The cryptocurrency market has evolved dramatically over the past few years. While many businesses have started accepting Bitcoin payments for their products and services, most of them are still relying on fiat currency payments. Most entrepreneurs don’t see the need for taking up Bitcoin, and few of them truly know how it operates and whether it is as safe as conventional methods. Below, we discuss five straightforward ways businesses can use cryptocurrencies to accelerate their progress over their competitors.
1. Increase reach
Anyone who has used Bitcoin to pay for goods and services will tell you it is the most convenient and seamless way to perform a transaction. While many people still don’t know how to buy Bitcoin, there are cryptocurrency buffs out there who will do anything to use it. Accepting cryptocurrencies opens you up to a whole new market, which is bound to positively impact your reputation, sales, and bottom line.
2. Reduce transaction costs
Businesses accepting cryptocurrencies have the option of dealing directly with the customer or involving a go-between. When there is no intermediary, the cost of the transaction is extremely low. Small businesses, which are highly sensitive to small cost differences, can use this to adjust their product prices and compete more favorably in the market.
3. Simplify cross-border transactions
In the digital era, you may think that businesses can sell to anyone they wish regardless of their geographical location. Unfortunately, there are still many barriers, and the high cost of processing payments is undoubtedly among the most notable ones.
Cryptocurrencies make it possible to trade internationally without having to part with a chunk of your profit or overpricing your product. Note that the value of Bitcoin anywhere in the world is the same, and a lack of middlemen makes transactions quicker and less costly.
4. Curb chargeback fraud
Chargebacks are a significant problem for both land-based and online businesses. Customers will purchase a product then cancel the payment, oftentimes after using the product. This can prove costly on the business’s end and may lead to considerable losses in the long run.
Luckily, chargebacks only apply to fiat currency transactions. Payments recorded on the Blockchain system are permanent and irreversible, leaving the customer with no choice but to contact the business directly if they want a refund.
5. Protect customer privacy
The issue of cybersecurity remains one of the most significant downsides of digitization. Each year, we hear of major data breaches that leave targeted individuals exposed to identity theft and loss of finances. Cryptocurrency transactions offer great anonymity as the buyer decides the kind and amount of information they can provide. Offering crypto as a payment alternative makes you attractive to prospects who highly value their data privacy.
Cryptocurrencies are far from penetrating the mainstream market, but their progress suggests that’s where they are headed. If you want to get the most out of them, your best bet is adopting them now and growing with them.