If you’re a business owner and are looking for ways to improve your bottom line, maybe you’ll want to think about accepting cryptocurrencies as a form of payment from your clients and customers. Cryptocurrencies are getting recognized more and more as a legal form of payment, and are something that should definitely be considered if you want to stay up-to-date with new technology and new forms of payment that have the potential to increase your bottom line profits.
So what are the benefits of using cryptocurrencies in your business?
- LOWER TRANSACTION FEES
One of the reasons why cryptocurrencies are becoming increasingly popular with businesses is that cryptocurrencies have lower transaction fees. Unlike credit card and debit card payments which would usually charge about 3-5% for each purchase, cryptocurrencies offer lower fees that reach maximum of about 1% of the purchase price.
- NO CHARGE BACK FEES
Because all sales done with cryptocurrencies are final, as cryptocurrencies act basically as cash, there are zero chargebacks. Chargeback rates under 1% are typical, but even rates this low can significantly increase your rates when dealing with credit card companies. Accepting cryptocurrencies means one less thing to worry about.
- NEW CUSTOMERS
Due to the quick development of new technology, more and more people are using digital or mobile wallets, and since paying through those services is quicker, easier, and safer, people are increasingly gravitating to this new forms of payment. By accepting cryptocurrencies, you’ll be attracting more new-generation customers that are slowly taking over the market.
- TIGHTER SECURITY
Using a credit card to purchase something is the preferred method of payment for many people because you don’t have to bother with the amount of cash you have in your wallet. However, every time we purchase something, we’re revealing personal information that can be hacked by cyber thieves. With cryptocurrencies, there is no customer information to steal which makes both you, a business owner, and your customers less susceptible to fraud.
- MARKET YOUR BUSINESS ACROSS THE WORLD
Many businesses limit themselves to their native country because the costs of doing business in multiple currencies is restrictive. However, cryptocurrencies do not know these barriers because cryptocurrencies such as Bitcoin, Dash, Ethereum, and LiteCoin offer fast transaction and are easily converted into the local money.
Obviously, there are many benefits to using cryptocurrencies in your business, but there is also one major risk if you decide to accept this form of payment. Cryptocurrencies have a tendency to have volatile price fluctuation. In other words, the price of various currencies (such as Bitcoin or LiteCoin) can change significantly from one day to another. However, potential losses can be prevented by using various programs or apps that will calculate the price of the coin at the time you accepted the payment and convert it into your local currency right away, depositing it into your local business bank account. So basically, even this volatility doesn’t have to present a problem if you approach working with cryptocurrencies with the right means and knowledge.