Why should you consider USDT payment processors for your eCommerce?
USDT payment processors offer higher efficiency and low transaction processing time. That's why the eCommerce sector is inclining towards accepting USDT payments. USD Tether works on the identical blockchain to Bitcoin. It is considered as 3rd largest cryptocurrency as per its market capitalization. USDT is pegged by 1 dollar for each coin or token. This offers less volatility, and merchants found this feature very helpful compared to other cryptocurrencies.
Currently, we are living in the dawn of technological advancement. This creates a need to evolve as per the surroundings to stay in business. As cryptocurrency users are increasing, they also demand or prefer crypto mainstream payments. These changing dynamics most influence eCommerce. Many eCommerce stores and businesses have already started accepting USDT payments. However, there are still a few of them who are sceptical about it due to a lack of information and technological resources. In this blog, we will address why you should consider a USDT payment processor for your eCommerce?
What is USDT?
USDT is a stablecoin ultimately pegged by the US dollar and Tether reserves. Stablecoin is a part of a Hong Kong-based company known as iFinex. Initially, Tether was introduced to the market as RealCoin in July 2014. Later it got relaunched as Tether in November 2014. The trading functions of USDT started in 2015. Tether has been built on the Bitcoin blockchain. With regular evolution, it can now support Omni of Bitcoin, Ethereum, TRON, etc. Until December 2021, the market capitalization of USDT was around $167 billion, surging from a value of $5 billion recorded in 2019. If we talk about the USD backing of Tether, it is $1 for each USDT. The company has a reserve of US dollars which is exchanged for each value of USDT. The blockchain of the system has complete verification for all USDT circulation volumes.
Advantages of using USDT payment processors
USDT payment processors offer several benefits to help merchants and business people increase their business efficiency. Not only can it help in achieving faster ways of transactions, but it can also provide better customer satisfaction. Some of the most crucial benefits of USDT payment processors are;
Defying the volatility
USDT comes with a stable price range. This decreases the probability of losses due to the fluctuating values of cryptocurrency. Among several other options for accepting crypto payments, the USDT is much preferable because of its stable value support. Businesses are pretty sceptical about accepting crypto because if they choose to build a reserve in cryptocurrency, their capital comes under the profound implications of fluctuating market prices. Even for the regular day-to-day transactions, this issue can be very problematic. However, USDT payments defy all the worries regarding volatility with their stable and predictable value.
Low transaction time
Everyday fiat currency transactions take days to get processed. Also, they are under the supervision of several financial intermediaries, increasing the overall ideal time of executing a transaction. However, with USDT payment processors, this issue quickly gets resolved. The complete transaction process can be done within minutes. This seamless way of transferring digital money is especially beneficial for small businesses that need to maintain a specific cash flow. This helps faster process clients' payments and maintain the required balance for running the business's everyday operations.
Low transaction fees
The fiat exchanges charge very high transaction fees. Especially if the transaction is from foreign clients or users, the number of exchange barriers also increases, resulting in higher transaction fee charges. However, with USDT payment channel, you need to pay nominal transaction fees. Therefore, whether you want to execute a native or a foreign transaction, you can easily do it without paying extra charges. It is especially beneficial for small businesses with overseas employees or migrant workers. Most of them need to send their money to their native countries, which charge around 7% of transaction fees. Therefore, businesses can support their employees by direct USDT transactions and can save their hard-earned money.
Foreign payments and expanded customer base
Businesses who want to expand their customer base even to foreign countries or remote regions find the obstacle of accepting payments from remote clients. There are several regions where businesses have found the demand for their product or services. But due to that region's underdeveloped financial system, they cannot offer their services and products there. However, with USDT payment processors, this issue can be quickly resolved. Clients can easily make transactions with USDT in DeFi ecosystems.
There are several regions in the world where people don't have enough means to control their assets and finances. Such as rural areas where access to banks is a very gruesome task. Such people can get benefits from using USDT payments. If your eCommerce store accepts USDT payments, it eliminates the need to connect with a bank or fiat financial institution to make payments for their purchases. This also helps tap into a remote customer base, which is impossible with regular currency. This also eliminates the requirement of physical cash for making the payments.
USDT works on a very different operational structure. This makes USDT payment processors much more preferable to other available options. Choosing USDT payment processors not only helps in receiving payment without any high transaction fees and long processing time, but it also helps tap into a more extensive customer base. Also, it helps in enjoying all the benefits of stablecoin payments. Small businesses and eCommerce also find it helpful to pay their employees or clients with seamless processing.
Moreover, USDT is a safe option that eradicates the danger of high volatility. That's why more and more eCommerce businesses are opting for USDT payment processors. Businesses aiming to bend and evolve their operational structure as per the future requirements should also consider accepting USDT payments because the future resides with digital money operations and transactions. Especially in eCommerce platforms, digital money will bring revolutionary changes. So businesses should also prepare themselves as per the future perspectives. Accepting USDT payment processors is the best way to ensure your firm footing in a future eCommerce business.