Many large companies have made the headlines for accepting Bitcoin and other currencies as a mode of payment. Some of these companies are Microsoft, PayPal, Coca Cola, Visa, Amazon, Starbucks. The use of cryptocurrencies are becoming a lot more mainstream in the scope of global adoption. Business should consider crypto for all the benefits it provides.
Let’s go over some now.
Lower transaction fees
Business owners have to bear the cost of credit card fees in order to facilitate smooth transactions. International payments bear even higher fees. There is no difference in the fees charged whether domestic or internationally with crypto. All in all, the transaction fees are much, much lower.
Crypto is much more secure than credit card companies or banks. All transactions are immutable and stored safely on the ledger. It also acts as a safeguard against credit card fraud. Private and public keys help in securing digital wallets.
Crypto transactions are faster than regular bank to bank or other types of transactions. This is because unlike the traditional transactions, crypto requires no middleman. It is a direct peer-to-peer matter. Traditional methods can sometimes take hours or days, crypto transactions are instant.
Businesses can bear a lot of losses and uncertainty due to chargebacks. A chargeback is the amount that is returned to the card holder, if they successfully dispute an item on their account statement. Sometimes, this can be a full-fledged fraud. Customers can buy goods and services and claim they are unsatisfied and claim their money back. Fraudulent charges are pressed against the merchant by the credit card company. These charges and cases can be very expensive and tedious for the business leading to losses and frustrations.
However crypto payments can completely eliminate the chargebacks. Transaction can’t be altered as the ledger is public to every node and computer on the network.
Anonymity and Privacy
Anonymity and privacy is one of the crucial benefits of using cryptocurrency for payments. Allowing a customer to buy a good or service using crypto, means giving them the freedom to anonymity. Something that is not fully possible with credit or debit cards. These companies will have all your data, copies of your identity cards, purchase history and what not.
Sensitive information is protected using blockchains. In a world of data encroachment, this is a luxury.
Businesses that accept cryptocurrency do experience a first mover advantage and are getting ahead of the curve. They are perceived as modern and tech-savvy. It can attract good publicity and attract customers, investors and so on.
All of the above are very solid reasons why businesses should accept and adopt cryptocurrency. Let’s not forget also that it is a hedge against inflation, as purchasing power has been deteriorating of late. Many businesses may be just adopting crypto to get in on the trend, but its benefits will be extremely apparent soon.