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Cryptocurrency is nothing new. While many people discuss digital assets as an enigma, they are a medium of exchange that has significant value. True, digital coins do not have the same tangible backing as cash, but the security of the blockchain’s design and setup creates (or should create) a level of trust.
If your business has yet to accept crypto as a form of payment, it is falling behind and missing out on valuable opportunities for advancement. While not all companies have embraced crypto yet, those that have have had unparalleled access to otherwise distant consumer groups.
The number of companies accepting cryptocurrencies is growing, including names like Gucci, Paypal and Visa. Allowing crypto payment options can increase your market share and improve your market position; it can also demystify this legitimate form of payment.
Reasons why cryptocurrency is right for your business model
It’s easy to look at the failures of FTX and lose faith in the system, but investors and companies need to reexamine the market’s otherwise successful history. Bitcoin is just one asset among thousands that continues to outperform investors’ expectations. The craze of one digital coin shouldn’t dissuade innovative companies from embracing a payment option that has proven time and time again its ability to persist.
If your company wants to look to the future, it needs to embrace crypto because it’s not going anywhere. The financial “new normal” requires businesses to adapt and embrace changing structures. Beyond the need for customization, there are many reasons businesses benefit from accepting crypto payments.
Related: 5 Tips for Using Cryptocurrency in Your Small Business
1. Reduce false chargebacks
Many companies are victims of friendly fraud or misleading consumers. In the age of digital subscriptions, many consumers don’t remember all of their purchases and may report a credit card fraud problem where there isn’t one. Unfortunately, whether friendly mistakes or criminal offenses, kickbacks cost companies billions a year.
Accepting bitcoin payments can reduce the risk of fraudulent chargebacks. Report crypto payments to an immutable public ledger. The payment method does not allow changes, which means that once a transaction is completed, nothing can reverse it, eliminating false claims of fraud at the end of the purchase.
Related: Benefits of Crypto Education for Your Business
2. Increase security
Cryptocurrencies exist within a blockchain — a decentralized, distributed digital ledger. All transactions are permanent, immutable and impossible to delete. The entire crypto concept is a vision for a secure monetary asset.
A company can improve the security and usability of cryptocurrency by partnering with blockchain monitoring services. Some payment processors will offer additional security measures; however, even bare bones, cryptocurrency is safer than credit cards and other payment methods.
Accepting cryptocurrency shows your consumers that you care about their safety and yours. The added security and finality of digital coins also provide assurances for businesses that provide subscriptions or other services in a technology-centric era.
Related: Crypto vs. Banking: Which is the Better Choice?
3. Lower transaction fees
Credit card fees are a significant thorn in the side of many merchants. Fees represent a loss of profit on individual transactions. In addition to the percentage on top taken from the sale, many credit card processors also charge a nominal fee per incoming transaction.
Cryptocurrency transactions eliminate any additional fee structures when handled on the business side. If you choose to use a payment processor (recommended), you will have to pay a service fee, usually less than traditional processors charge.
4. Improve the speed of transactions, regardless of the country of origin
In addition to transaction fees, processing credit card transactions takes time. As a business owner, you have no time to waste. Most cryptocurrency transactions take place in real time — one of the many benefits of a decentralized system.
Traditional credit or debit card payments can take several days, depending on the consumer’s location. Crypto is borderless, so location does not affect or hinder transaction speed. Also, since digital assets do not involve settlements or barriers between countries, there are no expensive currency conversions.
Related: 10 Ways You Can Learn About Crypto and Blockchain
5. Improve growth potential
The growth potential of cryptocurrency is two-fold for business owners: financial and market share. Any crypto investor can tell you about the exponential growth of digital assets in recent years. For a business owner, the potential value increases for some cryptocurrencies are enough for them to accept the payment method. Allowing crypto payments means you can potentially make more money from the same amount of purchases.
Aside from monetary gain, allowing cryptocurrency also opens up your business to more affluent consumers and customers who may not have considered your company before. Crypto allows a level of anonymity and privacy that other forms of payment do not. Newer, more private consumers will appreciate your company’s steps to ensure their privacy.
6. Taking crypto means getting cash
You get cash for your payment, not cryptocurrency, if you deal with a reputable payment platform. Trusted platforms will convert crypto payments into cash. And by taking cryptocurrencies, you make it easier for cryptocurrency owners to purchase products and services, while receiving cash into your bank account. It’s a win-win and a great profitable opportunity to increase your income.
Crypto is the future, and the future is now
Whether it’s a high-end, established retailer or a small, fledgling business, it’s time to embrace cryptocurrency by allowing it as a payment option. Digital currency is more secure than other transaction methods and enables growth opportunities while preserving consumer privacy. Embrace crypto and embrace the future of your business.