Today, most businesses prefer to accept digital payments over cash or credit card payments. Even though the reasons are very clear, the adoption of digital payments by businesses is still very slow. This has a lot to do with the fact that many business owners are reluctant to adopt new technologies and processes out of fear of losing customers or revenue.
But with the rise of cryptocurrencies, this apprehension has become unnecessary as cryptocurrency payments are now preferred by almost all businesses. In this blog post, we take a look at why crypto payments are preferred to traditional payment systems:
Crypto payments are cheaper than traditional payment methods
One of the most important things to remember about cryptocurrency payments is that they are cheaper than traditional payment methods. If you are a small business with low expenses and a low threshold for risk, cryptocurrency payments can be a great option for you.
A large percentage of cryptocurrencies are not traded on any specific market, so there is little to no extra cost for you when sending funds across borders. Even if you have to pay a fee for each transaction, the funds will ultimately be cheaper for you to accept than if you used a traditional payment method.
The versatility of cryptocurrency payments
Cryptocurrency payments are not just for large, Western-based businesses. There are numerous opportunities for small and medium-sized businesses to benefit from the increased adoption of cryptocurrency payments. Many cryptocurrency exchanges offer small businesses the opportunity to buy and sell cryptocurrencies using local currency.
For example, you can buy and sell Bitcoin at Biti Codes. Additionally, you can find numerous online marketplaces that allow you to buy and sell goods and services with cryptocurrencies. These include Bitcoin Code, BitQT, Binance, and a few other major exchanges. Numerous online stores accept cryptocurrencies as a form of payment. For example, Overstock.com uses cryptocurrency payments to process orders.
High transparency and security
Transparency and security are also two important factors that businesses look for in a payment method. Transparency refers to the ability of businesses to see which customers have made which payments using which methods. For example, let’s say a business only allows customers to make cash payments. If customers don’t know which cash payments have been made by other customers, or whether the total amount of all cash payments has been spent by all customers, then those customers have little chance of successfully disputes with the business over the final bill.
On the other hand, if a business only allows card payments, then every payment has to be recorded. This could take the form of an internal accounting record or an email to the customer’s accountants. Even though a business may require this level of transparency, it can become an issue if customers are unaware that their card payments are being recorded.
You can have instant, free, and low-cost international money transfers
Another big advantage of cryptocurrency payments is that they are instant, free, and low-cost. You do not need to hold any stocks or bonds to be able to receive money from abroad. All you need to do is to find a reliable cryptocurrency exchange and sell your coins.
You can choose from a wide variety of cryptocurrency exchanges that have various fees, withdrawal times, and security risks. If you are sending funds to a non-U.S. account, make sure that you check the seller’s verification process and make sure that you are happy with the results before making a transaction.
Businesses can accept cryptocurrency payments on a case-by-case basis
A final factor that businesses take into account when deciding between a digital payment method and a cash payment is the level of risk involved. Some payment methods, like cash, are inherently more risky than others. If a business accepts cash payment, it may end up with a lot of cash that it has no reason to keep.
If a business instead started to automatically charge a cash fee to all payment methods, it would easily end up with a pile of cash that it has no reason to keep. This is why businesses can accept some cryptocurrency payments on a case-by-case basis. For example, a business may only accept cash payments in an emergency. It may not want to take any risk that a cash payment might be lost or misrouted.
Final Thoughts
Although there are still several issues that need to be worked out before cryptocurrencies can be integrated into the everyday lives of consumers, businesses, and banks, there’s no doubt that they are taking the world by storm. Businesses are starting to discover the advantages of accepting digital payments, and they aren’t the only ones who are taking note.
Several large businesses are now accepting cryptocurrency payments. This is great news for the digital currency community as a whole, as it shows that more and more people are starting to see the benefits of accepting cryptocurrency payments. With that, it’s time to turn your attention to how you can begin to use these new payment methods within your business.
