Cryptocurrency is another way businesses can accept payments from customers or pay vendors. Wondering if accepting cryptocurrencies is the right fit for your business?
- It will save you money.
Cryptocurrencies are decentralized, so they do not require a bank to verify every transaction. This means your business will eliminate those fees, saving 2 to 5 percent on each transaction. This is also the case with companies like PayPal and Stripe. No more sharing your hard-earned revenue with financial institutions.
One important thing to note is that many merchant wallets charge a flat fee of around $30. There are decisions all entrepreneurs will face, and usually those revolve around whether you’re ready and willing to embrace change and the learning curve that comes with it.
- Transactions will process quickly.
It’s frustrating to wait for funds to become available in your bank account. You don’t have to wait with cryptocurrency transactions. In many cases, the transactions occur in real time or within a few minutes. There aren’t various banks slowing down the payment process. High transaction speeds are a bonus; in today’s world of instant gratification, no one likes to wait.
- The currency works worldwide.
There are a lot of benefits to an international currency, and it’s especially helpful if your business exports services and goods or purchases materials from other countries. Bitcoin and other cryptocurrencies help you avoid the expensive foreign transaction fees or exchange rates.
- You will avoid fraud and chargebacks.
Cryptocurrency is comparable to cash in that you either have the funds available or you don’t. You should also know that all transactions are final when you use cryptocurrencies, because transactions are added to the blockchain via mining.
This system verifies funds and makes it next to impossible to spend more than you own. When paying with cryptocurrencies, both parties have to approve each transaction. As a result, there are no disputes to worry about and chargebacks will no longer happen.
- You can acquire new customers.
Cryptocurrencies have some major followers – more and more people are learning about it, embracing it, and even turning to companies like SwissBorg to help manage crypto assets and learn about investment solutions. As your customers become familiar with and begin to use cryptocurrencies, it will really help your business if you accept digital currencies.
While this may still be a niche market, it won’t be for much longer. The more payment options you offer your customers, the better. Not only will you attract a wider customer base and more shoppers, you’ll also increase the chances that they all follow through with their intended purchases. According to a survey by shrink your shopping card abandonment rate so you can increase your revenue.
- Paper options will slowly become a thing of the past.
Digital wallets and cryptocurrencies are growing steadily with the blockchain and Bitcoin both having banner years in 2016. This trend continued through 2017 and is anticipated to continue to grow as people become more familiar with digital currency.
While it may seem overwhelming for a small business, try to embrace this change. It makes a lot of sense for you and your business to become early adopters of cryptocurrencies so you can become familiar with it sooner than later. If you resist the change now, you’ll just delay the inevitable. Set yourself apart from your competitors by welcoming fintech.