When it comes to accepting payments from clients, small businesses generally prefer cash, debit and then credit—often in that order.
What about digital payments, though?
5 reasons your small business can (and should) trust cryptocurrency
Big brands, like Mastercard and Overstock, are starting to offer blockchain-based payment options, but is this feasible for small businesses?
To many peoples’ surprise, the answer is yes.
According to Brian D. Evans, a close friend and chief marketing officer of ShipChain, a transport and logistics company on the blockchain, “Accepting cryptocurrencies is fairly easy for small businesses.
More than this, though, it can save small companies money, increase their privacy, improve their transaction times, expand their customer base and serve as a huge competitive advantage.”
Here are a few reasons why cryptocurrencies should be trusted by small businesses.
1. Save money
Any small business that accepts credit is also susceptible to credit card processing fees.
According to the U.S. Small Business Administration, account companies charge around five percent on everything a business earns from credit card sales.
As of now, most small companies can’t demand their customers pay in cash, so rejecting credit card payments—and their associated fees—isn’t possible. What is possible, however, is avoiding them with cryptocurrency.
“If you want to reduce processing fees and save your business money, you need to accept cryptocurrency,” says Evans. “Digital currency is decentralized, so it doesn’t require a bank to verify its transactions. This means you can eliminate costly fees on every one of your payments.”
2. Increase privacy
Have you ever found a product you wanted, added it to a digital cart and then jumped ship because the process seemed questionable? If so, you’re not alone.
Many customers are worried about payment security, especially when they’re on a new site. When there’s a risk of fraud, it’s simply not worth it to share your personal information and credit card details.
Luckily, you can avoid cart abandonment with cryptocurrency payment options.
When customers pay with a digital wallet, they don’t have to share their personal data with you.
Blockchain transactions send information in a way that safeguards against identity theft and other types of payment fraud.
3. Improve transaction times
Customers are used to waiting three to five days for their transaction to clear or be refunded, but they’re not always happy while they wait.
Ultimately, this frustration can negatively impact a company’s cash flow and customer retention rates.
With cryptocurrency, there’s no need to pause. Funds typically become available in just a couple of minutes—if not instantly.
4. Expand customer base
Every small company can stand to expand their customer base.
Unfortunately, expensive foreign transaction fees, exchange rates and shipping problems often hinder their growth.
According to Evans, “If you want to take your company to the next level, you’re going to need blockchain technology. Since cryptocurrency operates on a ledger that’s not tied to any single government or company, it’s a completely global currency that isn’t subject to traditional restrictions and fees. After payment, when it comes to shipping, there are companies, like ShipChain, that can help your business track and trace its products on a fully integrated system that spans the entire supply chain.”
5. Unmatched competitive advantage
As a general rule of thumb, the more payment options you offer, the more customers you’ll attract.
Evans thinks that small businesses that accept cryptocurrencies not only gain more customers, but “they set themselves apart as innovators and early adopters, which is something nearly customer will appreciate at one time or another.”
Customers crave better ways to pay, and cryptocurrency allows you to accept valid payments outside of a traditional financial system.
Although only a few of your customers will probably pay with digital money at first, as time progresses and the cryptocurrency market expands, this trend will likely only increase.
In Evans’ words, “Cryptocurrency is an exciting development for small businesses. It may soon become a widely accepted world currency, which will allow companies to expand their reach across the globe more quickly than ever before.”
“Overall, digital money is becoming an important way to pay for things and transfer assets, and small businesses should adapt to the technology before it’s too late,” the expert concludes.
If you’re ready to take the leap and accept cryptocurrency, you might want to start by speaking with your customers.
Advertise the prospect of accepting this type of currency, and see how they react. If there’s a positive response, you’ll want to set up a virtual wallet as soon as possible.
Next, you’ll need to establish the necessary infrastructure to accept these payments.
Finally, you’ll let your customers know that you officially accept cryptocurrency transactions.
What do you think? Have you already attempted buying cryptocurrencies? I would love to hear your thoughts in the comments below.
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