A Deloitte study shows that more than 2300 US businesses now accept cryptocurrency as a payment method benefits of accepting cryptocurrency.
Elon Musk accepts crypto payment for Tesla cars. And guess what? When other big players heard about this, they started imitating the same thing.
In this article, I’ll tell you what are the major benefits of accepting cryptocurrency as one of the payment methods for our eCommerce store.
Table of Contents
1. Zero – No Transaction Fees
Accepting fiats transfers from your customers makes them pay extra fees to keep purchasing.
This could be credit card fees or bank transfer charges.
The fees are charged depending on the country the customer lives in or the bank they’re using.
As a business person, you desire to make as many sales as possible.
When customers are charged by their bank for purchasing your product, it’s reasonable enough to discourage them from making another purchase.
Blockchain aims to cut out intermediaries, such as banks and online marketplaces.
This means little to zero transaction fees.
Some cryptocurrency wallets allow you to transfer cryptocurrency for free.
The percentage of most of the fees in crypto transfers are low fixed rates that don’t fluctuate, unlike the bank rates.
Charges are so low that even your customers won’t notice that there is an extra charge to the transfer.
Unlike benefits of accepting cryptocurrency, international bank transfers on credit cards come with hefty service fees.
This is because cryptocurrency is a decentralised economy, whether a transfer is within a state or a country, doesn’t matter.
Your credit cards and bank accounts are not as safe as the blockchain. With cryptocurrency, every asset is saved in the blockchain which is hard for hackers to steal from.
All you need is to save your coins in a good wallet and you would be sure of the security of your business funds.
There is no trouble with bank scams or theft or even financial institutions shutting down.
And because cryptocurrency is a decentralized economy, it doesn’t fall or rise at the same rate as your national currency.
Instead, cryptocurrency is an investment that pays much higher than banks, especially when the value increases.
Bitcoin was initially used in a mundane transaction, just to purchase a pizza which would’ve been worth $500 million now.
When there is a cryptocurrency payment option, you automatically start to get sales from more people.
These people could not purchase your services or products in the past because of bank transfer regulations.
Due to decentralization, there’s no geo-restrictions. And given the fact that cryptocurrency transfers are becoming more popular, buyers are even more excited to quickly send crypto for a product than they are to bring out their credit cards.
This means your business could see more sales than that competitor who doesn’t have a crypto payment option.
Somewhere along the lines, some undeserving customers receive a cashback from your payment processors.
This is because you’re the business and the customer has an upper hand during the dispute.
If you receive a customer complaint and a demand for a cashback, you review and solve it amicably in favour of both parties.
This could save a small business lot of money and even help with cash flow regulations.
But yes, small businesses that receive cryptocurrency should also prepare to attend to cashback complaints to avoid lawsuits.
An average bank’s international transfer could take days and sometimes even weeks to process.
This could mean low cash flow for a business and a small business might need consistent cash flow to keep running.
With cryptocurrency payments, this issue is non-existent. Or else, there is a network issue with your transfer wallet, a transfer takes only 30 minutes to process.
Sometimes, you only need one confirmation, thereby receiving funds in an instant.
This means steady cash flow for any business and no waiting for a financial institution to sign a go-ahead document before you get your payment.