While choosing payment methods, small businesses may come across multiple options. Each of the choices available has various strengths and weaknesses, and entrepreneurs should choose one that will efficiently serve them. As a small business, a payment option that you should consider is the one that accepts cryptocurrency. The method is used to receive or make payments in the form of digital currencies. Wondering why you should adopt this method? Please keep reading to discover the benefits that you can enjoy if you adopt cryptocurrency.
Why your business should accept Cryptocurrency
When conducting business, you want a payment method that is fast, borderless, and affordable. Cryptocurrency has all the attributes mentioned above, making it one of the best payment techniques available. The main reasons your business should choose this method includes:
The attraction of new clients
Multiple businesses are in the eCommerce space, and the competition can be stiff. Smart entrepreneurs can research to discover the tactics they can apply to attract clients. They can analyze their potential clients’ demographic and psychographic attributes to understand them and tailor their products/services accordingly.
One of the qualities that they can embrace that can set them apart is being innovative. Cryptocurrency is a new way of making payments, which many businesses are yet to accept. So when you add it to the list of your payment methods, you distinguish yourself from the rest. And many clients may choose your products or services. Ultimately, you’ll soon start witnessing profits hikes and high levels of client acquisition and retention.
Affordable transaction expenses
High business costs can eat into your profits. And one of the expenses that businesses need to watch is the cost of the transaction. Fortunately, cryptocurrency has come to save you: It’s is a free method of receiving or sending payments. The method is decentralised and lacks a regulatory authority to impose transaction charges. Furthermore, the cryptocurrency method is quick as transactions are completed within no time, regardless of geographical location.
Reduction of fraud
Credit cards enable people to make payments without their physical presence. They have boosted online businesses’ growth because they enable businesses to engage with clients regardless of their location.
A significant downside of credit cards is that they’re prone to fraud. Some vendors are wary of engaging clients out of their country, while specific businesses don’t allow worldwide payments.
Cryptocurrency counteracts this issue because of the way its system works. It’s is built on blockchain technology, which delivers final transactions without the risk of reversal.
Additionally, cryptocurrency doesn’t provide credit or debit. This ensures that you can’t use what you don’t have, which prevents scams and chargebacks.
Accelerated sales globally
Cryptocurrency enables their businesses to be accessible by international clients. Thanks to the digital currency’s decentralised nature, cross border transactions are made almost instantaneously. The currency has overcome the challenges of cash flow on a worldwide scale. With this payment system, you can no longer wait for many days to complete transactions. Clients make use of software like bitqs.app, which accelerates their transactions.
The attraction of a booming client demographic
The digital currency market space has a staunch and ever-expanding family of miners, traders, and inventors who want to see the technology successful. This community of enthusiasts is willing to support any business that embraces crypto. Therefore, when your business accepts cryptocurrency as a payment mode, it’s likely to experience a jump in client base and retention. Thanks to the new community, your business will discover a new income stream that you can enjoy for a long time.
Open new revenue streams
If you adopt crypto on a small-scale, you can enhance your income flows for a long time. However, smart businesses understand that there are multiple ways of benefiting from the crypto model. One powerful strategy you can use is crypto mining. Besides enhancing innovation, crypto mining can massively improve your business’s income flows.
Facilitation of client confidentiality and security
While advancement in technology has enabled businesses to conduct multiple businesses online, client information is exposed to scams and specific government authorities. Each year, many businesses fall victim to scammers who steal millions of money from them.
Research shows that some businesses are operating online encounter major scams that may drain their entities. For instance, studies show that credit card fraud costs merchants approximately $190 billion yearly.
The use of credit cards leaves behind an elaborate financial record that the scammers can use to accomplish their plans. Such exposure can attract fraudsters who can steal from the clients or use the information for other malicious intentions. These challenges, however, are overcome by cryptocurrency, which is anonymous in nature. So when you adopt this mode of payment, you enhance the safety of your clients. Most clients may use your products or services because you accept a secure payment technique.
Reward schemes not only stimulate client faithfulness but incentivise more sales. Crypto provides an elaborate reward program for clients who buy products and services through it. Through the reward scheme, you can also partner with businesses targeting the same demographics for more growth.
There is a steady growth in digital currencies. If the present growing trend holds, blockchain will eventually be mainstreamed. Like any innovation, early adopters will reap substantial perks than those who embrace it later.
Therefore, by adopting cryptocurrency now, owners of small businesses can understand how digital currency works and streamline their procedures to accommodate it.
No waiting time
With this payment method, you don’t need to wait for your transactions to be complete for a long time. This is because the crypto is based on a decentralised technology, which lacks a central authority to govern its operation. Therefore, transactions happen much faster compared to using credit card transactions. And this is good news for all the small businesses that require their transactions to be completed faster for smooth operations.
No payment issues
Some clients can be mischievous and dispute your services after paying for them. This means that you’ll have to return their money. However, crypto transactions are final, and clients can’t start disputing them later after transactions are complete. In case you’ve encounter clients that dispute their credit payments, digital currency would work well for you.
Like other standard currencies, virtual currencies can waver in value. Their fluctuation can be more pronounced compared to gold, cash, and other commodities. Although this oscillation can be a significant downside for digital currencies, it can also have a massive upside. You can view cryptocurrency as an investment opportunity to wait for the value of your assets before trading them.
Offers an additional payment option
Clients prefer businesses that offer them multiple payment options. Cryptocurrency can be an additional method on the list of your payment methods. Clients can also view your business as forward-looking and innovative, which further attracts them to your offerings.
Research shows that approximately 25% of clients abandon their virtual shopping carts because the business lacks their preferred mode of payment. Therefore, the addition of digital currency can improve conversion and sales rates.
Customisation of transactions
In standard dealings, professionals like brokers, legal representatives, and other go-betweens can make a simple transaction complex and expensive. Also, such transactions have paperwork costs, commissions, and brokerage charges. However, cryptocurrency payment has done away with the requirement of these middlemen.
Virtual currencies can be an effective method of effecting contracts without the need for third-parties. When executing contracts, middle-men, such as the notaries, lawyers, and brokers, can be costly. Small businesses, especially in the real estate market, can cut costs if they accept cryptocurrency.
Unlike fiat money which can be subject to multiple rules of the bank, cryptocurrency gives users the autonomy to use the assets they want. You can control the way you use your money without any external authorities. This is a plus for small businesses that require more autonomy to expand.
Specific clients require a high level of discretion when making payments for particular services or goods. They don’t want their transaction information to be traced to them. Unlike credit cards that use information that can be identified with the client, the cryptocurrency information may not be associated with your identity. Therefore, small businesses operating on niches like CBD and magic mushrooms should consider accepting this payment mode.
Digital currency payment systems operate on a peer-to-peer basis, meaning that you can send or receive payments from anybody on the system in the world. You don’t require any approval from any authority to complete your transactions.
Small businesses in the eCommerce space require multiple payment methods to engage their clients well and increase conversions and sales. The standard payment methods are slow and may expose information to third-parties. A cryptocurrency system can overcome the challenges mentioned above because of its high-level of security and anonymity. There are also other perks of digital currencies, such as being fast, more discrete, cheap, and the possibility of attracting more clients.