More often than not, owning a business means confronting oneself with many roadblocks as you develop and grow. One predicament that business owners always find themselves in is related to the need to constantly adapt to an ever-changing market, populated with newly emerging technologies and an increasing number of competitors. Ever since e-commerce gained such massive territory against brick-and-mortar stores, payment options have also diversified over the years.
A payment method that’s been recently on the rise, yet still having little recognition in the business world is through cryptocurrencies. Since there is great hype around these digital currencies, you may have heard about them, but not actually fully understood what their role is. In order to grasp their benefits, you first need to know how they work. These coins have nothing to do with central banks and governments, but they are managed instead by what is called a blockchain. It is basically a virtual ledger, in which every Bitcoin transaction is jotted down. The coin mining process also continues to evolve, thanks to up-and-coming technologies that everyone is talking about. These include the likes of Ethereum, Walton and Elements (ELM), which uses 11 scientific hashing algorithms to solve as proof of work, as well as 30% less wattage with the GPUs. Like any other coins, Elements has a mining pool of its own, where people can join the mining process.
This being said, the differences between being tied to and completely free from a centralized institution are manifold and extremely vital. Let us elaborate on how accepting cryptocurrencies as payment will benefit both your business and your relationship with the customers:
Better security than ever
Cryptocurrency payment works the same way that PayPal payment does: customers do not give their personal financial information for the transaction to take place. This way there is no information to be stored and thus, no information to be hacked and stolen. Even though the concept is not entirely new, it is extremely appreciated by those who send and receive huge amounts of money in digital coins and still get to keep their financial information private. For some cryptocurrency traders out there, this may be their most valued perk, since the financial environment is now more aggressively targeted than ever.
Everyone speaks the same language
With cryptocurrencies you are looking at the elimination of high foreign conversion fees, since the purpose of the coins is just that exactly – they create a universal language that breaks down all cultural barriers. This is beneficial to both customer and business owner: the former can simply make payments without having to worry about paying inconvenient fees, while the latter can more easily expand their activity across borders. There truly is nothing like it – even the above-mentioned PayPal has a considerable fee that adds up as you increase the number of your transactions.
Reduced processing fees
This is another bonus that makes cryptocurrency worth accepting. Most business owners could probably do without the transaction processing fees that come whenever they accept credit and debit cards. Although having zero fees is not a possibility at the time being, paying as little as 1% with cryptocurrencies is as good as it can get, compared to the minimum 3% fees taken by banks. Of course, this doesn’t include the other hidden fees that these financial institutions often operate with.
A common occurrence when operating with money through credit and debit card payments is that the person or company on the receiving end of the transaction may be at a disadvantage when it comes to receiving timely payments. It can take entire days for the money to travel safely from point A to point B, especially since there are so many parties joining in the transaction. However, with cryptocurrencies, you get to keep a healthy cash flow when you need it the most, all hassle-free. This means less frustration for the business owner and greater long-term benefits for the business itself.
On this note, it is becoming increasingly clear that implementing cryptocurrency payment for businesses is harmless and comes with nothing but benefits. These perks can be noticed both immediately and in the long run, increasing your revenues, reinforcing your brand in terms of innovation and flexibility and improving your customer relationships. Cryptocurrencies have built an environment that aims to be favorable and profitable to all parties engaged in their use.