6 Benefits of Accepting Cryptocurrency for Your Small Business
29 Jan, 2018 / Comments: Comments Off on 6 Benefits of Accepting Cryptocurrency for Your Small Business / By William Mahnic
Unless you have been completely disconnected the last several months, you have heard of cryptocurrency. There are thousands of varieties of cryptocurrency, the most popular of which include Bitcoin, Ethereum, and Litecoin. Most people think of cryptocurrency as a medium for investing cash and some people have become very wealthy by doing this. However, cryptocurrency has other uses, such as its original purpose of being used as a legitimate currency. If you own a small business, you may be wondering whether you should accept cryptocurrency. Here are 6 reasons to do so.
1. Decreased Transaction Costs
A major cost factor that small businesses have to deal with is the transaction charge for alternate payment methods. Unless you are a cash-only business (which would pose its own problems), chances are you are paying hundreds or even thousands of dollars a month to the credit card companies. Transaction costs for cryptocurrency are markedly lower than credit cards, meaning that accepting cryptocurrency could save you money.
2. Increased Appeal to Tech-Savvy Customers
By accepting cryptocurrency, you can position your business to reach that segment of the population that is on the cutting edge of technology. This is particularly true if your competitors are not accepting cryptocurrency. You have an opportunity to capture a segment of the market that may be otherwise underserved. Accepting cryptocurrency is a great opportunity to do this.
3. Free Publicity for Your Business
By now, you have probably heard of the iced tea company that changed its name to include “blockchain” (a term related to cryptocurrency). The company saw a jump in its stock prices of nearly 300%, even though it had done nothing to change its business practices. By getting onboard the cryptocurrency train, your business will almost certainly garner some free publicity out of the deal. While you may not be looking to boost stock prices, there is no such thing as bad publicity, and you will likely see a benefit of making the move.
4. Getting Ready for the Inevitable
Let’s face it: whether you are a fan of the incredible volatility of cryptocurrency prices, this is a form of currency that is here to stay. Refusing to accept cryptocurrency because it’s a new technology is like the businesses that, 20 years ago, refused to put up a webpage. Simply put, you can get with the program, or you can get left behind. Given that cryptocurrency will be around for a long time, and given that more and more people will be using it, you can get an early start on transitioning to this new form of payment by taking steps now to accept cryptocurrency payments. Then, when your competitors are struggling to catch up, you can be making a handsome profit.
5. Skip the Waiting Period
As you know, when you accept a payment by credit card, bank transfer, or other electronic means, there is often a waiting period before you have access to those funds. Given that many small businesses rely on their daily sales as a vital source of capital, having your money inaccessible to you—even for a few days—can be quite a challenge. With cryptocurrency, there is no waiting period. You can get access to your money faster, and at a lower cost, than many other forms of electronic payment.
6. Reduce Chargeback Costs
Sadly, some unscrupulous customers will reverse the charges to their cards as a way of committing fraud. While you may be able to eventually work it out and get the money that your business rightfully earned, doing so is a hassle and can be costly. Cryptocurrency transactions are not subject to chargebacks. Once a transaction is completed, it’s done. So, by accepting cryptocurrency, you reduce your business’s risk of suffering from chargeback fraud.
As with any new technology, cryptocurrency has some kinks to work out. However, by accepting this form of payment, you position your business to benefit immensely.