The Benefit of Using Cryptocurrency for Small Businesses

The phenomenal growth of Bitcoin through the years has established it as a worthwhile investment alongside other types of cryptocurrencies. In recent years, as the value of cryptocurrency continues to go through the roof, it’s slowly turning into a mode of transaction in the e-commerce world. Many are also pushing for it to become a recognized payment method for physical businesses. Quite frankly, this is becoming a reality, although slowly. A couple of big businesses now accept crypto as a form of payment. More companies, both big and small, are expected to join the wagon. If you own a small business, are there benefits to using cryptocurrency? Let’s examine some top benefits of using this contemporary means of payment.

Lower Transactions Fees

One of the key benefits of using crypto is lower transaction fees. As a small business owner, one of the things to aim for is spending less while working to increase revenue. Cryptocurrency allows you to pay fewer transaction fees. As you may know, with crypto, there is no third party that charges an extra fee for connecting you to your customers. A peer-to-peer system allows a buyer to pay directly to a seller. No financial institution or payment platform works as an intermediary between you, the seller, and the buyer.

Usually, many payment platforms facilitate transactions between retailers and buyers. In the process,  the buyer and seller get charged for the transaction. The former is billed for sending money through the channel, while the latter is also billed for using the platform to receive payment.

 For a small business, this is an extra charge that may lower your revenue because it can be 1% to 3% of the amount paid for every transaction. This is not to say crypto comes with zero fees. However, the charges are significantly lower compared to fiat payment channels. For example, on a cryptocurrency platform like Coingate, the buyer pays a lower fee, and the seller may pay little to no amount at all. So if you run a small business, you may pay zero fees on payments received from sales. Even if your transactions are charged, it will be little. With this, you get to save on transaction charges and keep more gains.

Protection Against Fraud

Fraud takes several forms, but the most common to e-commerce businesses is chargebacks. Since a third party handles transactions, buyers can sometimes file for refunds, falsely claiming that they didn’t receive their goods. The seller bears the loss in this case because the money is reversed while the goods are not returned. Small businesses can’t afford to battle this sort of loss. It can undermine their growth and cause a complete shutdown if this fraud happens to bulk sales or an expensive item.

As mentioned earlier, crypto has no intermediary, and money transferred is not retractable. So no chargebacks frauds. A small business owner is assured that losses won’t come from charge frauds. Complaints will take the proper channel and not a one-sided process that causes loss for just the retailer.

Increased Revenue

Payment across the world is quite difficult in the business world. Since currency value differs, the exchange rate can be discouraging. Sometimes some buyers refrain from making certain purchases due to the exchange rate. Additionally, the payment platforms may often charge extra for international payments. At times due to various reasons, some of these payment platforms are not open to some countries. All of these, together with the governmental limit on international transactions, make it difficult for many businesses to make maximum profits. An example of a governmental limit is a country that doesn’t allow purchases exceeding a certain amount in dollars or other foreign currency.

Cryptocurrency, on the other hand, allows the transfer of funds easily without regulations that involves any form of exchange. Its value is universal, and it’s not country-based. You can also send any amount without exceeding any limit. Any third party does not regulate crypto; hence you can spend without limit. As a small business owner that accepts crypto, you can sell across borders quickly. Since you get to sell without any form of international restrictions, you can enjoy more revenue since anyone can buy from you.

 Fast and Secure payment

” Waiting for funds to clear” is a term most small business owners are familiar with. Payments through financial institutions can take several working days to clear. Additionally, the amount of information required may expose buyers to fraud. As small business owners, crypto allows you to receive all payments fast. Regardless of the frequency of payments, you’ll get it all within minutes. What is more, your customers are at lesser risk of fraud as the information necessary to pay via crypto is little. Also, every transaction is highly secured.

Start Using Crypto as a Payment Option

With the benefits of using crypto enumerated in this article, you may want to integrate it into your business site. As you do this, ensure you state this payment mode in your ads. It will allow people to know that your services or product can be purchased using cryptocurrency. With the level of awareness of cryptocurrency, many e-commerce sites now enable retailers to integrate cryptocurrency portals. Alternatively, as a seller, you can include a wallet to address customers’ invoices to send payments. 

Get a Wallet Address

Get a wallet for your business to start accepting cryptocurrency. With a wallet address, you can accumulate your earnings in crypto or have it converted immediately to fiat. This means that if you open a wallet address on(for example), you can choose to save your income as crypto then sell when you desire; often, when the value is high. Otherwise, you can have it converted instantly– when the amount is received. It will only serve as a means to collect payment and nothing more.

Conclusion

Small business owners stand to gain a lot from using cryptocurrency. They will pay smaller transaction fees, sell to buyers worldwide, and enjoy fast and secure payments. Why not integrate crypto into your business today?