Cryptocurrency is rapidly becoming more and more mainstream. According to data on Binance, Ethereum has passed $1.6 million, making it one of the most popular crypto coins on the market. Industries and governments around the world are starting to embrace the new way forward. So, should smaller businesses too? Well, a good majority of them already are, but if you need more convincing, take a look at our guide to all the benefits that come with embracing cryptocurrency.
It’s quick
Using cryptocurrency as an online payment method and an in-person method is very quick. The typical 3-5 working day wait for returns, for example, will be a thing of the past. Transactions are done in seconds thanks to the fact that crypto doesn’t have to go through any bank to get approved. Instead, it side-steps all the red tape and gets to you in minutes.
It’s secure
Cryptocurrency is known for its vast security measures that include encryption. Encryption uses mathematical algorithms to scramble messages and with end-to-end encryption as cryptocurrency has, it means that no one can intercept your transaction, no matter where it is in the process. For instance, end-to-end encryption will protect you if you’re making a payment with public wi-fi, where it’s common for hackers to try to infiltrate your e-wallet.
Additionally, all cryptocurrency transactions are final, which means you are guaranteed to get your money once the deal is made. There are even smart contracts that you can make up to include the outline of your transaction and ensure it takes place.
It’s convenient
Who doesn’t want more options when it comes to payment? If you’re in retail or serving customers in any way, no doubt you’ve seen someone’s face fall when they realise you only (or don’t) accept cash. Cryptocurrency is yet another option that can appeal to customers and make you, as a business, look more reliable. Due to the speed and security of cryptocurrency, customers can get in and out with as little as a tap or you can place it amongst the payment options on your eCommerce site.
It’s gaining traction
Going hand in hand with its convenience is the fact that cryptocurrency is slowly becoming more accepted across industries. Online gambling and eSports are the two most well-known examples, but blockchain as a concept, which is the foundation for cryptocurrency, is making waves in healthcare, cybersecurity, real estate, fintech and video games. This means that cryptocurrency is likely to be embraced as the currency that runs through every aspect of these industries.
Additionally, countries are embracing a digital currency as their national currency. It does go through the national banks, unlike cryptocurrency, but on the front end it’s something to consider. If you’re looking to make deals with international companies or sell across markets, you might want to at least offer cryptocurrency as an option so as to not limit yourself.
It has lower transaction fees
Due to the fact that there is no bank to charge you, transaction fees are significantly lower, which is something that smaller businesses can really benefit from. Credit card fees average at $0.25 per card swipe, plus 2-4 percent of the transaction total, which can all really add up and eat into profits.
Cryptocurrency, on the other hand, doesn’t have to worry about such fees. Crypto fees come out at less than 1 per cent of the transaction value. As a smaller business, you can really stretch profits with a much lower transaction fee.
It can protect merchants
Another common problem for small businesses is payment fraud, such as fraudulent chargebacks, data breaches, and more. Hackers can infiltrate data of businesses and steal information like social security numbers, for instance. Additionally, customers have a bad habit of buying an item, using it and either cancelling the payment or returning the item.
However, cryptocurrency’s impressive security system and the fact that every transaction is final means that no third party can reverse charges or infiltrate data.
Both you and the customer can enjoy peace of mind knowing that data and transactions are safe. Big companies have ruined their reputation due to allowing, mishandling, or even selling customer data.
It can increase sales
As mentioned, small businesses can really benefit from using cryptocurrency due to its use in international markets. Cryptocurrency can be an ample opportunity to infiltrate markets that might have been closed off otherwise and start trading. In turn, you’re likely to see a rise in sales from around the world.
Mobile sales are safer
It’s becoming increasingly common for people to not only find but buy their items on their phones. Laptops are for a specific purpose like working or gaming, but phones are for just looking at when you have a moment, which makes it something of an impulse buy network. Therefore, you want to make sure that you are offering your customers a way to make their purchase easily and quickly before they really think about it. Cryptocurrency, as we have already outlined, is fast and simple, but on mobile payments they are superior. Mobile payment options with crypto are more user-friendly, safer, and easier since they are decentralized.
Also Read: Launching a Crypto Exchange business – a Step by Step Guide
