In September 2021, El Salvador became the first country to use Bitcoin as legal tender. This announcement marks a huge milestone for cryptocurrency, as it moves from a misunderstood mystery to a more mainstream payment option. Small business owners are catching on to its possibilities and considering accepting cryptocurrency.
If you’re one of the many pondering whether or not to add this to your list of payment options, the following insights and tips will help you determine whether or not cryptocurrency is right for you and your customers.
Should Your Business Accept Cryptocurrency?
The first big question to ask yourself, is should you accept cryptocurrency? For many, it’s a golden opportunity. But the very next minute, there is someone else saying cryptocurrency is ‘worthless’. It’s important to note that everyone will have their own agenda when it comes to cryptocurrency, making it critical that you do your own research and find out if accepting it is in your best interests.
Ask your customers if they are interested in using this form of payment. Find out what your competitors are doing. Are others in your industry jumping on board with cryptocurrency? Don’t be afraid to ask lots of questions before you dive in.
Top Benefits of Offering Cryptocurrency
Some of the top benefits of choosing to offer cryptocurrency include:
- Stronger payment security. The pandemic has caused a huge surge in credit card fraud, as more and more tasks and purchases go online. In fact, the dollar volume of attempted fraudulent transactions rose 35% in April 2020 compared to April 2019. Credit and debit cards were the source of the majority of that fraud. Due to its third-party verification, cryptocurrency is considered more secure than credit and debit card payments. Information is stored in a crypto wallet, rather than a centralized hub where it is easy for breaches to occur.
- Irreversible transactions. For some, the irreversibility of cryptocurrency is a negative fact. Tractions can only be refunded by the party receiving the funds. On the other hand, it can also help businesses stay on top of their cash flow and better manage it – one of the biggest challenges for small business owners today. It motivates you and your team to keep immaculate records.
- Lower transaction fees. When it comes to processing transactions, one thing is for sure: fees add up quickly. Set up fees are also involved when working with many payment processors. For example, PayPal charges close to 4% per transaction, in some cases more. Cryptocurrency, on the other hand, charges much lower fees, since they are not tied to a country of origin or national bank.
As cryptocurrencies become more mainstream, it is definitely in the best interest of your business to capitalize on cryptocurrency payments. If your target audience is showing interest in this payment method, then you should too.