Accepting Crypto at Your Business [Read Before You Start!]

While we continue to witness the inevitable growth of cryptocurrency in the financial industry, many businesses are still on the verge of accepting crypto payments. Other companies may still view the crypto world as an unknown place to explore. 

For a quick review, cryptocurrency started way back in 2009. The introduction of the first crypto, Bitcoin, initially affected the traditional financial system.

Then, Bitcoin grew both in value and demand in 2011. Even the American web content rating and discussion website, Reddit, began accepting Bitcoin in the same year. After a few years, well-known companies like Starbucks, PayPal, and Dell have also announced their adoption of crypto payments.

According to the survey conducted by Visa Inc., over a quarter of small companies in nine countries want to offer crypto payment methods this year. Although there may be other unknown risks associated with adopting crypto payments, many business people still can’t get their eyes off innovation and risk-taking. 

Tip: Before you begin accepting cryptocurrency, further your knowledge about it first.

Using cryptocurrencies can introduce you to both opportunities and risks; let’s be aware of that. But before entering the crypto world, one must understand what cryptocurrency is. To do so, you can start by speaking with a financial expert and conducting comprehensive research. If you want to find useful information and get a deeper understanding, you can use credible sources like thefintech50.com.

Why do well-known companies like PayPal and Starbucks consider crypto payment methods?

In 2014, PayPal announced its entry into the crypto market. Besides having their interest, they wanted to contribute to the understanding of their consumers about cryptocurrencies through educational content. They also partnered with crypto-focused companies like Coinbase and GoCoin to mark their first significant step. In October 2021, customers in the United Kingdom were allowed to buy, hold, and trade cryptocurrencies using PayPal. However, there are still limitations in their crypto services, such as the unavailability of PayPal payments in Bitcoin.

Still, the company continues pushing crypto into a wider market.

While PayPal’s interest in crypto first ignited their venture into the industry, Starbucks aimed to be a part of the people’s excitement over Bitcoin. The company hopes to create a digital system where other businesses may electronically transfer points. For example, one can use their coffee rewards points to purchase items or even plane tickets. 

Starbucks’ choice to enter the crypto market has shown us that they are a technology-driven company committed to improving its customers’ experience. 

Q: Why should your company consider crypto payment methods?

The crypto payment method may be a good option for your company if your customers might be interested in engaging with the crypto market, or you can have access to seamless international trade. Adopting this can also give you an advantage over your competitors.

While a few possibilities are stated above, switching to offering crypto payment methods must come after identifying your company’s clear intention. And to get your firm thinking about it, here are some more ways businesses can benefit from accepting cryptocurrency:

Increased Business Reach

Including cryptocurrency in your payment methods will expose you to a new market. According to the data from Crypto.com, the worldwide crypto industry had 295 million users as of December 2021. Indeed, the number of crypto users continues to grow, resulting in them preferring firms that accept crypto payments.

Lower Transaction Fees

It is discouraging for both business owners and customers to realise how much money is charged in credit card transactions. Unlike accepting cryptocurrencies, business owners may interact directly with customers. The cost of a transaction is exceptionally cheap when there is no go-between or intermediary.

Customer Privacy Protection

One of the most outstanding advantages of cryptocurrency is safeguarding information confidentiality and improving customer security. Crypto transactions can protect one’s privacy by choosing which information they may share. Offering cryptocurrency as a payment option appeals to customers that place a high value on their information’s privacy.

Fraud Prevention

There are fraud cases in fiat currencies or credit card transactions wherein fraudsters exploit chargebacks. Chargeback fraud occurs when a fraudster cancels or reverses payment for a product after receiving and consuming it. Cryptocurrency transactions can counter this concern since the customer’s payment is already directed on the blockchain, making it irreversible. 

The customer may just reach out to the business owner when a refund is necessary.

Conclusion

You may not be aware of it, but the number of companies embracing cryptocurrency might be increasing each day. The benefits of using cryptocurrency in one’s business are not limited. If you’re a business owner and choose to adopt crypto as a payment today, you will be two steps ahead of the competition, giving you a competitive edge. Changes will come once you choose to grow with cryptocurrencies. If you’re interested yet concerned because of the potential risks, it’s best for you to start your research to understand cryptocurrency further.