In an industry that constantly faces financial hurdles, stablecoins have been presented as a revolutionary alternative for wellness businesses seeking payment solutions. But is this option as beneficial as it seems? Let’s break down the real cost for your customers and the risks associated with these transactions.
The Hidden Cost of Stablecoin Payments
While stablecoins claim to offer fast and seamless transactions, many businesses overlook the significant costs imposed on buyers. Every single purchase made with stablecoins comes with a $10 cash advance fee—no exceptions. Whether your customer is spending $50 or $500, they are always hit with this additional charge. This fee can quickly deter repeat customers and increase overall purchase hesitancy.
Additionally, many stablecoin transactions involve fluctuating exchange rates and conversion fees, further increasing the cost burden on buyers. Unlike traditional payment solutions, where the price at checkout is the price paid, stablecoin transactions often introduce unpredictable costs that neither businesses nor consumers can fully control.
The Legality of Merchant KYC
One of the most alarming aspects of stablecoin transactions in the wellness space is the lack of Know Your Customer (KYC) requirements for merchants. Why does this matter? Simply put, no KYC means no legal compliance. By avoiding identity verification, stablecoin payment processors are bypassing essential regulatory safeguards, making transactions riskier for both businesses and consumers.
Without proper KYC measures, businesses expose themselves to potential fraud, chargebacks, and even regulatory action. Governments and financial institutions are increasingly cracking down on unregulated transactions, and wellness merchants who use these unstable systems may find themselves caught in legal crosshairs.
If your business operates legally and ethically, why work with providers that intentionally hide in the shadows? Transparency and compliance should be non-negotiable for any business looking to scale and sustain its operations.
Stablecoins and Banking Challenges
Many wellness sellers have already faced difficulty securing reliable banking relationships. Associating your business with a payment method that lacks regulatory oversight can make things worse. Banks and financial institutions are wary of transactions tied to unverified merchants, which can lead to account closures and frozen funds. Stablecoin transactions might appear convenient at first, but they can create long-term financial roadblocks that outweigh any short-term benefits.
Work With Partners Who Understand Your Industry
Wellness sellers deserve better than unstable and risky payment methods. That’s where WAAVE comes in. Our payment solution is designed specifically for high-risk wellness businesses, ensuring compliance with federal, state, and city laws. With WAAVE, you don’t have to compromise on security, legality, or customer trust.
Unlike unregulated stablecoin providers, WAAVE ensures your transactions are secure, compliant, and free from unnecessary fees that drive customers away. We work with trusted financial institutions, making it easier for wellness sellers to grow their businesses without fear of hidden costs or regulatory scrutiny.
Choose a payment provider that understands your industry and supports your growth—without hidden fees or legal gray areas. WAAVE ensures that you stay ahead with seamless, compliant transactions that protect both you and your customers.
