to tap into a growing market segment with a modern and flexible form of payment that aligns with the preferences of a new generation of consumers. 

In this article, we take a closer look at what stablecoins are, why they are so popular, and the benefits and practicalities of accepting stablecoins as a business. Let’s go.  

What are stablecoins?

Stablecoins are a type of cryptocurrency whose value is pegged or tied to that of another currency, commodity, or financial instrument. This design is intended to maintain a stable value and avoid the volatility associated with other cryptocurrencies such as Bitcoin, Ethereum, or Solana. Given this stability, stablecoins are often the preferred choice for moving funds between the world of digital currencies and the traditional financial system. It also makes them a great option for everyday transactions between consumers and businesses, as they combine the benefits of cryptocurrencies —such as fast, low-cost transactions and global accessibility— with the predictability of stable value. 

Why are stablecoins so popular?

Stablecoins are growing in popularity thanks to their best-of-both-worlds nature —the flexibility, security, speed, and borderless capabilities of cryptocurrencies, alongside the reliability and low volatility associated with the FIAT currencies to which their value is pegged. It is precisely their stability —often pegged to currencies such as the U.S. dollar— that makes them a reliable form of exchange and appeal to both consumers and businesses. 

Stablecoins also act as a bridge into the digital cryptocurrency market, allowing users to transfer funds in and out of crypto investments without needing to withdraw their funds into the traditional financial system. As stablecoins, funds retain their value and provide a more flexible source of crypto investment. Their borderless nature also makes them ideal for international payments and remittances and as a hedge against inflation in regions with unstable local currencies.

Benefits of accepting stablecoins as a business

The benefits of accepting stablecoins as a business can transform how consumers perceive and transact with goods and services, particularly if they are located overseas. The borderless nature of cryptocurrency and stablecoins removes any complications associated with currency conversions and international payment fees and delays. What’s more, by bypassing the volatility of other cryptocurrencies, and of some local currencies, stablecoins offer a more predictable, reliable and secure payment option, which can open businesses up to a wider customer base and increase streams of revenue

.

Accept stablecoins with ForumPay

Our crypto payment gateway allows businesses to accept both standard cryptocurrencies and stablecoins, such as USDT and USDC, from consumers around the world. The beauty of ForumPay’s solution is that it allows businesses to accept stablecoins and other digital currencies from consumers but receive the traditional currency of their choice as payment. 

Whether customers pay in major cryptocurrencies, such as Bitcoin, Ethereum, Solana, or stablecoins, ForumPay converts the amount paid into the merchant’s currency of choice, instantly recording the successful sale on the ForumPay merchant dashboard. These funds are then transferred to the merchant’s bank account the next business day, allowing near-immediate access to revenue. 

As with crypto, when consumers pay with stablecoins, there is no risk of chargebacks, as all crypto transactions are final. The fees associated with crypto and stablecoin transactions are also generally much more cost-effective than those incurred through credit or debit card payments, offering extra financial benefits for merchants and businesses. 

Issue refunds and payouts in stablecoin with ForumPay

ForumPay is also able to issue refunds and payouts in stablecoin on behalf of merchants and businesses. If the need for payouts is known or anticipated, businesses can choose to set up a reserve in stablecoins to avoid possible fluctuations in value. Then, when making a refund or payout, the balance is topped off at settlement. There is also the option to issue refunds and payouts either individually or in batches to minimize transaction fees.

For more information on accepting stablecoins as a business, issuing refunds and payouts in stablecoins, ForumPay and our services, or for other trends and insights from the world of crypto, visit www.forumpay.com, and follow us on social media.