If you want to expand your business internationally, it’s time to consider taking advantage of crypto. Many business owners are now becoming more interested in leveraging digital assets for operational, transactional and investment purposes. As a result, they are adopting the decentralized payment system known as crypto. This new type of currency was first launched in 2009 and rapidly gained popularity due to its convenience and autonomy. If you’re wondering whether you should accept crypto in your business, we’re here to tell you it depends on your company’s needs. However, embracing cryptocurrencies comes with various advantages and has the potential to help your business flourish.
Quick transactions
Banks slow down the payment process, and you must wait until your funds become available. But as a business owner, you know how valuable time is for you, so you can’t waste it. Fortunately, this is not a problem if you make crypto transactions, as they generally happen within a few minutes or in real-time. All you have to do is create an account on an exchange like Binance, where you can check the current Ethereum price or of another crypto you want to invest in. High transaction speeds are a great advantage, especially in the modern world where people seek instant gratification and don’t like to wait for a long time.
Cost-effectiveness
Over the years, in the US alone, merchants have paid over $78 billion in fees for credit and debit card processing. Due to their decentralized nature, cryptocurrencies enable transactions without relying on a bank. For your business, this means you won’t have to pay those fees, thus saving 2-5% on each of your transactions. This also applies to companies like PayPal, so you no longer have to share your hard-earned money with financial institutions. It’s worth noting that merchant wallets require a flat fee of $30. All entrepreneurs will face different decisions along the way, and they mainly have to do with the willingness to embrace change and the valuable lessons that come with it.
New customers
Cryptocurrencies have gained a solid fanbase as more people are learning about them. There is a good chance that many of your customers use cryptocurrencies, so accepting them in your business can put you in a better position than your competitors. Providing more payment alternatives to your customers is better, as this will help reduce abandoned carts and boost brand perception. Crypto is now only a niche market, but this will likely change in the future, so why wait when you can embrace innovation now? Accepting cryptocurrencies will expand your customer base and boost the chances that they will actually complete the purchases.
Increased security
Since cryptocurrencies exist on a distributed digital ledger, namely a blockchain, the transactions are unmodifiable and permanent. Crypto is all about ensuring secure monetary assets, so by accepting it, you show customers that you put security at the forefront of your business.
Because of their different nature, cryptocurrencies are an ideal payment option. Their value is detached from the traditional financial system, so they are not susceptible to the same risks. While it is true that crypto hacks have been an issue in the past years, they don’t have the same consequences on a company’s assets as financial schemes do. Moreover, it is pretty challenging for hackers to break into a decentralized exchange and access the tokens.
Reduced fraudulent chargebacks
Customers can forget all their purchases and report inexistent credit card fraud, leading to expensive business chargebacks. Fortunately, it is possible to avoid this by embracing crypto payments. Since the transactions are made on the blockchain, the payment method doesn’t enable alternation, and once the transaction is finished, it can’t be reversed. This helps eliminate fake claims regarding fraud.
Access to global markets
Cryptocurrencies simplify commerce, not only domestically but also internationally. They remove many limitations of doing business internationally while facilitating the payment process. A transaction is performed securely even if it occurs outside the country’s boundaries. Hence, it becomes easier to avoid the issues of traditional financing while receiving international payments from clients. By expanding into global markets, you can increase your revenue. This means it is unnecessary to overprice your goods or give up a portion of your profit.
What are the steps to accepting cryptocurrency in your business?
In most cases, accepting cryptocurrency is a good idea, as more customers are using it, and you can enjoy many perks, including lower fees, real-time bank balances, and the irreversibility of transactions. If you’re ready to embrace crypto payments, the process is straightforward. It will take around 30 days to begin and complete the process, from getting educated about it to finally integrating it into your operations. Here are the steps you should follow:
- Create a merchant wallet account. Setting up a wallet takes only a few minutes, but once you do so, you’ll have access to customizable portals, and thus, you’ll be able to transform crypto into your base currency. While some merchant wallets only accept Bitcoin, others accept different cryptos. Hence, before telling your clients what kind of payment they can receive, take the time first to understand what currencies your merchant wallet accepts.
- Include crypto alternatives in your point of sale. Once you’ve set up your merchant wallet account, it’s time to integrate the crypto alternatives into your points of sale. Thus, make sure to include an app in your physical POS system that enables customers to scan a QR code and send coins. Consider adding a crypto payment option to your digital shopping cart as well.
- Link crypto transactions with an accounting tool. Business owners don’t understand very well how crypto relates to taxes. However, adhering to tax laws is not difficult – you must treat revenue just like a money transaction. Most merchant wallets transform crypto into cash. If you want to learn the best practices, check with the IRS.
The bottom line
As you’ve probably figured out, cryptocurrencies provide many perks for businesses. There are also downsides, but they are insignificant compared to the growth potential digital currencies can bring. Therefore, if you want to expand your customer base and stay on top of competitors, start learning more about crypto and be willing to embrace fintech innovations.