Bitcoin and other cryptocurrencies can shrink your businesses overhead expenses.
Should your business take the leap?
First off, what is this thing called Bitcoin?
Bitcoin is a digital form of money. Created in 2009 by an unknown entity under the pseudonym “Satoshi Nakamoto.”
The growth of the digital currency and the entire market it engulfs has been steadily climbing with a huge spike at the end of 2017. As of this post, there are well over hundreds of thousands of businesses worldwide that accept Cryptocurrencies as a form of payment. The price of Bitcoin has also reached an ATH, (All-Time-High,) of just under $20,000 per coin with the price sitting over $6,000 per coin at time of this post. Bitcoin and other “Crypto’s,” as they are referred to by enthusiasts, works on a peer-to-peer technology network called a blockchain. The blockchain technology is unique in that all transfers are direct between the sender and the receiver. Cryptos are unlike credit cards, who use financial institutions as middlemen.
Bitcoin is not tied to any government or ruling body, so any money exchanged through the digital asset is not only safe, but is also borderless. This is especially helpful for businesses that sell products and services abroad.
If you have not considered accepting Bitcoin and cryptocurrencies as a form of payment for your business, it may be time to reconsider. Here are just a few of the perks that come with accepting cryptocurrencies at your businesses checkout.
Cryptocurrency transactions are CHEAP
Chances are, that if you own or run a business, you have some type of credit card transaction gateway. These “services,” can eat away at your bottom line and over time can actually put a pretty big dent in your business’s profit margin. Any expense that increases your overhead is an expense that takes money out of your pocket right? 2-3% transaction fees may just seem like the cost of doing business, however, if your business is tight on capital/cash flow, this overhead could make you, or break you. This may be especially true if you own or run a small business that is new or expanding.
Bitcoin transaction fees are generally from 0-1%. As a business accepting cryptocurrencies, it should be noted that the customer paying with crypto will incur the minimal mining fee associated with the transaction. Since payment through cryptocurrency networks are verified on the worldwide P2P network, (People-to-People,) no bank fees will be incurred like an ACH deposit fee from a credit card company. The option to pay a small fee for a faster transaction verification exists but is solely personal preference.
Crypto’s are fast
Processing your credit card receipts daily and accounting the statements weekly/monthly can really eat up a lot of your time. Even worse is waiting for the major card companies to settle with you. They will make the deposits into your bank account when they are good and ready. Do you enjoy waiting for your money? Crypto payments solve this for you by settling payments in a fraction of the time that the card companies take. Bitcoin transactions take on average of 17 minutes to confirm, and once confirmed, they are irreversible. Alternative cryptocurrencies called Altcoins, are also available to accept as payment, and most have a much faster transaction speed than the slower Bitcoin. Imagine having all of your sales for the day deposited into your bank account before you even leave the office?
Cryptocurrencies are borderless
This is especially useful if you have a business that serves customers in different countries. Exchange rates, foreign currency conversions, and foreign transaction fees can really be a headache to iron out. Bitcoin helps you avoid a lot of these hoops because Bitcoin is a worldwide currency. No government or entity can take their piece of the pie if you use Bitcoin for your over the border transactions. This can be especially helpful if you have a supplier overseas that will not accept your native fiat currency. As long as they accept Bitcoin, you could save a ton in exchange fees.
Say Goodbye to Chargebacks
We have all had those customers that no matter what we do, they are simply unhappy. Unfortunately, if they then go to dispute the payment with their card company, it can cause a debit to your bank account and become a real hassle to iron out. Bitcoin transactions are irreversible. No matter what a customer thinks about the product or service that you provided, the payment cannot be undone. As a digital form of payment, Bitcoin acts more like paper money than credit in the sense that once spent, it cannot be taken back.
Do business really accept Bitcoin and Cryptos?
More businesses than you would think actually accept cryptocurrencies as payment while the list grows bigger every single day. Japan has actually recognized Bitcoin as a legal payment method and many European countries are doing the same. Large companies like Microsoft, Overstock.com, and Subway are just a few of the well-known brands out there that are doubling down on crypto. There are even rumors of the internet giant Amazon getting ready to open up cryptocurrency payments. Wouldn’t you like to join the ranks of 1-800-Flowers, Expedia.com and Dish Network by accepting cryptocurrencies in your online store or brick and mortar establishment?
It must be a pain to accept Bitcoin
Don’t fret if you think that it’s hard to start accepting cryptos. Payment processors like BitPay and Coinbase make it so easy that you could be accepting Cryptocurrency payments in the time it takes to brew a fresh pot of coffee! Check Coinmap.org to see if your competition is accepting crypto payments already.
Cryptocurrencies are here to stay. Take the opportunity to get that extra edge on your competitors and start accepting cryptocurrencies as payment for your businesses products or services today!
Image Credit: https://www.flickr.com/photos/perolofforsberg/