Digital currency, specifically cryptocurrency, has taken the global community by storm. The adoption of cryptocurrency across the globe has become quite a trendy topic.
Major stakeholders, including countries and businesses are in turbulence over cryptocurrency's adoption. Even amongst the turmoil, there are benefits associated with accepting cryptocurrency for your small business and owners are starting to figure that out.
Being a small business owner, you might question the significance of using cryptocurrency as a form of payment. The question is valid and you should be looking for the right answers. I will go over the benefits involving cryptocurrency and why your small business may want to consider accepting cryptocurrency for payments.
Should My Business Accept Cryptocurrency as Payment?
There have been mixed opinions over the adoption and acceptance of cryptocurrency as a form of payment within small businesses.
Cryptocurrency can be used as a significant asset throughout your business by creating more revenue. Small businesses usually lack scalability and accessibility, but is made more possible by accepting cryptocurrencies as payment.
If you are ready to scale your business at an international level and ensure that you have the resources to handle it, you should accept cryptocurrencies as a form of payment. Without a doubt, you will start attracting people from all over the world who will want to use your services, even if you are operating on a small scale.
Many benefits are associated with adopting cryptocurrencies at a business level. Efficiency and efficacy are two basic factors that are primarily improved with adopting the digital form of payments.
It is believed that ultimately, cryptocurrency shall bring promising practical implications for small businesses and their customers simultaneously. Who would not like their business to expand its reach across the international market?
With cryptocurrency, this has been made possible for all kinds of small businesses, thus providing you the opportunity to take the initiative of changing your forms of payments.
The Business Benefits of Using Cryptocurrency
Talking about the spark that cryptocurrency can bring within your business, there is much to discuss when it comes to the benefits that would follow. Although businesses should be careful over its adoption, it is viewed that cryptocurrency is a good business prospect that can bring prosperity over time.
Every company wants to go global but one of the major issues associated with the conventional banking and financial system is the hefty transaction fees across every payment.
All over the world, merchants accept credit cards as a means of payment. Credit cards, however, are also expensive for merchants. A fee of about 3% to 4% plus a few cents may be charged for each transaction.
The average retailer can expect to receive payments by credit card from 99% of their customers. Consequently, you may pay quite a bit in credit card fees.
The decentralized setup of cryptocurrency is one of the most promising features that usually encourages small businesses to add cryptocurrency as a form of payment.
Businesses complain about chargebacks more than anything else concerning credit card payments. Because of this, they are open to fraudulent and frivolous charges. Customer cryptocurrency payments, however, are final and irreversible once verified.
Selling products and expanding your markets around the globe is possible with cryptocurrency transactions. Because there are no banks involved, there is no waiting period or transfer limit, as there is with fiat currency.
The popularity of bitcoins and other cryptocurrencies makes it tempting to wonder whether the time is right to accept them as payment. These are a few reasons why accepting cryptocurrency now might be a good idea.
Different Types Of Cryptocurrencies
Cryptocurrency started off with Bitcoin but has been expanding throughout the last 10 years or so. There were around 10,000 different cryptocurrency varieties as of April 2021, however, we will go over the most popular currently.
Bitcoin - Bitcoin is the first cryptocurrency, and it is the most popular. Bitcoin is powered by blockchain technology. Users may monitor and view transactions, allowing them to conduct secure transactions. The transactions are secured by the blockchain's algorithm. Bitcoins allow anonymous transactions to take place throughout the globe because its users control sending and receiving money.
Litecoin (LTC) - This coin was first introduced in 2011. It was designed to be a cryptocurrency that could be used instead of bitcoin. It's also a global, open-source payment network that's not governed by any central body. Litecoin transactions are faster than Bitcoin transactions. Furthermore, Bitcoin has a limit of 21 million coins, but Litecoin has a limit of 84 million coins.
Ethereum (ETH) - This is a comparatively new cryptocurrency, having been launched in 2015. In addition, blockchain technology is deployed. Ethereum, in particular, is open-source, allowing developers to leverage the Ethereum network's payment system for transaction fees and services.
Ripple (XRP) - Ripple entered the market in 2012. It is a cryptocurrency that also functions as a network to enable financial transactions. You can swap whatever currency you choose with Ripple, including gold, USD, Bitcoin, and EUR. Unlike other types of cryptocurrencies, which are typically used for peer-to-peer transactions, Ripple is meant to move enormous quantities of money.
How To Accept Bitcoin Payments At Your Business?
Once you understand why you should begin accepting cryptocurrency payments for your business, you probably want to know how you should get started.
The process is extremely simple but also requires technology-specific tools. Different services are involved in the complete process of carrying out payments. One of the most integral needs is to have a crypto wallet.
Small companies should understand how to use a crypto wallet efficiently and effectively. Similar to how a physical wallet is used, a cryptocurrency wallet makes it easier for users to manage, protect, keep track of, and spend cryptocurrency as they want.
BitPay is a bitcoin debit card that is one of the most secure crypto wallets available. This platform has been operating for a long, and it believes in providing high-quality digital services to its users. BitPay can be a really outstanding solution for covering your Bitcoin payments because it accepts BTC.
Users are not limited to using BitPay as their sole cryptocurrency wallet for such purposes. They provide a variety of digital wallet options to choose from, including Coinbase, Wyre, Skrill, CoinGate, and Simplex. When it comes to using this cryptocurrency wallet, there are only a few basic procedures to complete, which include:
Receiving and accepting Bitcoin payments is a one-of-a-kind and straightforward operation. The user must first open their BitPay wallet before proceeding with the payment.
The merchant merely needs to enter the sender's address if they want to accept Bitcoin payments. The business can add or even use QR codes to scan and paste the address.
The process of using BitPay Wallet or any other crypto wallet is really straightforward and distinctive, indicating that small enterprises should incorporate such procedures into their operations. In the long term, it is beneficial to both them and their customers.
What Do You Need to Know Before Accepting Bitcoin Payments?
In the world of Bitcoin and cryptocurrencies, several businesses have made strides. The following is a list of notable businesses that have accepted cryptocurrency as payment:
- Pavilion Hotels & Resorts
- AXA Insurance
- Coca Cola
Although the portfolio of the companies is quite extensive, and some countries such as El Salvador that have taken Bitcoin to another level, there are a few things that you need to keep in mind whenever considering accepting Bitcoin payments.
One of the key market concerns to consider when using cryptocurrencies as a payment method is market volatility. Because cryptocurrency does not have the same potential backing as physical currency, it is subject to a variety of events that might cause significant changes in the market.
Where there are losses, however, there are also excessive profits. The merchant must be astute in their portfolio management, which can be improved with skill.
Furthermore, you should be aware that cryptocurrency is a relatively new trend in the financial industry that involves a number of complex technological procedures. As a small business owner, you may not be familiar with all of the technical aspects of the system. Over time, technical constraints may become more of a nuisance.
You will feel more at ease working with Bitcoin if you are savvy enough to observe the system's trends and understand more about how to overcome these technical limitations.
Many governments are undecided about whether or not to accept Bitcoin and other cryptocurrencies as a means of payment. Small business owners should research the current trends in their area and take appropriate action after conducting thorough research.
If a business owner believes that applying this technique right away would not result in the desired profit, then waiting for the right time is preferable. As a business owner, you should consider if your customers are keen to use digital currency and how they might react to the acceptance of Bitcoin and cryptocurrencies as a payment method.
You should be aware of the market's pivots at all times and adjust to all of the periodic changes that occur over time. However, the market has developed over the previous decade and is expected to continue to grow as a result of the efficient decentralized systems that this technology has enabled for both suppliers and customers.