Cryptocurrencies have been in the mainstream for the best part of three years now, and already they’re having an impact on multiple industries around the world. There are a lot of benefits which come with incorporating cryptocurrency payments into a business, and therefore their popularity has skyrocketed, so we’ve picked out several reasons why you should consider them below.
When it comes to business, you may want to complete transactions with suppliers, business partners, or customers internationally. However, through traditional methods, this can be problematic or costly. Thanks to cryptocurrency payments, borderless transactions are a doddle, as they’re not at all abound by location. It makes sending money across borders a hassle-free and straightforward task, and it can help scale a business.
Reduction in fees
Everyone managing a business knows that it is key to keep costs as low as possible, as this will enable profit margins to rise. So, cryptocurrency payments being able to help in this area is a godsend. When it comes to traditional transactions taking place, third parties get involved, such as banks or payment service providers. Cryptocurrencies are decentralised, however, and this means that no third parties will be included in any part of a transaction, meaning any fees will be wiped out for the vendor.
Delays in transactions taking place are one of the most significant drawbacks in the business world, for both the company and whoever they’re doing business with at the time. Traditional payment methods can see transactions take days to complete, due to third party involvement and processing and authorisation taking place. Cryptocurrency payments are processed in real-time, however, and rather than take days; they’re verified and completed within a matter of seconds or minutes. This is all done seamlessly through Bitcoin wallets offered by established operators such as Luno. The process is thus mutually beneficial and removes the frustrations linked to traditional methods.
Reputation in business has always been significant. Therefore, sending out a positive message when it comes to embracing the latest technology is vital, especially for the younger generations. Any business which permits payments using cryptocurrencies, immediately grows their audience. Also, it tells potential customers, investors, rivals and business partners that you’re an innovative company in your field, and one not keen on being left behind by not utilising the most up to date technology around.
If you mention chargebacks to most people in business, they’ll frown. Chargebacks effectively allowed customers to pay for products or services with funds they didn’t have, and then reclaim their payment, while still holding onto the products or services they purchased. They had and continue to have, a negative effect on businesses around the world, with losses incurred as a result. However, cryptocurrencies and the blockchain system they’re built on work in real-time, very much like cash. So, if a customer tries to complete a transaction without the necessary funds in place, it won’t go through, therefore making chargebacks a thing of the past.