Business

Cryptocurrency as a Payment Option: What Businesses Need to Consider

In the space of less than a decade, cryptocurrency has morphed from a well-kept secret to one of the most popular investment trends around.

With the technology behind it booming and an ever-increasing audience willing to put their trust in it, it has gone from strength to strength.

It’s little surprise, then, that the world of commerce has found ways to make it work for them. Ever willing to capitalize on opportunities, many forward-thinking businesses are beginning to accept popular cryptocurrencies like bitcoin as a form of payment.

While this might sound complicated to the average entrepreneur, those who have given it a go argue that it’s even simpler than accepting credit cards, with most agreeing that they would recommend such a move to other business owners.

If you’re wondering what it is that’s got them sold on it, here are just a few of the benefits you might like to know about.

Before you start

While we will go on to discuss the many advantages of using cryptocurrencies, there are some potential drawbacks you should know about before making a decision.

Foremost among these is price volatility, which can occasionally work against you. That being said, it has the potential to act in your favor too, especially if you view it as an investment opportunity that could help you to grow your funds.

The best place to learn about this is on one of the many sites where you can buy cryptocurrency, as these provide a handy insight into how prices can fluctuate.

Lower fees than credit cards 

Most online businesses use credit cards as their primary method of payment, but these do have some drawbacks – namely, that you’re usually charged a fee to take advantage of such services.

These costs come not only from the credit card company itself but a number of other intermediaries, meaning they can end up taking a significant chunk out of your earnings.

With cryptocurrency, these middlemen don’t feature in the equation, with costs generally totaling less than one percent (compared to the three to five percent you’re used to paying).

Increased security and greater privacy 

Source: Pixabay

The cost benefits of cryptocurrency are appealing in themselves, but you might also like to know that both you and your customers could benefit from increased security and greater privacy too.

Unlike credit card payments, which are a prime target for hackers and fraudsters, crypto transactions keep you much better protected. That’s because they’re entirely anonymous, meaning there’s no sensitive data for criminals to steal.

Payments are final and irrefutable 

While credit cards are good news for consumers, in the sense that they afford them superior protection in disputes between buyer and seller, the downside for retailers is that this can disadvantage them.

Since customers are able to dispute payment if they claim to be unhappy with your goods or services, you can sometimes find that you fulfill your part of the transaction without receiving payment for it.

With cryptocurrencies, this simply isn’t possible; transactions are final, irrefutable, and can’t be contested by the purchaser.  

Cryptocurrency is internationally accepted     

Source: Pixabay

Another big upside to offering cryptocurrency as a payment option is that it’s globally accepted.

This means that no matter where in the world your customers are, they can use it to transact with you, and because this type of currency is decentralized and doesn’t have a government to regulate it, you won’t have to suffer the drawbacks of foreign currency transaction fees or exchange rates.

This is, in large part, one of the reasons why crypto has become so popular: because it’s a single form of currency that holds equal value across the globe.    

Cryptocurrency could help you to attract new customers

Cryptocurrencies could also broaden your appeal to another market. Foreign customers aside, accepting it as a payment method holds a major appeal to those who are fans of the tech.

With this group growing at a rapid rate, there’s an increasing number of individuals who are actively seeking businesses that accept digital funds as payment, and you could be one of them.

Not only would this broaden your appeal in the instant, but it would put you one step ahead of the game long term too.  

When it comes to accepting cryptocurrency as a payment option, there are many good reasons why businesses might want to consider it, from broadening their appeal to gaining a new and potentially lucrative customer base.

Whether it’s the right choice for you is a personal decision you must make on your own, but we’d certainly say that it’s worth thinking about for ambitious entrepreneurs who are looking to grow their venture and invest in their future. 

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