The financial industry is currently undergoing a huge and noticeable revolution since the birth of Bitcoin, the cryptocurrency giant. With over $53bn in market capitalization, there is reason to turn resources to the experimental blockchain-based electronic currency.
Despite the almost limitless speed at which the industry is expanding, some businesses still don’t want to open up and embrace the new channel. Let’s disccuss some few reasons you should think accepting digital currency as a means of payment
Why you should start accepting cryptocurrency as a means of payment
Advantages of Cryptocurrency
1 – The coins are growing:
According to stats from coinmarketcap, There are over 720 currencies (and growing). This means many more consumers are acquiring more purchasing power, giving businesses a larger market. While BitCoin alone counts over 14 million users, it will be crazy for any business to think this figure is negligible.
2 – Borderless digital currency
Cryptocurrency is the world’s money. This is a remarkable boost to international payments and money transfers. We live in a society where people find it absolutely difficult to transact over national borders due to currency barriers. Cryptocurrency is the money that brings buyers and sellers from different parts of the world a common payment language without expensive and time consuming third-party conversion and transfer institutions.
3 – Less charges, more profit
Payment processing by traditional middlemen and institutions is expensive. Banks, Credit card platforms, Paypal, etc make a fortune from processing and handling your payments, charging over 3% per transaction while Blockchain payments generally are less than 1%. This evidently means more profit from the same sales action.
4 – No Chargebacks
Business are losing a lot of money to chargebacks. This happens when a buyer disputes a purchase made with his or her card, often because of defective goods or items never received. Or, perhaps he or she fell victim to identity theft and never authorized the purchase in question in the first place.
While chargebacks are meant to protect buyers, sellers often get penalized with a costly chargeback fee. Generally, cryptocurrency payments are final with no chargebacks and returns. No seller is ever comfortable disputing a sale with a buyer, knowing the losses involved with the buying sticking to the refund option.
5 – Time is a strong business factor
Accepting cryptocurrency can make your funds available faster than it does with credit cards. The reason is, once payment is made, the money is yours. On the other hand, credit card processors will lock up your funds for weeks in case the buyer request a chargeback. As an author selling on DealGuardian, I only get access to funds 30 days from date of sales.
> Related: SwissCoin Ewallet has been announced
6 – Buyers’ identity-theft protection
This is a factor, I think that can contribute to more sales. Many people often feel reticent when it comes to submitting their personal identification information to the unknown. The case with Credit Card is even more pathetic. Beside requesting your identification information, you are required to surrender your card data. This may keep a cross section of your buyers in a position of fear especially if your card processor is little-known and your shopping card lacks some security elements.
Paying with Cryptocurrency does not required divulging your personal data. All you need is the address of the recipient.
7 – From Cryptocurrency to Fiat Currency
Of what use is digital money if it cannot be converted to fiat currency for local transactions ?
Most of the people I talk with here in Cameroon end up asking me how the online money is withdrawn to local CFA. Businesses that don’t have an understanding how this works are still slow in deciding in favor of the currency.
Once you have your Bitcoin (For instance), you have the choice to:
- Buy other things from online merchants accepting bitcoin
- Buy from local merchants accepting bitcoin
- Sell coins to local buyers and make more profit
- Withdraw to bank accounts
- Cash out at Bitcoin ATMs
8 – Make more profit
Cryptocurrency has been known for its constantly growing value. Bitcoin, some months back was under $1000 per coin. Today (As I write), a coin is somewhere around $1800. That’s a huge profit boosting leap.
Bottom line
The world of payment and money transfer is shifting to blockchain money. Not accepting these currencies as a means of payment is limiting your business to the few buyers who refuse to accept change.
Start accepting Cryptocurrency today and open up to another world of digital payment and business growth.