In the Age of Cryptocurrencies, Do You Have the Experts to Stay Current?

It seems you cannot blink these days without hearing about the newest currency on the market or the ever-skyrocketing rate of Bitcoin. Even Kodak, a company most Americans thought was dead, has gotten into the crypto game. While the market is still quite new (and in some cases, quite volatile), companies in the payment systems sector need to understand the state of the market, so they can use the continuing rise of crypto as a catalyst for growth.

Cryptocurrency Users Rely on Payment Processors

Cryptocurrency has been positioned as an end to traditional money, banking and payment systems. However, even if bitcoin achieved ubiquitous adoption and people began to regularly use it for transactions over government-issued currency, merchants would still need a lot of help.

In a world dominated by bitcoin, merchants would need to have the technology in place to accept bitcoin without any help. They’d have to create and manage their own cryptocurrency wallets to receive funds, and they would need the ability to pay for their labor and inventory with bitcoin, or they’d have to convert it to government-issued currency all on their own.

That is a scenario that none of us will see in our lifetimes. The reality is merchants will need to rely on payment systems and processors if they want to be able to use or accept cryptocurrencies in their business. The process of transacting with bitcoin is extremely complex. Say 1 bitcoin (BTC) is worth $2,500 at the point of sale. But by the time merchant wants to use that money, it’s only worth $2,000. They’ve lost $500 in one transaction.

Instant conversion in the volatile cryptocurrency market is essential for merchant success and profitability. Businesses accepting cryptocurrency need to rely on third parties to ensure they can lock in the rate in U.S. dollars, and there is ample opportunity for growth in this area.

Crypto Offers No Consumer Protection

There is also opportunity in refunds and dispute resolution. Consumers value their relationships with their Visa and MasterCard banks because of the well-defined rules for purchases, refunds, disputes and protection. The landscape is currently a bit riskier in cryptocurrency purchase.

Say someone bought an iPhone with a MasterCard and the merchant send them a box of ping pong balls. MasterCard will give the consumer their money back. If that same person bought a phone with bitcoin and was defrauded, they are out of luck because BTC transactions are not reversible. Payment processors play a vital role in consumer protection, and innovative companies can and should be poised to leverage the opportunity available in this area in the future.

Do You Have the Right Team to Help?

Navigating the current landscape and leveraging growth opportunities in cryptocurrency requires a team who has their fingers on the pulse of market trends. Sales and marketing professionals need to be ready to leverage current and future pain points to offer solutions for prospects and clients. If you are looking for talented sales and marketing pros who can keep you ahead of trends, contact the expert recruiters at MoneyTech Search today.