Why It's Time For Your Business To Accept Crypto Payments When done right, crypto payments can be a gold mine for businesses. Isn't it time you got on board?
By Richard Iamunno Edited by Micah Zimmerman
Opinions expressed by Entrepreneur contributors are their own.
Cryptocurrency is nothing new. While many people discuss the digital asset as an enigma, it is a medium of exchange worth significant value. True, digital coins do not have the same tangible backing as cash, but the security of design, and the blockchain setup, create (or should create) a level of confidence.
If your business has yet to embrace crypto as a form of payment, it is falling behind and missing valuable opportunities to thrive. While not all companies yet embrace crypto, those that do experience unparalleled access to otherwise distant consumer pools.
The number of companies embracing crypto is rising, including such names as Gucci, Paypal and Visa. Permitting crypto payment options can expand your market share and improve your position in the marketplace; it can also demystify this legitimate form of payment.
The reasons crypto is right for your business model
It is easy to look at the failings of FTX and lose confidence in the system, but investors and businesses need to review the market's otherwise successful history. Bitcoin is only one asset out of thousands that continues to outperform investor expectations. The folly of one digital coin should not deter innovative businesses from embracing a payment option that proves time and time again its ability to persevere.
If your company wants to look toward the future, it must embrace crypto because it isn't going anywhere. The financial "new normal" demands that businesses adapt and embrace changing structures. Besides the need to adjust, there are many reasons businesses benefit from accepting crypto payments.
Related: 5 Tips for Using Cryptocurrency in Your Small Business
1. Decrease fraudulent chargebacks
Many companies are victims of friendly fraud or mistaken consumers. In the digital subscription age, many consumers don't remember all their purchases and may report an issue of credit card fraud where there is none. Unfortunately, whether friendly mistakes or criminal, chargebacks cost businesses billions yearly.
Embracing bitcoin payments can reduce fraudulent chargeback risks. Crypto payments report to an immutable public ledger. The payment method does not allow for alteration, meaning once a transaction is complete, nothing can reverse it, eliminating the false claims of fraud on the purchase end.
Related: The Benefits of Crypto Education for Your Business
2. Increase security
Cryptocurrencies exist within the blockchain — a decentralized, distributed digital ledger. All transactions are permanent, unmodifiable, and impossible to delete. The entire crypto concept is a vision for secure monetary assets.
A business can improve the security and usability of crypto by partnering with blockchain monitoring services. Some payment processors will offer additional security measures; however, even bare-bones, cryptocurrency is more secure than credit cards and other payment methods.
Accepting crypto shows your consumers that you care about their security and yours. The additional security and finality of digital coins also provide assurances for businesses providing subscriptions or other services in a techno-focused era.
Related: Crypto vs. Banking: Which Is a Better Choice?
3. Lower transaction fees
Credit card fees present a significant thorn in the side of many merchants. Fees represent a profit loss on individual transactions. Besides the on-top percentage taken from the sale, many credit card processors also charge a nominal fee per incoming transaction.
Cryptocurrency transactions eliminate any additional fee structures when handled on the business end. If you decide to use a payment processor (recommended), you will need to pay a service fee, typically less than traditional processors will charge.
4. Improve transaction speed, regardless of country of origin
Besides transaction fees, credit card transactions take time to process. As a business owner, you do not have time to waste. Most cryptocurrency transactions occur in real-time — one of the many perks of a decentralized system.
Traditional credit card or debit card payments can take several days, depending on a consumer's location. Crypto is borderless, so location does not affect or inhibit transaction speed. Also, because the digital asset does not involve cross-country settlements or obstacles, there are no costly currency conversions.
Related: 10 Ways You Can Learn More About Crypto and Blockchain
5. Improve growth potential
The growth potential of crypto is twofold for business owners: financial and market share. Any crypto investor can tell you about the exponential growth of digital assets in recent years. For a business owner, the potential valuation increases for some cryptocurrencies are enough to embrace the payment method. Permitting crypto payments means you can potentially earn greater profits from the same volume of purchases.
Besides the monetary gains, permitting crypto also opens your business to a wealthier consumer pool and buyers who may not have considered your company before. Crypto allows for a level of anonymity and privacy that other payment forms do not. Newer, more private consumers will appreciate your business's steps to secure their privacy.
6. Taking crypto means getting cash
You get cash, not crypto, for your payment by dealing with a reputable payment platform. Trusted platforms will convert crypto payments into cash. And by taking crypto, you're making it easy for crypto holders to buy products and services, all while receiving cash in your bank account. It's a win-win and a great cost-effective opportunity to increase your revenue.
Crypto is the future and the future is now
Whether a high-end, established retailer or a small, young business, it is time to use cryptocurrency, permitting it as a payment option. Digital currency is more secure than other transaction methods and allows for growth opportunities while maintaining consumer privacy. Embrace crypto and embrace the future of your business.
