Love it or hate it, crypto is said to replace traditional money completely in the future – is your business ready?
A cryptocurrency is a digital currency, which is an alternative form of payment created using encryption algorithms. The use of encryption technologies means that cryptocurrencies function both as a currency and as a virtual accounting system.
At this point, “cryptocurrencies” isn’t a foreign concept to us, they have been around for over 10 years now! With the rise of digital assets at an exponential pace, cryptocurrencies almost seem like “old news”. Regardless of this growing popularity, there are still many merchants who do not accept crypto as a payment method. Here’s why this needs to change.
Crypto is appealing because it can be faster, cheaper, and more secure for consumers. With this magical internet money becoming the new norm in society today, clients almost expect to be able to pay using the currency of their choice – and that includes crypto!
The real question is, how does YOUR business benefit from accepting cryptocurrencies?
- A recent study found that up to 40% of customers who pay with crypto are new customers of the company, and their purchase amounts are twice those of credit card users! Accepting cryptocurrency deposits will attract high value customers, and in turn bring in higher revenue.
- One of the main issues merchants face are chargebacks, which we understand can be frustrating. With crypto, there’s no need to worry! Cryptocurrency payments are impossible to reverse thanks to the nature of decentralized digital money. Overall, it can be very simple on the merchant’s side.
- Accepting crypto enables simple, real-time, and secure financial transactions. An added bonus is that you won’t have to worry about inconvenient currency conversions, which typically cause delays and extra fees. Crypto transactions are several times cheaper than traditional payment charges, and there will be no need to deal with fiat currency exchange rates and procedures!
- Lastly, but most importantly, accepting cryptocurrencies opens up a whole new demographic of clients! Many third world country customers often do not have access to bank accounts, which sounds almost unbelievable in this day and age! The reality is that many third world countries, especially African countries, are relying on the crypto revolution to merge them with the rest of the world. A lot of whom have a vast amount of funds they WANT to spend on businesses just like yours. Giving people the opportunity to spend crypto isn’t only expanding your internal growth, it is also consciously expanding your global presence, allowing for higher revenue all round!
Of course, there are many positive reasons to accept crypto payments. However, there are also aspects to be aware of before making the jump.
- The recent months have been proof that cryptocurrencies can indeed be volatile. Values can fluctuate quite dramatically in a short space of time. Values can even fluctuate from the moment a client deposits, to the exact moment the transaction goes through. This allows for confusing transaction mismatches on both the client and merchant side.
- There are a lot of cryptocurrencies out there. Very often we hear about a new crypto being released through annoying messages from distant relatives asking to “invest in this coin”. Don’t worry, your business doesn’t need to accept every cryptocurrency out there.
- There is a lack of regulation within crypto. Crypto markets carry less certainty with them, and hence, greater risk.
The digital world is evolving every day, with digital assets becoming more and more advanced. Whether you are old school, ignoring the media, or even actively trying to learn about the digital economy – we need to keep up to stay relevant.
With the pros and cons of accepting Cryptocurrencies as a business outlined, what is the next step? Here’s where we come in. The truth is, setting up and processing in Cryptocurrencies can get complicated.
We can help to find the right Payment Processor for your business needs, set up your gateways, fees, limits, and how to manage and understand everyday transactions. A lot of questions come our way in the beginning of accepting crypto payments, and it’s okay! We are here to guide you every step of the way to fully understand where you can improve and how to recognize the flow of these payments.
If you want to expand into accepting cryptocurrency payments, reach out to us at any point and we will be more than happy to assist!