There is literally not one website where payments are accepted that you don’t find credit/debit card or bank transfer options. The availability of these methods has made performing online transactions easier, allowing people to enjoy a wide range of services. However, as our digital world advances, more payment options are coming to light and businesses are adopting them to make life easier for their customers.
For one, cryptocurrencies are becoming a fast-adopted payment option. It is a modern payment alternative that offers numerous benefits. Some say that it is the future of money. This may be true based on its influence across various industries. In this article, we will explore how businesses can improve profitability and gain competitive advantage just by including a crypto payment method.
What Are The Advantages of Cryptocurrencies to Businesses?
Let’s say you are looking for a payment alternative for your business and are willing to consider cryptocurrencies, here are reasons why it may be a good choice for you:
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Expands Your Customer Base
First of all, cryptocurrencies are gaining huge attention and this automatically means more users across different locations. As a business owner, including this payment method will help expand your customer base. Apart from crypto holders in a location choosing to use the services of companies that accept this preferred payment method, you will also be reaching others in different locations – talk about borderless transactions. In short, your business can reach a global audience without having to worry about bank downtimes or currency conversion limitations. As you appeal to local and international customers, you will be giving room for business expansion and more profit with this payment alternative.
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Low Transaction Fees
One of the problems that many businesses face is paying transaction fees to debit/credit card providers. Usually, when a transaction takes place on a business platform, the card company charges a processing fee that may range from 2% to 5%. It may seem low but imagine when over 1000 transactions are performed daily – it could be a lot. That is why some platforms seek other alternatives that won’t cost them that much.
Cryptocurrencies are good alternatives in this regard because of their low transaction fees. Sit makes sure that even if a business is handling high volumes of transactions, they won’t have to worry. The deductions won’t be as significant as with the traditional credit card method. And as expected, lower fees only mean more profits for the business and increased flexibility for its customers.
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Minimized Chargebacks
Still, on the profitability of a business, chargebacks are a significant factor. Usually, chargebacks are reversed transactions and it may affect a business if initiated by a customer through credit card payment. This means that your brand will likely suffer a loss in the case of a chargeback. In fact, in the worst-case scenario, it could be linked to fraud, which may affect the reputation of your business.
However, with cryptocurrencies, you don’t have to worry about chargeback risks because they are minimized. The reason is that cryptos operate on a blockchain technology which is backed by an extra layer of security that ensures all transactions are verified and fraud-proof. Also, this method allows customers to process payments once, preventing them from reversing transactions that could negatively impact your business. There is really a good level of transparency here.
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Asset Appreciation
Imagine if you had a business that could potentially earn x2 of its annual revenue just by having investments in cryptocurrencies? Now, this is what you also get from accepting cryptos as a mode of payment for services. You can choose to retain BTC or ETH as part of your company’s treasury, allowing them to appreciate in value over time. This is much better than fiat money that could potentially lose value over time.
If you must think in this way, you should also understand that digital assets are volatile and come with their own risks. They depend on market conditions – if market value increases, your business profits; however, if it decreases, you could lose money. Notwithstanding, a smart move is to convert a portion to fiat money and hold the rest for potential gains in the future.
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Enhanced Brand Image
One of the easiest ways a company can make money is to have a good brand image. There will be endless PR opportunities which you could simply say would drive more customers and increase your brand’s profitability. For instance, if you run a crypto casino site, you will likely be one of those gambling platforms that players with digital assets would like to visit. Most players will seize the opportunity to spend their BTC or ETH and even invite more people to the platform, if you provide an excellent service. So, while you promote your business on various marketing channels, you will also benefit from word-of-mouth PR.
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Less Dependence on Traditional Banks
Using cryptocurrency in your business is one smart way to reduce dependence on traditional banks and other financial institutions. Many times, customers face bank-related problems when making payments online and this may limit their entire experience. For example, if someone is having difficulty depositing funds into a gaming account at an online casino due to bank issues, such a person may decide not to go on with any longer if it becomes unbearable. However, with cryptocurrencies, you don’t face problems like delays or restrictions – in fact, you have good control over your finances.
More so, cryptocurrency mode of payment is an excellent choice for locations with limited banking infrastructure. It allows people in such areas to access websites and enjoy speedy transactions without worrying about banking fees.
What Are The Challenges Businesses Face With Crypto?
One of the problems that businesses will likely face with adopting crypto payments is the regulation or compliance requirements set by the government. It may be strict, limiting the ability of companies to integrate this method into their system.
Another is price volatility as it could negatively affect profitability if market value decreases.
Conclusion
If we are honest, cryptocurrency payment opens several opportunities for growth and profitability for companies. There is so much for companies to gain than lose, as you can see from above. However, while certain challenges persist, we believe that businesses will benefit a lot from moving in the direction of this change. So, as cryptocurrencies seem to become the future of money, companies, like crypto casinos already invested in it are set for long-term success.