Crypto is no longer an obscure, niche asset, and nowadays, it is not strange to see businesses in all sectors accept Bitcoin, Ethereum, and other tokens as valid payment methods. But why accept crypto payments? What are the benefits, and how can this challenging decision improve your business?
Crypto as a Payment Method
At first, crypto was all about Bitcoin. Nowadays, the whole crypto ecosystem has pretty much made it into the mainstream, so both businesses and individuals are looking to capitalize on its rapid development.
That has led to cryptocurrencies becoming a common method for purchasing goods and paying for services, especially among the more tech-savvy users and digital security buffs. Businesses in virtually most sectors have embraced decentralized networks and blockchain technology, accepting payments without the need for intermediaries.
If you’re considering accepting crypto payments, there are many compelling reasons you should do so. Let’s explore each of them.
1. It Is Convenient and Cost-Effective for the Customer
Convenience is slowly but steadily becoming the deciding factor in most decisions we make online, and payments are no exception. In short, crypto transactions are processed much faster than traditional transactions, sometimes even immediately or, at worst, within minutes.
What’s more, they usually incur smaller fees compared to traditional payment methods like bank transfers, which makes them a cost-effective solution for most users. Naturally, lower fees and more convenient transactions increase cash flow on the merchant’s part.
2. The Customer Base Is Growing
Crypto is no longer a mysterious asset shrouded in a veil of mist like it was some years ago when it first appeared in the market. Nowadays, more and more people are starting to diversify their financial portfolios and look for alternative payment methods that can help them remove the need for an intermediary financial institution such as a bank. Crypto is one solution to such problems.
Thus, by accepting crypto payments, you can potentially expand your business by making it more accessible to a broader audience. This can be particularly useful if you’re conducting your business globally, as cryptocurrencies are borderless. That is, your clients won’t have to worry about conversion rates.
3. You Can Embrace Technology
Introducing your business to crypto shows that you are willing to embrace new technologies and go with the flow as the market keeps growing and developing. This is a huge plus in the eyes of tech-savvy clients as well as investors looking to monetize on technological advancements. Moreover, embracing new technology can give your brand an innovative image and boost its marketing potential.
Digital payments often include a third party, like a bank or some other financial institution. As soon as your finances are filtered through such a body or stored in their digital vaults, they can potentially have the last say in regard to what can be done with your finances. Crypto changed this by allowing the buyer and seller to be in direct contact, with no intermediary between them. In other words, you can help your clients have full control of their funds.
5. It Can Help You Save Money
Buyers are not the only ones who have to pay transaction and processing fees — merchants have to do it, too. In fact, tens of millions of dollars are spent on merchant fees every year. As mentioned, cryptocurrencies are decentralized, meaning there’ll be no bank between you and your customer, which means you’ll be able to eliminate many of the fees that are unavoidable with traditional payment methods.
6. It’s Safer Than Ever Before
Unlike with, say, credit cards, it is impossible to spend more than you own when paying in crypto since the tokens are stored on a blockchain that both parties must verify before any payment can go through. In other words, you’ll eliminate a lot of chargeback-related problems that unfortunately come with credit cards.
7. It Can Help You Diversify Revenue Streams
Investors pour their funds into various assets for a reason. Namely, it gives them a sense of security since they know their financial health won’t depend on the performance of a single asset. As a merchant, you can do the same by accepting crypto as an alternative payment and source of income.
8. It’s Easy to Do
Accepting crypto payments is easier than it sounds. Sure, the process will vary depending on your region, but it usually involves the standard few steps of setting up a crypto gateway or wallet, creating a simple crypto plugin for your website, adding some tokens to the list of available payment methods at checkout, and integrating crypto payments with your accounting software, which shouldn’t be a problem if you’re working with platforms such as Reactivepay.
9. It Might Become Necessary, so It’s Better to Be Prepared
Things are changing, and we’re heading toward a purely digital age in which paper bills, checks, and vouchers might become a thing of the past. Sure, it won’t happen overnight but try to embrace change and become familiar with new payment methods such as crypto while you can, that is, before they overwhelm you.
While accepting crypto has a lot of benefits, it is important to consider some potential drawbacks and risks associated with it if you want to benefit from this alternative payment method.
For example, there’s the annoying price volatility and common regulatory uncertainties that are still two of the main obstacles that prevent crypto from enjoying a fully positive public image.
That is, it is possible for the payment you receive to become worthless rather quickly if the market shifts in an adverse direction, even with some of the more popular tokens like Bitcoin, let alone meme and altcoins that are now dime-a-dozen.
Still, some risk management can prevent many potential problems, and so can using reputable payment processors and reliable cloud payment solutions. Also, try to offer crypto as an alternative rather than main payment method, as most customers still prefer paying the traditional way.