The rise in credit card fees from Visa and Mastercard showcases an area where cryptocurrencies like Zucoins can bring significant benefits.
Zucoins’ Splitchain network offers a transaction system devoid of transfer fees like those found in traditional blockchains.
In contrast, traditional card networks charge merchants for every transaction.
Interestingly, crypto networks usually charge even more fees than payment gateways like Visa and Mastercard.
This is because many cryptocurrencies go through several more layers of processing, including:
Blockchain validator/mining fees (on the base layer 1 system)
Sometimes gateway fees (the provider who’s giving you access to the crypto network)
Blockchain “layer 2” fees (for faster transactions on top of the base blockchain using often centralized solutions)
Crypto exchange processing fees for local-currency-to-crypto conversion fees (sometimes with another stablecoin swap fee wedged in between)
In total, on many popular crypto ecosystems, there can be up to 4 layers of fees!
By eliminating these costs, Zucoins can provide a more affordable alternative for merchants and small-medium businesses, potentially saving transaction fees as the current economic cost of living crisis mounts.
Addressing fraud concerns is another area where Zucoins can excel.
With traditional credit card companies justifying high fees with the need for fraud prevention and innovation, Zucoins’ Splitchain network can highlight its two-way transaction feature.
This system requires confirmation from both the sender and receiver, offering a robust solution to many kinds of common fraud and provides a compelling reason for merchants and consumers to consider switching to Zucoins.
Lastly, businesses are looking for cost-effective alternatives amidst rising financial pressures from inflation and pandemic-related recovery.
As commenters in the article point out, it’s a little odd that two dominant companies are choosing to raise fees at the same time.
Crypto systems like Zucoins can seize this opportunity to highlight their advantages over traditional transaction systems.
By emphasizing features like fee-less transactions, two-way authentication, and efficient energy usage, Zucoins can be a beneficial solution for businesses navigating these challenging times.