Cryptocurrency has its challenges and controversies. Still, one cannot deny its benefits – quick transactions, extremely low transaction fees, and an irreversible ledger. Already some businesses are using it as a mode of payment for goods and services. Among other reasons, it makes such businesses stand out from the competition. The following are some convincing reasons why crypto should be a payment option for your business.
Very low transaction fees
All transactions require a processing fee. The transaction fee for debit and credit card payments range from 3% to 5% of the total transaction amount. But, cryptocurrencies transaction fee average at 1%.
Yes, 5% does not seem much. But, after thousands of dollars’ worth of transactions, those small fees turn into hundreds of dollars. Actually, most online businesses and e-commerce stores end up paying thousands of dollars in credit card transactions.
More cryptocurrencies are flooding the market. The competition will result in even cheaper transaction fees. Therefore, it makes sense to make this digital payment an option for your customers.
Faster transactions
Most of the time, banks and other forms of online payments make you wait before funds can reflect in your account. The situation is frustrating and has a negative impact on your cash flow.
Cryptocurrency transactions occur in real time. That is because these are online transactions and there is no third party involved. The transaction happens between the seller and the buyer – you are not under the mercy of a financial institution. After a transfer is made, the balance reflects on your wallet immediately.
No chargebacks
Chargebacks are a nuisance for business owners. They happen when customers shop, with money they do not have, on their credit cards then report fraudulent transactions to their bank. Then, the bank reverses the charges on the card. Of course, you can fight fraudulent chargebacks. But the process is complicated and might take time to be settled – long enough for you to give up and take the loss.
With cryptocurrency, there is no chance for chargebacks. Crypto is based on blockchain technology where everything is recorded in an irreversible ledger. That is to say, if a transaction happens, it cannot be changed. Sean Seshadri has more information on blockchain technology.
Access to the global market
Crypto is a global currency. The bitcoin used in the US is the same one used in Africa, Asia, Australia and the rest of the world. So, a customer in Singapore does not need to change currency to purchase an item in your US-based online shop. The point is that crypto allows people all around the globe to make transactions without having to worry about foreign currency exchange rates.
Protect the privacy of your customers
Research by Statista shows that payment security concerns result in 17% of shopping cart abandonment. The study also found that 18% of shopping cart abandonment is due to excessive security checks at check out.
The point is customers worry about the privacy of their credit card information and other personal information. But privacy is not a concern with crypto transactions. You do not need to share any personal information to send or receive crypto.
Clearly, there are many good reasons why you should add crypto as a mode of payment. The current trends indicate that it will gain popularity. So, why not get ahead of your competition. For more on cryptocurrencies and blockchain technologies, check out Sean Seshadri Tech. Jump to top