As the European Union intends to introduce the Markets in Crypto Assets Regulation, MiCA, cryptocurrencies will experience massive adoption.This is a good signal for traditional financial services providers, including neobanks and PSPs, to consider new opportunities in the crypto space. When fiat currency businesses decide to work with cryptocurrencies, their customers are likely to have certain concerns and distrust with new payment option.To convince them otherwise, it is necessary to inform and educate customers to prove that cryptocurrency is a new innovative payment method. Cryptocurrencies have disrupted traditional payment systems, offering faster, more secure, and cost-effective cross-border transactions.
By familiarizing with cryptocurrencies, PSPs and Neobanks can expand their service offerings, attract tech-savvy customers, and remain competitive in an ever-evolving digital economy. The integration of cryptocurrency transactions for PSPs and neobanks is a strategic move, and our product, WhiteFlo, is designed to help capitalize on this opportunity. Understanding the intricacies of cryptocurrencies and explaining it to customers allows financial institutions to provide more seamless and innovative payment solutions, bridging the gap between traditional and decentralized finance.
Why are users afraid of crypto payments?
Challenges with Understanding Blockchain Complexity
For newcomers to cryptocurrencies, cryptocurrency is always an arrogant and difficult topic to understand. Many are convinced that a single mistake can lead to the loss of all funds in the account. This is where the misunderstandings and distrust arise.
Volatility inherent in cryptocurrencies
Cryptocurrencies are known for their volatile prices, which sometimes experience significant fluctuations over a short period. This volatility can make customers hesitant to use cryptocurrencies for payments, as the value of the cryptocurrency they hold can change dramatically between the time they buy it and the time they spend it.
Concerns Over Potential Loss of Funds in Cryptocurrency Transactions
Customers who are just considering for themselves the possibility of using crypto may have some doubts. People can associate cryptocurrencies with unreliable payments and the possibility of getting their funds lost. This misunderstanding may lead to concerns or uncertainty about using cryptocurrencies for transactions.
From Insurance to Confidence: Educating Clients on the Benefits of Cryptocurrency Payments
Dealing with users who are afraid of using crypto payments requires understanding their concerns and addressing them with education, transparency, and user-friendly solutions.
How to deal with the lack of understanding
Provide clear and accessible educational resources about cryptocurrencies, how they work, their benefits, and potential risks. Explain simple concepts like wallets, private keys, and blockchain technology. Knowledge can empower users to make informed decisions. Another great solution is to provide users with a simple interface with the necessary functions. This will be a nice addition to the website and will attract users to learn and master new things.
How to deal with volatility
The problem of cryptocurrency price volatility cannot be completely solved, as it all depends on the characteristics of a particular currency. To ease customer's concerns, offering stablecoins on the market is possible. WhiteFlo software supports many cryptocurrencies, which include stablecoins such as USDT and USDC.
How to deal with the anxiety of losing funds
Mistrust is one of the factors that is not easy to overcome in people. To overcome this factor, PSPs and neobanks need to inform customers more about the benefits of cryptocurrencies. As financial institutions, you can periodically publish a blog article about the main features of crypto, security, reliability, and much more.
Taking into account all the tips, PSPs and Neobanks can empower their customers to embrace cryptocurrencies with confidence, fostering a more inclusive and knowledgeable user base in the rapidly evolving landscape of digital finance.To ensure smooth and secure crypto payment transactions, storage and exchange, consider using WhiteFlo ready-made product, which is aimed at providing efficient software solutions for crypto payment processing companies.