Cryptocurrency point of sale terminals enables merchants to receive payments from their customers through an integrated point of sale terminal which can process cryptocurrency transactions. The use of cryptocurrency point of sale terminals is increasingly gaining ground in different economies. This increase in momentum can be attributed to several factors. One of these factors is the fact that cryptocurrencies are global in nature and thus not under the control of any specific government. Another crucial factor which has led to an increase in their adoption is their ability to appreciate in value over the years compared to fiat currencies which have exhibited a depreciating pattern over the years.
Cryptocurrency Point of Sale (POS) Providers
There are several companies which provide cryptocurrency POS services. Some of the prominent companies have been highlighted below:
- CoinBase: This cryptocurrency transaction processor provides both land-based cryptocurrency POS solutions and also e-commerce solutions. The only drawback with this processor is that it only supports US banks as a source of funding.
- Coinfy: This company offers a point of sale solutions for both online and offline systems. It has options for merchants to accept bitcoins, fiat currency or a mix of both.
- Bitpay: This processor does not have country limitations but works internationally. Its soft touch POS software supports the Bitpay extension thus making it possible to integrate bitcoin payments within the fiat-based POS system. The Bitpay app also has an API (Application Programming Interface) for software developers to integrate the Bitpay payment processor within their own systems.
- BitXatm: BitXatm Company offers cryptocurrency point of sale solutions through Sumo Pro system. Not only does this software offer POS solutions but it also has cryptocurrency ATM capabilities. Thus users who need both cryptocurrency ATM services and POS services will have a one-stop solution if they choose this payment processor.
- Coin of Sale: Developed in Singapore, this bitcoin app has an integrated software which supports the Electrum Wallet. To accept payments, the merchants are required to launch the app and enter the amount needed to be paid. The customers will then be required to use the app installed on their smartphones to scan the QR code displayed on the merchant’s device screen. A successful scan will debit cryptocurrencies on the customer’s cryptocurrency wallet and credit the wallet of the merchant.
Key Determinants for the Success of Cryptocurrency Point of Sale Terminals Adoption
There are several key determinants which will influence the mass uptake of cryptocurrency point of sale terminals by the merchants. One of the issues of concern among the merchants is the compatibility problem. Merchants and business owners would more readily embrace a cryptocurrency point of sale terminals which are compatible with the existing fiat currency systems. This will reduce the time needed to process the orders and it will also make stock and profit tracking easier.
Another crucial factor which will determine the success of the cryptocurrency point of sale terminals is the number of cryptocurrency users in the economy. An economy with a large number of people who trade in cryptocurrency will more likely embrace these kinds of point of sale (PoS) terminals than another economy which has a few crypto users.
The high transaction fees charged when transferring cryptocurrencies has also held back the wide use of cryptocurrency point of sale terminals. Lowering of this transaction fee will be key in encouraging the wide usage of these point of sale facilities.
Most point of sale outlets process many customer orders. Thus transaction time is key to ensuring that all customers are served satisfactorily without unnecessarily delaying customers on the queue. For the successes of the cryptocurrency point of sale terminals, the time taken to complete these transactions should be minimal to enable quick processing of orders.
The availability of secure, reliable, and affordable cryptocurrency point of sale apps and facilities will go a long way in ensuring the adoption of this new technology. Small companies selling goods and services at a small scale may not have the technological capacity to develop their own cryptocurrency point of sale terminals. The mass production of these facilities will increase the rate of adoption of these terminals among the merchants.
Benefits of Cryptocurrency Point of Sale Terminals
- Inability to reverse transactions: It is difficult for a person to reverse a cryptocurrency transaction after it has been completed. This is beneficial to merchants who have experienced losses after dishonest customers reverse legitimate transactions which occurred using the normal credit card and mobile-wallet money systems.
- Global currency: Unlike fiat currencies, cryptocurrencies are not controlled by any specific government. Its value is thus determined by the users of such a currency. Merchants who accept this currency will thus have an option of using the acquired crypto coins to purchase different products from international companies which accept cryptocurrencies. The merchants, can as well, choose to convert these digital currencies to a fiat currency in use in that given country.
- Avoiding chargebacks: Cryptocurrency transactions cannot be completed on credit bases. Thus merchants are protected from losses when credit card customers initiate a dispute and the bank charges the amount disputed to the merchant account while favoring the customer. At the same time losses associated with the failure of the customer to recharge their credit cards are also avoided.
- An outlet to spend your crypto coins: Cryptocurrency point of sale terminals will provide cryptocurrency users with an avenue where they can spend their earned digital currencies to buy goods and services. It will thus increase the convenience of the crypto users since they will be able to utilize these currencies in the same way they use the fiat currencies.
- Drawbacks: Cryptocurrency point of sale terminals are not as widely distributed as the fiat and electronic point of sale terminals. This limits the options which a crypto user has in spending his/her earned crypto coins.
Cryptocurrency point of sale terminals has a high potential of revolutionizing how people make their purchases and increase the financial freedom of many ordinary people. However, for these possibilities to become realities much work needs to be done. Mass production of cryptocurrency point of sale terminals needs to be done, cryptocurrency education needs to be conducted to increase the cryptocurrency user base and the different national governments need to step in and create a favorable climate for the use of these point of sale terminals.