Cryptocurrency has been around close to a decade but it only hit the mainstream less than 3 years ago. Many people only found out about the digital currency when Bitcoin prices skyrocketed and peaked around $20,000 in late 2017. At this point, interest in cryptocurrency had increased exponentially because it was all over the news. Today, there are more cryptocurrency investors than ever, and the number keeps increasing.
This growing interest in cryptocurrency has raised questions concerning the future of payment. Is cryptocurrency the perfect replacement for fiat currency and other types of cashless payment methods we have today? This is a question that is constantly debated by financial experts and the business communities.
For cryptocurrency to become the future of payment, more businesses need to accept it as a form of payment. Although interest in cryptocurrency is at an all‐time high, with more people investing and trading the different digital currencies in the market, there is a long road ahead.
While cryptocurrency offers many benefits to businesses that choose to accept it, there are also drawbacks. So, for every business looking to accept cryptocurrency payments, they have to weigh the pros and cons of the decision.
A good number of top companies now accept cryptocurrency as a payment option, including Shopify, Microsoft, KFC Canada, Virgin Galactic, and many others. Many businesses ( including small businesses) will follow the trend.
There Are Many Benefits That Cryptocurrency can offer Businesses
According to Michael Foster, co‐creator of localethereum:
“crypto enables cheap and borderless near‐instantaneous transactions. This enables customers all over the world — even those without access to traditional banks, but with access to the Internet — to purchase your company’s services or products.”
The advantage of accepting cryptocurrency is that your company will be open to the global market, especially if you operate an online or e‐commerce business. It removes the burden of multiple checks put in place to eliminate fraud since cryptocurrency transactions are backed by a high level of security.
Dibu Paul, of Alchetron, notes that this could represent a huge shift. “Especially for large payment amounts, which have historically taken extra time to clear, crypto transactions are nearly instantaneous.”
Accepting cryptocurrency offers lower transaction fees for both merchant and customers. The fee for each transaction depends on whether you are accepting cryptocurrency through a third‐party provider like Coinbase, or to your personal wallet. But you will find that transaction fees a way less Credit Card payment or PayPal.
Cryptocurrency Payments Are Extremely Secure
Once payment is complete, a reversal is impossible unless the merchant consents. This provides retail businesses with more security and protection against fraud.
Apart from transactional benefits, your business is likely to attract new customers, especially crypto enthusiasts and tech‐savvy demographics. Carmen Mastropierro, owner of an e‐commerce business that accepts cryptocurrency adds:
“I believe accepting cryptocurrency as payment is wise for many businesses. Just offering several payment options has always been linked to higher conversion rates. Also, some customers feel safer paying with crypto as compared to PayPal or credit cards.”
Businesses Need To Be open To New Technology
Customers are constantly looking for businesses that are using new technology for different purposes and will prefer to patronise them.
However, accepting cryptocurrency as a payment method will not always be beneficial, considering its volatility. The value of Bitcoin keeps fluctuating with short periods of stability , which can present a serious financial problem for business accepting cryptocurrency should prices crash.
Whatever decision you make, ensure that you weigh the options and have a clear understanding of how accepting cryptocurrency can benefit your business.
Forex News Shop | Pros and Cons for a Business to Accept Cryptocurrency