The use of credit cards cannot be overemphasised. It has been a staple and rather a necessary method of payment for the last 20 or so years. Credit cards are easy to carry (pocket sized), easily portable and have no intrinsic value in themselves. They had been enabled to make the purchase of goods and payment of services easy with a small fee attached.
Although it has so many benefits, credit/debit cards are flawed in many ways such as complicated and high fees for merchants, user requirements for consumers, and high consumer fees. Also, the bank issuing the credit card can revoke a customer’s card or credit at any time leaving the user financially incapable or stranded.
The Application of Cryptocurrency for Payments
Over the last few years, cryptocurrencies have gained a lot of momentum in the financial world. This can be attributed to the one major advantage of not being under the regulation and authorisation of any central body such as the banks or the government. They also introduce a viable alternative payment method and are likely to gain significant share in the payment methods mix in the near future.
Initially, one of the issues holding back the wider use of cryptocurrency in Africa and all over the world is the lack of businesses that accept digital currencies as payment. However, businesses are being awakened to the many opportunities offered by cryptocurrency. Startups, technology companies and other service structured companies are gradually improving the ease of acquisition and use of cryptocurrency. Currently, it is not very easy to purchase any cryptocurrency of choice and also use it as payment for goods and services. A number of businesses are working on making user-friendly cryptocurrency point-of-sale systems (POS). This will make the spending of digital currencies as simplified as using fiat currency in the modern world.
The POS market has rapidly advanced to not only include bitcoins but to also include several altcoins for use. This has piqued the interest of merchants and consumers who prefer the use of cryptos for payments. A cryptocurrency that becomes a mainstream payment method would need the ability to confirm hundreds, if not thousands, of transactions per second. Many altcoins have this capability, but Bitcoin, in its original iteration, could only handle a maximum of seven. The implementation of Segregated Witness, and soon the Lightning Network, should increase this number substantially. Other cryptos with low transaction capabilities, such as Ethereum, are also being upgraded.
Avesta another company looking to bring new payment solutions to Africa. Having finished their Token sale, 2018 promises to be busy for the company, with hopes to launch a debit card by the end of the year.
Network fees will likely be another key factor in moving cryptocurrencies into mainstream use. Cryptos already have transaction fees that are far lower than credit and debit cards, which is a major incentive for merchants to encourage their use. However, because network fees can vary widely, along with cryptocurrency values, choosing the lowest at any given time is problematic. An advantage of a multi-crypto POS platform is the ability for consumers to choose the crypto with the lowest fee at the time of purchase. A platform could even be configured to make the choice automatically.
For cryptocurrency to become truly mainstream, it must be considered more than a mere store of value, or reserve currency. Consumers must spend it, as they do fiat, on day-to-day purchases. Point-of-sale services are thus a key component of the crypto movement. Companies behind these platforms are confident that they can offer a superior purchasing experience at a much lower price. It is thus likely that soon crypto POS options will become as common as other payment options.
Avesta, comes with a low transaction fee, user-friendly interface, fast confirmation time of only ten seconds, few clicks or taps and you have access to cryptocurrencies, giving users a Seamless Digital Currency experience while keeping security paramount!