Should Businesses Start Accepting Cryptocurrency As Payment?
The financial ecosystem only continues to change at a dizzying rate. Many businesses struggle with deciding on when and how to integrate new payment offerings on their platform.
Some simply like the familiarity of cash, cards, or checks and refuse to offer different options. Others are curious about the convenience of processors like Square or Apple Pay, even if it takes an accounting team some time to get used to.
Deciding to accept cryptocurrencies, on the other hand, can seem like a much more daunting task. The benefits of cryptocurrency are almost limitless due to its ability to foster cheap, borderless transactions that settle almost instantly.
However, the process of managing and keeping track of crypto transactions can feel overwhelming to those unfamiliar with the digital currency world. Others argue about market fluctuations that can send the price of a coin spiraling in just seconds.
Despite concerns expressed by some, accepting cryptocurrency is a smart and savvy move for any business. Platforms like CryptoExchange.com make it easier than ever for just about anyone to buy and sell coins.
Entities who offer more payment options often enjoy better conversion rates. Adding crypto to the list of options opens up businesses to younger and different demographics who might not have been as interested in a company’s offering before.
Keep reading to learn more about why businesses should start accepting cryptocurrency as payment.
One of the best reasons for any business to accept crypto has to do with security. While traditional payment processors do offer a wide range of protective measures to govern transactions, they are still susceptible to hacks and other issues. With cryptocurrency, all transactions are stored on the blockchain, which means every payment can be verified and tracked. Businesses who decide to accept crypto now have a highly secure payment option that is also private, appealing to certain buyers who are concerned about their digital footprint.
Cryptocurrency transactions also settle much faster than traditional ones do with drastically lower fees. Traditional card payments incur a processing fee in addition to fees from the issuing or receiving bank or company.
These issues only magnify if payments are being made across borders, with different banks, or if currency conversion occurs. In contrast, crypto transactions are usually very low no matter who the sending or receiving party is. This is a particular advantage to a business that has a large number of foreign buyers.
Traditional bank transfers can sometimes take days to complete, while scheduling a trip to the bank to deposit a check can eat up valuable time. Crypto transactions are processed in an extremely fast manner, even when large amounts of money are being transacted.
Fast settling times and low fees help businesses keep more money in their pocket and spend less time trying to navigate the intricacies of different payment platforms.
Businesses that are in an industry deemed high-risk by banks and credit card companies stand to gain immensely by offering cryptocurrency as a payment option. Often, businesses associated with online gaming, firearms, and the pharmaceutical industry run a higher risk of chargebacks.
Some payment processors might even refuse to offer service, and if they do, charge much higher fees that eat into a company’s bottom line.
There is no chargeback mechanism with cryptocurrency, meaning businesses in any industry can transact with virtual currency and enjoy the immense benefits without having to worry about how a bank or credit card company will react to a transaction.
Some businesses opt to sign up for a payment processor like NetCents to accept crypto payments specifically. Others simply put a wallet address on their website and ask customers to reach out with proof of purchase.
Right now, the vast majority of traditional payment processors do not accept cryptocurrency as an option. One exception is Square, which permits customers to use Bitcoin via CashApp. As cryptocurrency continues to rise in popularity and notoriety, businesses would be prudent to accept virtual currency as a payment option.