Many business owners are still reluctant to accept cryptocurrency partly because they are not quite sure if it holds more value, or if it’s more convenient to store and liquefy than fiat money (normal money).
Cryptocurrency offers a lot of benefits for businesses and service providers such as lower transaction fees, secure payments, and other financial opportunities.
Let’s go over some of the top reasons to get cryptocurrency flowing through your business.
A study completed by Bankrate shows that younger generations are more likely to choose crypto for long-term investments and many of them believe that crypto will overtake fiat in a few years.
Eventually, this generation will make up the majority of the workforce and that means it’s only a matter of time before there’s an increased demand for business to allow payments made in crypto.
That’s why it would be a good idea to start accepting cryptocurrencies for your business as early as now.
You’ll have to learn something ‘new’ but one way or another, digital currencies are very likely here to stay so being on point with the latest payment methods and hardware is a great move!
Also read: What's future of Cryptocurrency?
Whether you are busy selling ‘adult toys’ or something a bit less racy, you will often come across a customer who for whatever reason would like their purchase to stay ‘off the books’.
Cryptocurrency payments don’t need to store the same level of information that Visa or Mastercard will do. A transaction on the blockchain typically just shows funds moving from one anonymous wallet address to another, no names!
If privacy is a very good selling point for your business, look into making sure you can accept payments using ‘privacy coins’. These are cryptocurrencies specifically designed for anonymous payments.
One of crypto’s biggest advantages is that it has the potential to grow exponentially.
To put it into perspective, the price of one Bitcoin in 2010 was less than 1 US dollar. Today, it’s worth a thousand dollars per coin.
That could mean that the Bitcoin or cryptocurrency you receive from your customers can be worth even more money as time goes on!
Obviously, you need to consider the risks to your business before storing payments as crypto. If prices crash, will you still have enough capital to maintain cashflow?
If not, then it would be worth choosing a payment solution that instantly converts any cryptocurrency you receive into fiat money.>
At some point, if you are running a business-to-consumer offering (especially for online services), it’s inevitable that some customers will falsely report your business to their credit card company so that they can ‘enjoy your products and services for free’. This is called chargeback fraud and it’s commonly associated with fiat credit cards.
Sadly, businesses will often take a loss for these situations since it can be more expensive to settle a legal dispute with a customer or it’s just too much of a hassle. Although with some preparation and a strict and transparent checkout process, they can actually be fought fairly easily.
Transactions made with cryptocurrencies, on the other hand, cannot be repudiated (disputed) and transactions are verified as final on the blockchain.
International money transfers often have a hefty fee and depending on the foreign exchange rate it can get even worse.
Payments made with crypto, on the other hand, do not have any of these nasty foreign exchange fees or other sneaky bank charges.
Not only that, but many payment gateway providers (Stripe, Paypal, etc) will charge a service fee for every transaction. But with crypto payments, transactions can be much cheaper or even free.
If you find yourself spending too much on banking and payment services, definitely look into your options with crypto.
Also read: What is Blockchain Technology and Blockchain Technology Future Scope
International payments using fiat can take a few days to a few weeks to complete. This is because many transactions need to be processed by local and international banks.
With cryptocurrency, payments can be done very quickly. Simply give the customer your business’ wallet address and you’ll receive the money in a few minutes.
Great for you and great for the customer who is eager to move ahead!
Today, thousands of people own crypto. Some of them even have access to cryptocurrency cards which makes it easier to purchase goods and services.
Many of these cards incentivise customers by giving them cash back rewards for every transaction (some as high as 3% or more). So, it’s no surprise that many of them would rather pay using their crypto card than a regular card.
However, these potential customers still have trouble finding establishments that will accept crypto.
If your business is the only store that accepts crypto payments in your local area, then it’s more likely that customers will choose to spend their money on your products or services. Any edge you can find over your competition is good for business!
Businesses have a lot to gain by embracing cryptocurrency. Quick and easy transactions, better security, and lower costs are just some of the benefits it offers.
Not to mention that more and more people are getting interested in crypto every day. In the future, it’s quite possible that in time, cryptocurrency will be the preferred payment option.
Start adapting to this trend early so that you will have an edge over your competitors.
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