Why do businesses need to accept payments in cryptocurrency?
The world is undeniably moving towards a digital ecosystem. And with the growing popularity of cryptocurrencies, more and more companies are starting to accept them as a form of payment.
According to Michael Foster, co-author of localethereum, Ethereum’s decentralized peer-to-peer exchange platform, “cryptocurrency allows cheap and near-instant transactions without borders. This allows customers all over the world — even those who do not have access to traditional banks but have access to the Internet — to buy your company’s services or products.”
5 economic reasons to start accepting payments in cryptocurrency
Cryptocurrencies are versatile, secure, and can be used to buy and sell goods online. Many industries like travel, clothing, food, and others have already started accepting crypto payments.
Let’s take a look at how accepting cryptocurrency payments can help your business grow and prosper. We have selected 5 main reasons why it is profitable for your business to start accepting payments in cryptocurrency:
1) Reduced losses. Companies have to incur large losses due to chargebacks. If customers are paying with cryptocurrency, crypto payments go into an immutable public ledger. Therefore, by accepting crypto payments, entrepreneurs can protect themselves from potential fraudulent chargebacks.
2) Instant transactions without borders. Small online retailers and independent consultants often don’t sell their products and services internationally due to high cross-border transaction fees. Each payment is calculated at the time of the transaction. Therefore, when a buyer pays in bitcoins, the seller receives them and can immediately convert bitcoins to a desired fiat currency.
3) Reduced commission costs. Accepting cryptocurrency payments means lower fees compared to traditional payment systems. There are debit card fees, credit card fees, ATM fees, transfer fees, overdraft fees, and more.
Imagine that for every 100 dollars you spend, 4 dollars goes to credit card issuing companies.
There is no such thing in payments with cryptocurrency. Even leading crypto payment gateways like Bitpay charge as little as 0.5% to 1% per transaction, which is nothing compared to traditional payment processes.
4) No third parties. There are no third parties involved in the transaction, unlike when it comes to traditional payments. After a successful payment, the transaction amount goes to your wallet, which can be accessed immediately. You can then convert your cryptocurrencies into a chosen fiat currency at the end of each transaction or according to another customized schedule.
5) Expansion of the customer base. A business that accepts cryptocurrency will attract new customers. Tech-savvy clients, millennials, and people who want to control their finances use cryptocurrency more and more every year. This is a wide audience that is constantly growing.
You can attract attention to your business through seller directories that list companies who accept cryptocurrency.
If you run a business that can provide services or ship internationally, by accepting cryptocurrency you can easily accept payments and be confident that the transaction is complete and accurate.
Cryptocurrencies are becoming more and more popular around the world, both among companies and consumers. They enable fast and secure transactions, so it’s no surprise that customers who are mindful of cyber attacks prefer them.
A business that accepts bitcoins can significantly increase its pool of potential customers.
In turn, Cratos crypto exchange will soon allow its corporate clients to work according to the C2B model by providing a payment form for clients and allowing them to accept, exchange and withdraw funds conveniently and quickly.