Digitization fuelled by technology has helped several businesses to expand their reach beyond their local markets. With the internet and all forms of modern technology, people can sell products or even offer services to people who are thousands of miles away.
The e-commerce and online gig economy is a big one, and accepting payments from anywhere in the world is a big deal for these businesses, as a lack of accessible payment options could deter a business from closing all necessary deals; hence, businesses of all sizes need to be able to accept payments from anywhere in the world. In some cases, processing these transactions is indeed seamless; however, at other times, international transactions can be challenging due to several factors, such as exchange rates, taxes, and other fees. All of these could slowly accrue into huge amounts that eat deep into the business's profits.
Ideally, businesses shouldn’t lose a substantial part of their profits to conversion fees, commissions, taxes, and other hassles that come with international transactions; however, the reverse is sometimes the case. If you have experienced similar problems while dealing with international transactions, this article is for you; keep reading.
Understanding Exchange Rates and Taxes
To convert a foreign amount to your local currency, you would need to take the exchange rate into consideration. The exchange rate determines how much a foreign currency is worth in your local currency.
The exchange rate is determined by various factors, such as political instability, changes in economic conditions, and trade policies; basically, the Federal government’s performance of your country will greatly impact the worth of your exchange rate. This may not be a big deal in fairly stable economies; however, it is a huge worry in countries with economic crises.
Several countries are dealing with hyperinflation where the official exchange rate doesn’t apply in the real market, and businesses that deal with clients outside the country may receive lesser value for their money if they try to accept a wire transfer. Of course, when businesses accept payments from another country, they must convert the payment amount to their own currency in order to spend it at home. However, fluctuating exchange rates can make it challenging to calculate the total cost of a transaction accurately and may result in unexpected expenses for businesses.
In addition to the possible uncertainty with exchange rates, businesses also need to consider taxes, conversion fees, and other associated charges that can add up quickly. Failure to consider these factors can result in unexpected expenses and may impact the profitability of a business.
Cryptocurrency as a Solution to Exchange Rate and Tax Concerns
Despite the growth of many digital payment solutions, the issues of exchange rates, high conversion fees, and multiple taxes persist as many of these solutions are sometimes restricted by several governments that give them operating licenses; hence, cryptocurrency, being a decentralized global currency, free of affiliation to any country or government can bring a much more workable solution to the global payments landscape.
Cryptocurrencies, like Bitcoin and Ethereum, are run by decentralized nodes via blockchain technology that allows global transactions to be completed in real-time; hence, I can send money from Africa to Asia within minutes without needing any bank to approve my transactions. More importantly, the recipient can easily accept the payment, spend it as cryptocurrency, or easily convert it to their local currency with the most favorable option that won’t cause a loss in value.
Think of cryptocurrency as a universal currency that connects the world. In other words, with crypto exchanges, you can personalize your foreign exchange preference and get cash at hand from anywhere in the world within minutes.
Accepting Crypto Payments with the Cwallet Request Tool
Accepting crypto payments is easy with the Cwallet request tool. The main advantage of this tool is that it allows you to create a single payment, with which your clients or customers can pay, regardless of the cryptocurrency. Hence, whether you prefer Bitcoin, Ethereum, DogeCoin, or other popular cryptocurrencies, you only need one payment link to accept that payment.
More importantly, you don’t need to bother yourself with the hassle of typing out the crypto amount; just type out the fiat equivalent of what you intend to request, and the app will ensure that you get the amount in cryptocurrency.
Once your payment link is created, you can share it with their customers or clients through various means, including email, social media, or messaging apps. The payment link can also be copied or saved as a QR code for easy sharing.
When customers or clients click on the payment link, they are directed to a page where they can make their payments.
Cwallet also allows you to receive payments via stablecoins such as USDT and BUSD, so you needn’t worry about crypto volatility. Even if you’d rather accept other coins, Cwallet has an in-built instant swap feature that allows you to swap crypto assets for free.
Too good to be true? Wait till you hear more!
Cwallet also allows you to track and manage your payment records, allowing you to view payment history, manage invoices, and monitor your account balances.
In short, the Cwallet Request Tool provides businesses with an easy and convenient way to accept payments from anywhere in the world, eliminating the need to worry about exchange rates or taxes and allowing you to focus on growing your business and serving your customers.
Using Cwallet services is absolutely free! Try the Cwallet Request Tool for your international payment needs, and I bet you’ll marvel at how much you can save before the end of the year! Check it out now!