The increasing popularity of crypto means that these days, more business owners are being confronted with the choice to either accept these digital assets or not. Some merchants are rushing to accept crypto as a form of payment but not everyone is convinced.
The reality is that many cryptos already offer some benefits to businesses but the volatility of these digital assets keeps some people unconvinced. Here we break down some of the advantages of adding cryptocurrencies to the payment methods you accept in your store. Once we’re done, you’ll see whether it works for your business or not.
Greater Use of the Token
While cryptos still trail behind fiat currency when it comes to overall use, the number of people looking to use Bitcoin, Ethereum, Doge, and other crypto coins has only grown over time. A big part of this is thanks to major companies starting to accept the token for goods and services. Microsoft does it, Steam and Amazon as well (through third-party providers, that is, but still). You can even buy properties using cryptocurrencies now, or credit your gaming accounts.
When we look at, say, online gambling, the adoption of crypto has blossomed in the last few years. As crypto analyst Kane Pepi writes, many players are looking for crypto-powered iGaming websites more than ever before, as they keep providing some cutting-edge features. For instance, once you deposit your buy-in assets, it should appear in your casino funds within 2-3 minus, i.e., after 10 blockchain confirmations. Those fast deposits and equally quick withdrawals make a difference, which is why there are more and more Bitcoin and Ethereum casino options to consider, with a global pack of iGamers turning to such platforms.
By accepting crypto payments, you tap into this large market and position yourself as a business that users look up to, which can lead to more sales.
Greater Profit
Most cryptos have seen spikes in their value recently, which benefits businesses that accept them. If you sell a product for $10 in fiat, for example, you’ve made $10 gross. If you sold the same product for $10 in Ethereum and the value of the token doubles, you’ve made $20 gross. By accepting cryptocurrency, you essentially invest indirectly in the crypto market and if all goes well, you can make even more money than usual.
Of course, you also have to be prepared for the possibility of the token seeing a dip in value, even if it is temporary.
Faster Transactions
Not all crypto is used for the same purpose. For instance, if you take a look at a list of crypto transaction speeds provided by Statista, you’ll see that Ethereum has had some of the best transaction speeds in the industry, with transfers being settled within seconds. This means that if you receive a payment to your business, you don’t need to wait several hours or even days for the payment to be reflected in your account. If this is an issue your business has been struggling with for a while or you think you will benefit from faster transactions, Ethereum is one of the best options for you.
But on the other side of the spectrum we have stablecoins – these aren’t meant for superfast transactions (they’re not slow, though), but they follow the value of dollar or gold, making them more similar to fiat money. Stablecoins are a nice way for a merchant wishing to try accepting crypto without risking too much.
Lower Transaction Fees
Every crypto coin operates under a tiered transaction system where you can ‘bid’ gas fees to have your transactions completed faster or slower. So, if you wanted to save money on transaction costs, you could pay a lower amount in gas fees. Given how much traditional payment methods often charge in fees, this could go on to save your business a lot of money in the long run. On top of this, some transaction fees are lower compared to other cryptos in the market; Ether is often lower in fees). This is something to keep in mind if you want to incorporate crypto into your operations.
Variety in Payment Methods
By accepting crypto for your business, you increase the number of payment options customers can leverage, and this helps you in many ways. If a customer is struggling to pay with their bank cards, having crypto as an option saves you from losing out on their business. It also makes your business look better by having several payment methods, as it signals to the public that you are a forward-thinking enterprise. There is also the reliability factor; bank networks sometimes experience downturns and options like PayPal might lag so having backup options cannot hurt.
Security
The most widespread crypto options are backed up by a network powered by thousands of validators around the world, meaning they’re part of a highly decentralized system where every transaction is validated by its users. A hacker gaining control over the network is very difficult and unlikely and this means that users’ funds and information are very safe. Plus, you can rest assured that your transactions will be completed in due time and publicly recorded.
Reputation and Visibility
Let’s face it; cryptocurrency is a very ‘trendy’ technology, and businesses that deal with it are seen as futuristic. This will definitely draw some users to it, and this is yet another reason to have cryptocurrency as a payment method. Plus, there is the possible visibility you can get from this. Guides and websites dedicated to crypto are constantly spotlighting and listing businesses in different areas that accept crypto, so embracing this asset class can be a way to get your business seen. This is especially true if you operate in a location where crypto use is a lot more novel and emerging.
