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Recently, PayPal announced that its customers in the US could now buy, sell, and save cryptocurrencies on the platform. Is it time for your business to embrace cryptocurrencies, too?
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It might surprise you to learn that there are more than 7,700 cryptocurrencies in the world. Together, they have a total market cap of over $814 billion. This information might make you wonder if embracing cryptocurrencies would be a good move for your business.
Centrepay, a payment solution in New Zealand, has helped Kiwi businesses to adopt cryptocurrencies. For example, they now offer merchant services to help link POS terminals and online payment systems with cryptocurrencies. This means customers can now pay digitally with cryptocurrencies as well as with New Zealand dollars.
What does this mean for your business? It means that cryptocurrencies have enormous potential. Here are five reasons why businesses just like yours are starting to embrace cryptocurrencies.
It is not news that sending money involves transaction cost. In New Zealand, a payment survey revealed that retailers pay 1.1% to 1.5% of the value of every transaction. Why does this happen?
Banks are physical financial systems that charge relatively high transaction fees and taxes on all digital payments. They do so because they need to pay the overhead costs that go along with maintaining a physical location. These expenses, of course, include rent, utility costs, salaries, and more.
But businesses that embrace cryptocurrencies enjoy a different scenario altogether. Crypto transactions come with lower transaction fees, making them a better option for businesses. However, if you decide to go this route, be sure to conduct thorough research before you choose a crypto broker. You want to find only the best cryptocurrency brokers.
In addition, look for payment solutions that allow transactions with no fees. Yes, this is entirely possible. There is no longer any reason why you should share your earnings with financial institutions.
It is important to note that cryptocurrency transactions are final. Payments are recorded and monitored on a public ledger. For this reason, both parties can see the transactions between them. This means that transactions cannot be easily manipulated. This leaves little room for fraud. If you’re interested in more transparency and minimal chance of fraud—and who isn’t?—this could be reason enough to convince you to embrace cryptocurrencies.
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Blockchain technology makes it easy for parties to confirm transactions. What’s more, no one is allowed to spend more than they own. Therefore, you will no longer have to worry about disputes or charge backs.
The security of virtual currencies is also high. Although hackers are everywhere, trading with cryptocurrency keeps all your assets safe. It is not easy for hackers to get into a decentralized exchange. For most of these miscreants, it is simply too much trouble to try to break into a blockchain.
Even if they do manage to hack into an exchange platform, the exchange system will willingly reimburse tokens unless you failed to keep your password safe.
Knowing that cryptocurrencies are widely accepted is good news, especially for companies that export or import goods internationally. Cryptocurrencies make it easier for businesses to avoid expensive transaction fees.
You can also avoid volatility by relying only on coins whose prices are stable. When more companies do this, cryptocurrencies help to curb inflation.
Cryptocurrencies maintain their global value. In other words, if the value of your country’s government-issued currency falls because of inflation, your business can continue to function without experiencing any loss.
Businesses that accept cryptocurrencies are different from other merchants. This sets them apart, and they are more likely to attract attention from potential customers. This is because certain cryptocurrencies have lots of followers. As time goes on, more and more people will begin to learn about crypto and its benefits.
The more payment options businesses offer to their customers, the more sales they tend to experience. Embracing cryptocurrencies will allow you to attract a wider range of customers. You can use this aspect of your business to reach more people on social media, too. Naturally, the more people who know about your business the more customers and revenue your company will attract.
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It is important to note that even institutional investors have begun storing bitcoin in their corporate reserves. For instance, Square has converted about 1% of their balance, representing about $50 million, into bitcoin. What this means for your small business is that no matter what crisis might occur—whether geopolitical, economic, or health-related—your company will still be able to complete transactions using cryptocurrencies.
Being unable to complete transactions or having to wait for funds to be available in the bank can cost your business money. High speed transactions are beneficial to customers and business owners alike. What’s more, customers will refuse to patronize businesses that are known for delayed transaction processes. This can cause major setbacks for your business.
This is where cryptocurrencies come in. Trading with cryptocurrencies will allow your businesses to avoid waiting times. You can complete transactions within mere moments.
When you have issued and confirmed transactions, you can deliver goods immediately. Your customers will be happy and will spread the word about how enlightened and forward-looking your business is, bringing you yet more customers.
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Is Now the Time for Your Business to Embrace Cryptocurrencies?
Cryptocurrency transactions are beneficial to businesses and their customers alike. If you want to your business to be competitive and attractive to new customers, it’s time for you to embrace cryptocurrencies as yet another way for customers to transact business with your company. What’s more, the process of setting up a cryptocurrency payment system is so easy. What are you waiting for?