Long gone are the days of traditional crowdfunding. Enter cryptocurrencies.
With a high adoption rate for digital assets, you can just about pay for anything with cryptocurrency (if you try hard enough.) Debit cards linked to digital asset wallets from variegated cryptocurrency exchanges and used for payments at merchants are now à la mode, where merchants are slowly acclimatizing to this new medium of transactions.
At some point, Starbucks was considering implementing direct Bitcoin payment options at its stores; cryptocurrency payments can be negotiated now on indie e-commerce platform Etsy; live streaming platform Twitch accepts subscription payments in crypto and finally, one can also pay with their Bitcoin, Ethereum, and other coins for VPN subscriptions, or even huge purchases on US-based online furniture aggregator platform Overstock.
As crypto revolutionizes the realm of payments, what about crowdfunding?
Traditional crowdfunding platforms offering conventional payment options are just not cutting it anymore. Merchants bear credit card transaction costs from banks, while PayPal takes an arguably hefty cut from both merchants and customers.
Take Kickstarter, Indiegogo or Gofundme for example. These major crowdfunding platforms and the options they provide – direct credit card payments or via PayPal’s payment gateway – result in substantial cuts into any raised amounts by project owners pitching their products or services on these platforms. While platform commission cuts cannot be entirely avoided, merchants and customers should at the very least enjoy some savings with every purchase made.
Here are three ways cryptocurrency empowers the crowdfunding machine.
- Higher Investment Returns
Businesses that integrate crypto payments on their platforms saw an average increase of 337% in investment returns, a popular payments provider BitPay revealed in a recent report.
Merchants who utilize crypto payment gateways capture a larger proportion of buyers’ crowd at relatively low costs and risks. They can expand their current user base by converting customers who are looking for a store to spend their cryptocurrencies at, or those who were already interested in the offerings of a particular merchant but were deterred by the lack of crypto payment options.
We also wrongly assume that all potential customers have access to or own credit cards. Those who do not are excluded from the crowdfunding process, but the beauty of cryptocurrency is that any individual can purchase, manage and utilize digital assets as long as one has a smartphone in possession. From crypto exchange or digital wallet applications on phones, customers can easily make payments even without credit cards. Enabling crypto payments is an inclusionary move that allows merchants to convert this group of buyers.
In this way, merchants are not just adding a single payment option to their platforms, but one that opens up a pool of more than 100 different cryptocurrencies, subject to the merchant’s preference.
These findings prove that user acquisition growth of approximately 40% is possible with crypto, and the fact that crypto users were double that of credit card users indicates a burgeoning shift away from traditional payment methods if crypto becomes available.
- Buyers’ Privacy & Security Guaranteed
Anonymity and privacy safeguards are becoming increasingly crucial in the crowdfunding process. Buyers often experience uncertainty when making purchases online, while others prefer to stay anonymous but are unable to as traditional payment methods require identity verification.
With crypto payment gateways, making a transfer involves only wallet addresses, and the crowdfunding platform itself does not capture any personal data. Instead, it acts as a conduit between customers and their funds when they support a particular product so customers do not have to worry about the safety of their personal financial data.
- Easy Crypto Payment Gateway Setups
How difficult is it to set up a crypto payment gateway? Merchants assume that the process is exceedingly complex and they end up intimidated by the technical aspects of having to integrate one, but the truth could not be further from that. As easy as it is to add a PayPal or Woo-commerce payment gateways to any WordPress or Shopify supported website, the same goes for crypto.
Multiple available widgets online such as Coinbase Commerce enable merchants to widen their payment option offerings to customers in a convenient and low-cost manner. Some others allow direct transfers into digital wallet addresses as specified by the merchant so they can bypass any further intermediaries in the process, where their earnings could be affected due to transaction costs. Of course, transaction fees are likely much lower when dealing with crypto-backed services, as compared to those processing solely fiat currencies.
While getting familiarized with the inner workings of cryptocurrency is a massive undertaking at the onset, the eventual payout for both customers and project owners on crowdfunding platforms is worth the trouble.
It is time to embrace the future of money lest merchants get left behind by continuous innovations in the digital assets space.
How Can Concordia Ventures Help?
Concordia Ventures is a leading pioneer in cryptocurrency-based crowdfunding, where the integration of crypto payment options is provided to you in our one-stop platform. At Concordia, we can increase the odds of a successful crowdfunding campaign for you with the help of cryptocurrency. This is due to our in-app digital wallet feature, which allows users to support campaigns on our platform directly with the virtual assets stored and managed in each user’s account. With the ease of crypto payments, users who prefer crypto are certainly encouraged to participate in the crowdfunding of projects available on Concordia’s platform.
On the other hand, project owners and merchants can look forward to onboarding a new base of customers who happen to be crypto enthusiasts. Empowering both customers and merchants in the process of crowdfunding is at the heart of Concordia’s manifesto.
At Concordia, we believe that your success is our success.
About Concordia Ventures
If you are interested in listing your project or finding out more about our platform, drop us an email at firstname.lastname@example.org. We are only accepting technology-related projects at this point in time for our launch campaign. We will be launching our desktop and mobile versions for iOS and Android soon. Subscribe to our newsletter to stay updated with our launch date!