Today, more and more business owners are ready to accept digital payment options. When it comes to transfer fees, payout processes and financial security, cryptocurrencies just make sense. That’s why recently there have been many Fortune 500 companies that have started to accept Bitcoin in the past couple of years. Today you can buy Xbox games, Starbucks coffee, and even construction material from Home Depot using Bitcoin.
But we’re not here to talk about the benefits of adding Bitcoin payments to your store. The next cryptocurrency in town is the Diem Dollar — and it’s the one you should be focusing on this year. With its tentatively planned launch in 2021, Diem could become one of the world’s leading cryptocurrencies in a matter of just a few years.
Adding a Diem payment option to your online store will become increasingly relevant — and there are a couple of reasons why you should be one of the first to do so. In this article, we’ll delve deeper into what Diem is, the benefits of accepting Diem transactions, and why you should add a Diem payment gateway to your store this year.
What is Diem?
Diem is a new cryptocurrency created by Facebook and overseen by the Diem Association. Its model is fairly simple –– Diem is a stablecoin backed by the US Dollar and built on blockchain technology. Unlike Bitcoin, the price of Diem is fixed, with 1 Diem Dollar equal to 1 US Dollar.
The primary goal of Diem is to make it easier to exchange money. Whether you’re sending money to family across the world or making a purchase from an online store, digital money is going to transform the way we manage our finances. Diem will offer low transfer fees, instant transaction times, and new ways to send and receive money via apps like Facebook’s Messenger and WhatsApp.
Read also: How Diem Works: FAQ About the Diem dollar
Diem: A Fast-Growing Cryptocurrency
Over the next year Diem is bound to be all over the news and make history as the fastest-growing cryptocurrency in history. Cryptocurrencies have been around for over a decade, but to many people they still seem like a niche currency option designed for financial, tech-savvy people. This is where the Diem Dollar comes in.
With combined users from Facebook, WhatsApp, and Instagram, the social media company boasts a user base of over 3 billion. When Diem launches, all users of these apps will get introduced to new ways of making Diem transactions with the Novi wallet. And since Diem’s concept is straightforward, it has the potential to convince a large portion of the world population to start using cryptocurrency day-to-day.
4 Reasons to Add a Diem Payment Gateway to your online Store:
The Diem Dollar is yet to launch, but companies are already getting ready to process and accept Diem payments. In the beginning, it’s likely that the most important cryptocurrency exchanges and e-wallet providers will be able to accept Diem. Members of the Diem Association are also likely to accept Diem payments right away. Those include corporations like Spotify, Uber, Lyft, Shopify, as well as payment giants like PayU and Checkout.com.
If you’re wondering why you should join these companies’ ranks, here are 4 good reasons to add a Diem payment processor to your online store.
1. Diem Attracts New Global Customers
First things first, Diem is going to be big. With the social media giant’s massive user base and Diem’s accessibility, the Diem Dollar could become a leading payment method in just a matter of years. At first, it’s likely that social media users will primarily use the Novi wallet to exchange money with friends and family. But as it gains popularity, these users are likely to turn to companies where they can spend their Diem Dollars.
Diem will be available in over 35 countries, which also represent a lot of new international customers. By adding Diem to your online store, your business can be one of the first companies to accept Diem payments which is sure to increase your customer base. Accepting Diem payments this year sends a strong message: you’re a future-oriented company that thinks outside the box when it comes to money.
2. Skip the Middleman and Pay Lower Transaction Fees
Accepting Diem transactions allows you to receive money directly, without going through a traditional bank or card network. Since financial institutions can charge costly fees for credit and debit card processing, it could save you and your business a lot of money in the long run. If you’re looking to lower your overhead costs, accepting payments with cryptocurrencies like the Diem Dollar makes a lot of sense.
This is particularly true if your business accepts international payments which tend to be more expensive to process. In addition, processing foreign transactions also mean your business needs to deal with international exchange rates. With cryptocurrency, accepting payments from customers all over the world is a lot easier and a lot cheaper.
3. Diem Prevents Fraudulent Transactions
As a business owner, it’s important to protect your company against fraud. When it comes to financial security, cryptocurrencies are changing the game. Like Bitcoin, the Diem Dollar is built on ever-secure blockchain technology. Each Diem transaction is verified and is a secure block that can’t be hacked or modified.
Blockchain technology makes it virtually impossible to make a Diem transaction with insufficient funds, which is another major difference between Diem and traditional payment systems. Add in fraud-protection that First’s Diem Payment Gateway provides, and financial issues can become the least of your concerns.
Read also: Why Diem is Better Than Bitcoin?
4. Diem is Easy to Add to Your Store
While many companies want to start accepting digital currencies, they’re often put off by the work that’s involved in changing their payment processing system. But with First’s API, you’ll be able to start processing Diem payments with close to no work on your end. First Digital Assets makes it easy to add a Diem payment processor to your store — no matter the size of your business.
As well as helping you process new forms of payment, First can also protect you against fraud. First’s built-in fraud protection technology means you don’t have to worry about processing Diem payments from insolvable customers. First also covers all the necessary compliance requirements so you’re always up-to-date with the latest payment processing regulations.
Digital Currencies: The Payment Option of the Future
Cryptocurrencies provide an attractive alternative to traditional currencies. They offer both customers and merchants a safer way to exchange money, and they’re also faster while cutting down on transfer fees. With an impressive list of benefits for both customers and payment service providers, digital currencies are the payment option of the future.
Over the next few years, both on and offline shoppers will be making more purchases using digital currency. As a business owner, it’s important to be ready for these changes — no matter the size of your business. By being one of the first companies to accept Diem as a payment method, you'll already be one step ahead of your competition.