Over the past year, more and more companies are jumping on board with different online payment solutions. Just recently, PayPal Holdings Inc. announced that it would be the next to support cryptocurrency.
In early March, PayPal shared that Tel Aviv, Israel-based Curv will become part of PayPal business unit later this year. This move is part of the company’s strategy to tighten security as it pushes into the world of cryptocurrency. Curv, Inc. is a provider of cloud-based infrastructure for digital-asset security aimed at cryptocurrency exchanges, brokers and over-the-counter trading desks.
Curv allows wallet holders to set custom spending rules that govern how and when funds can be transferred to and from their wallets. Wallet holders are also able to specify which users, groups and machines are permitted to approve different transactions and maintain lists of pre-approved destinations. Curv takes things a step further by also providing a log of who signed and initiated each transaction.
Next Stop, Cryptocurrency
The proven security Curv provides around digital-currency assets ultimately reinforces PayPal’s strategy. It ensures account holders can buy, hold and sell cryptocurrency directly from their account. Even better, PayPal has stated that it will also make cryptocurrency available as a funding source for purchases at merchants that accept PayPal as a payment processing option.
“PayPal is clearly trying to weave cryptocurrencies, which are sizzling hot, into its already-compelling payments network growth story,” explains Eric Grover, principal at Minden, Nev.-based payments-advisory Intrepid Ventures.
“To the extent Curv enhances PayPal’s ability to better support cryptocurrencies, some of which will fund retail and [peer-to-peer] payments, it will increase the size of the network and create value.”
Why Merchants are Accepting Cryptocurrency
More and more small businesses are wondering if accepting cryptocurrency is right for them. In truth, if set up correctly, there are several benefits small business owners should consider:
- Lower transaction fees. Since there is no central intermediary, using cryptocurrency dramatically reduces transaction fees. For small businesses used to facing fees of around 25 cents for each card swipe, plus 2 to 4 percent of the transaction total, cryptocurrency is often a welcome option.
- Merchant protection. A decentralized setup also protects merchants from the growing number of fraudulent chargebacks.
- Meeting consumer preferences. Consumers’ needs and preferences have changed dramatically over the past year. Accepting cryptocurrency offers businesses an advantage and ensures consumers have yet another way to pay securely as more and more transactions move online.
The bottom line: cryptocurrency appears to be here to stay. With big companies like PayPal jumping on board, merchants can expect greater security and more options in the future.
Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of bestpaymentproviders.com. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice-cream on his backyard porch, as should all right-thinking people.