6 Reasons Your Small Business Should Consider Accepting Cryptocurrency
BY: MICHAEL JONAS ON MONDAY, MARCH 19, 2018
While some controversy still surrounds cryptocurrencies, more and more small businesses are embracing them. The reason why is that many small businesses realize they need to find ways to become more appealing to customers.
Does this mean accepting cryptocurrency is right for your small business specifically? Not necessarily – it depends on the specific situation and your exact business needs. Take a look at these 6 advantages cryptocurrencies offer business owners so you can decide if they’re right for you.
In the past, merchants in the United States have had to pay over $70 billion in debit and credit card processing fees. Cryptocurrencies are decentralized, which means they don’t require a bank to verify every transaction. This means you have the ability to eliminate costly fees, which range between 2 and 5 percent of each transaction.
Basically, with the use of cryptocurrencies, it costs very little for customers to transfer money to you. It also means that as a small business owner, you aren’t forced to share your hard earned revenue with third party financial institutions.
Additional security and privacy for customers
Studies by Statista found that more than 15 percent of shopping cart abandonment is due to payment concerns. During cryptocurrency transactions, customers do not have to give any personal information when they make purchases, giving them a sense of security. This form of transaction decreases the likelihood of identity theft because there is no number for hackers to steal.
Acquire new customers.
There are some people out there who really love to use digital currencies and follow the cryptocurrency market. When you accept this form of payment, you’ll have customers come to you because they actively seek out businesses that will accept digital currencies. The more payment options you offer, the most customers you can attract. Cryptocurrency can help you grow your business quickly.
Quick processing time
It’s not only frustrating to wait for funds to become available -- it can also put a damper on cash flow. This isn’t the situation with cryptocurrency transactions. The majority of the time, these transactions occur in a minute or less – or even real time -- because there are no banks to slow down the process.
The currency is international
Some businesses have to export goods or purchase materials from locations outside of the U.S.; cryptocurrencies can help avoid pricey foreign exchange rates and transaction fees. Global currencies ignore border restrictions. This means as long as each party accepts cryptocurrencies, there will be no issues.
Embrace change and move away from paper
Digital wallets and cryptocurrencies are steadily growing. Both bitcoin and the blockchain had banner years in 2016. This trend is expected to continue as more and more people become familiar with digital currencies. Embracing the change and becoming an early adopter will help set your business apart from the competition.
If you are considering accepting cryptocurrencies, weigh out the pros and cons to help you decide if it’s a smart decision for your business. Get the ball rolling by using digital wallets and you’ll reap the benefits and appeal to more customers immediately.
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