How Can Cryptocurrency Payments Acceptance Benefit a Small Business?
By Gaurav Belani
(Image Source: freepik)
Cryptocurrency has become a familiar entity nowadays, and many people invest in cryptocurrencies. Since people have become well-accustomed to crypto coins, various merchants have started accepting crypto payments. According to the report, 85% of businesses with a yearly turnover of $1 billion or more accept crypto payments from their customers.
While large-scale companies have started accepting payments in cryptocurrencies, small businesses are not far behind. Most small-scale companies want to grow nowadays by offering a better experience to their consumers. Offering multiple payment options is a proven way of improving customer satisfaction. Therefore, small-scale companies should think about the following benefits if they start accepting crypto payments.
1. Zero or Minimal Transaction Fee
The buyers often need to pay the transaction fee using a particular payment gateway. The processing fee may get high or low depending on the government's policies. The policies of payment-accepting companies also play a crucial role in such cases. No buyer loves to pay the transactional fee while purchasing a product.
Payment with cryptocurrency can make it a reality, as buyers do not have to pay a hefty transactional fee in most cases. The transaction fee becomes incredibly high in the case of international payments. Since middlemen handle international payments, the fee includes their commissions. But, payments through cryptocurrency happen from wallet to wallet without any middleman's presence.
2. Magnetize More Buyers
Since cryptocurrency has become popular, many buyers have searched for crypto payment options. You can convert store visitors into buyers by offering a crypto payment feature. Instead of using the traditional regulated currency, people prefer using crypto coins to avoid excessive transaction fees, third-party commissions, and many more.
Nowadays, people invest in cryptocurrency due to its rising popularity. Instead of holding the money idle, people also like to make transactions through cryptocurrency. Purchasing something from abroad becomes incredibly easy by using crypto coins. As a result, the seller accepting crypto payments can magnetize buyers from different parts of the world.
3. Accept Payments from Worldwide Buyers
When choosing an ecommerce platform, make sure it supports cryptocurrency payment integration to be able to tap into a global customer base and offer convenient payment options for buyers who prefer using cryptocurrencies for their online purchases. Businesses can accept payments from worldwide buyers through regular payment gateways. However, buyers need to pay a hefty amount to the middleman.
Nevertheless, merchants may not receive the money immediately due to the middleman's involvement. As a result, order processing can get delayed, which most buyers do not appreciate. Another good thing is that sellers can offer an instant refund to buyers if the product has been returned. You do not have to pay hefty charges for offering a refund or compensation to your international buyers.
4. Better Security
Since crypto payments happen on the blockchain's open-source framework, the transactions assure higher security. A transaction registered on the blockchain cannot be removed, redirected, or tweaked. Therefore, hackers and malware cannot spoil your digital payment processing. You can easily receive money from buyers without any security hassles.
On the other hand, buyers also like to use crypto coins to avoid security breaches. Applying blockchain technology in a digital marketing plan is usually meant when the phrase "blockchain marketing" is used. As we learn more about this new technology, we'll see even more applications for blockchain, which is utilized nearly solely for purchasing, selling, and trading cryptocurrencies.
5. Transactions Happen Quickly
International payment processing can be time-taking due to the presence of middlemen. The agencies or companies acting as the middleman delay the process during the currency conversion. In many cases, currency conversion is delayed due to bank holidays or weekends. On the other hand, delays may happen due to the inefficiency of the mediator.
Cryptocurrency payments happen wallet to wallet without involving any middleman. Moreover, it does not involve a currency conversion process since cryptocurrencies and decentralized currencies. The value of a cryptocurrency remains the same everywhere across the world. Faster payment processing is the reason why people like crypto payments.
6. Enjoy a Higher Competitive Edge
Every small-scale business wants to offer something unique to the buyers to attain a competitive edge. A few unique services will keep your business ahead of the competition, and crypto payment acceptance is one such unique offering. You will get more buyers due to crypto payment acceptance, as specific buyers search for merchants with such payment gateway facilities.
Offering something that your competitor does not offer will fetch a competitive edge. Your business can surge ahead of the competitors, although the products offered by your company do not have much difference from the competitor's products. Many contemporary buyers search for an advanced payment gateway that accepts crypto payments. Your business can easily grow and stay ahead of the competition by having a cryptocurrency-accepting payment gateway, whether you're a B2B SaaS Funding startup or a traditional small business.
7. Regulate Price According to the Market Value
Many small traders find that cryptocurrency fluctuates and may incur losses when the crypto value becomes low. However, the good thing is that sellers can regulate the product price according to the cryptocurrency valuation. Since crypto payments happen instantly, traders do not face losses due to fluctuations in market prices. But, the traders can suffer loss in the fluctuation of the regular or centralized currency value. Since payment processing happens slowly, the chance of suffering a loss increases due to currency value fluctuations.
So, these are some benefits of offering a crypto payment facility to customers. While most large-scale merchants have started this facility, small businesses must not remain in a dilemma about introducing the crypto payment acceptance facility to lure more customers.
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