Cryptocurrencies hit the mainstream around two years ago but have a history which spans a lot longer, after gaining more substantial recognition, it has left many business owners open to the possibility of embracing cryptocurrencies as a form of payment (such as Bitcoin).
With adoption increasing cryptocurrencies are fast becoming part of the business landscape, with many services and payment platforms enabling buying, selling and online trading in the cryptocurrency market. The question remains, however, should you be accepting cryptocurrencies moving forward and what are the key benefits they can offer you over more traditional forms of payment.
No fees (most of the time)
One of the first and most important things to note is that using cryptocurrency will save your business money, and who’d be against that? Billions are paid out over the years for the processing of payments, but with cryptocurrencies being decentralised, there’s no need for a bank or third party to get involved. So, with no transaction fees to pay, the money can be invested elsewhere. This said to be aware if your unable or unwilling to trade directly in cryptocurrencies and to use a third party to manage cryptocurrency payments and balances (like BitPay), you may end paying quite significant transaction fees!
Nearly instant transactions
Times for transactions to process are virtually instantaneous when accepting cryptocurrency payments. With more traditional payment methods (i.e. bank transfer) you can be left waiting days for funds to clear, but cryptocurrency transactions happen in real-time and are more often in seconds or minutes (rather than days). This is beneficial for both the business and the customers too, as, in this day and age, nobody likes waiting (and time is money).
Fraud prevention is built into most cryptocurrencies
It common for online sellers to experience instances where chargebacks have been made against payments that have been sent for goods or services. Thus allowing some to practically pay for things they didn’t have the money for, then reclaim their money and still retain the purchase.
Cryptocurrencies and the blockchain system work in a similar way to cash helping to prevent this by stopping a person who doesn’t have the funds from making a transaction in the first place, eliminating if not reducing fraud and chargebacks.
PR and a new customer base
Businesses want to be seen as moving with the times, they want to be known for embracing innovation, and that will undoubtedly be achieved if cryptocurrencies are accepted, sending out a massive message to customers.
It also helps to attract a whole new range of customers, who prefer to use cryptocurrencies and are currently limited to shop on online vendors who accept cryptocurrencies (making your business a big fish in a small pond).
Reduction in abandoned shopping carts
Your also likely to see a boost in successful transactions taking place, as one of the most common reasons for consumers to abandon carts is due to a business not offering the payment method the customer intended to use. By accepting cryptocurrencies your massively expanding your payment options for customers and likely to see a drop in cart abandonment and increase in transactions and conversions.
Reducing complexity and opening up international markets
Businesses will also find cryptocurrencies useful as they look to enter the global market. With cryptocurrencies not being bound by location, companies can accept payments from anywhere in the world at near instantaneous speeds, and as a result, this will help to put them on the map and open your business up to an entirely new global customer base you couldn’t access before.
Related: What are mobile payment solutions?