If you are considering accepting crypto in your business, it’s probably because you have realized that it has undeniable potential. Lots of businesses have already integrated the payment method, but the majority are still sticking with the familiarity of fiat currency. Sure, the price of Bitcoin and altcoins can shift quickly, but accepting crypto will still put you ahead of the curve and help you maximize profits.
In this article, we’ll look at four compelling benefits you stand to gain by embracing crypto as a small business.
- Reduced Transaction Fees
As cryptocurrency operates on a decentralized network, the payment method automatically cuts off intermediaries such as banks and credit card providers, along with their associated costs. Normally, you would be charged some amount for every card swipe, then a 2% to 4% charge on the transaction amount. When you consider the number of transactions you do per day and compound it in weeks and months, this can add up to quite a huge sum.
When you start accepting crypto, you will do away with the intermediaries as transactions are peer-to-peer. Sure, you may need to integrate a payment processor and convert your money to fiat currency, but this only attracts a small charge of about 1%. The difference is quite significant, so you will end up saving a lot.
- You’ll open up to New Customers
When you start accepting cryptocurrencies, you open doors to a whole new world of customers that would otherwise not have purchased. This is because, with the crypto community growing rapidly, enthusiasts want to transact with their favorite digital assets. If you start accepting crypto, you’ll have opened your business to them, and it will also send a message that you are tech-savvy to other users going through your products.
On top of that, you will have removed technical barriers that deter users from other parts of the world. For example, if I’m in Asia and you are in the US, I will have to convert my money to USD through my bank if I’m paying via card, which means an extra charge. Paying you via Bitcoin won’t require me to do that, so your products or services will become more attractive to me.
- Lower risk of Fraud and Chargebacks
If you’ve been in business for a while, you are most likely no stranger to the headaches and financial losses caused by fraud and chargebacks. In both land-based and online businesses, fraudulent users can purchase a product, then file a chargeback. This usually comes with a lot of inconvenience for the business, as well as a significant financial impact. Usually, the entire amount is deducted from the business account by the bank, and then a chargeback fee is added. When these sums add up, they can have a significant effect on the business’s finances.
If a user pays via crypto, all these are avoided. Due to the encryption used at every stage, a blockchain transaction can’t be altered for any reason. Payments done via blockchain also can’t be reversed, eliminating the risk of chargeback.
- Protect Your Customer’s Privacy
In an age where online privacy and security risks are increasing, internet users are becoming more privacy-oriented. People today are not as inclined to give their credit card information to many websites as before, hence the growth of prepaid cards and crypto payments. Crypto payments allow users to pay for goods and services while keeping their personal information private. To transact, only a digital wallet address is needed. Compare this with credit and debit cards that require users to provide their names, address, and card details.
And in light of the ever-increasing stories about data breaches and privacy violations, you will also be sending a strong message to your customers that their privacy matters. This can build trust and loyalty, attracting privacy-conscious individuals who seek businesses that prioritize protecting their personal information.
