The chances are that your organization has already accepted the challenge of using PayPal, Apple Pay, Square, and even Venmo. While new forms of payment at the time, neither of these mediums have ever posed as much of a dilemma for companies as cryptocurrency does nowadays.
More than a form of payment, less than a groundbreaking discovery, cryptocurrencies are seeing companies using them every day. In the midst of this revolution, entrepreneurs often skeptically ask – “Is cryptocurrency good for my company?”
Like every aspiring entrepreneur or manager, you are constantly on the search for newer and better ways to strengthen and improve your business. However, are cryptocurrencies considered to be worth the risk?
While an interesting quandary, the problematic of institutional utilization of cryptocurrency is seemingly a puzzling one. Therefore, we’ve decided to dissent all the reasons why cryptocurrency may be an ideal choice for your company. Aside from the positive aspects, we’ve also highlighted potential red flags in the process.
Saving Valuable Money
For a merchant or entrepreneur, business gain often becomes hindered by several unavoidable obstacles. Amongst these blocks on the road to success are card processing fees.
By registering as a physical or online merchant, you are required to pay for being able to process cards. A large chunk of a company’s potential profit goes down the drain. Cryptocurrency eradicates the need for this to happen.
Cryptocurrencies don’t revolve around a singular banking system nor are they monitored in any way because they are decentralized. Due to a lack of a governing body, nobody has the right to collect fees and hinder your profit increase.
If you desire a private, anonymous and free form of receiving finances – cryptocurrencies are your answer.
The Speed of Transactions
One of the major downsides of managing payments is the waiting process. Each bank involved in the process has to give their approval to every transaction, often resulting in excessive waiting times.
With cryptocurrency, this frustrating waiting period is all gone. Using this method of payment, you can receive money in real time or in a worst-case scenario – in a minute.
High transactions speeds will not only allow you to manage your finances better, but you will also improve customer service. Nobody likes to wait, neither merchants nor customers.
Operating on a Worldwide Basis
Another benefit of cryptocurrency lies in one of its most important characteristics, and that’s internationality. Due to a lack of centralization, no single body regulates the flux of these currencies, regardless of the location.
The chances are that you have your eyes set on a global takeover. With the abilities of cryptocurrencies, you can operate on a global scale without worrying about any obstacles.
Without cryptocurrencies, companies who do business internationally become bombarded with exchange rates and high transaction fees. Reducing unnecessary and small expenses is the first step to the prosperity of a company.
Cryptocurrency allows just that, immediately after its adoption.
A Viable Protection Against Chargebacks and Fraud
For every company dealing with monetary exchange, security is atop the priority list of every entity. The primary advantage of cryptocurrencies as a payment method is their finality.
Once a transaction is complete, nobody can cancel it nor override it. Immediately after you perform a transaction, the funds that were transferred get added to the blockchain almost instantly, via mining.
What’s even more impressive about this payment system is its logic. Without any loans or debts, the entire composition of cryptocurrencies is based on a “have it or don’t have it” principle.
With a system that verifies funds, spending above what you own is impossible. Blockchain technology provides an added benefit to the security of your finances is the double-approval requirement. Both parties have to approve a transaction before it is deemed complete.
With cryptocurrencies, fraud and chargebacks will be a thing of the past. The fear of fraud is a paranoia that cripples both merchants and customers alike.
New Customers and New Opportunities
As a growing trend, cryptocurrencies have more and more followers and users each day. What was once a niche community, cryptocurrencies now have the attention of some of the greatest minds of the world.
A large number of individuals opt for this safe and efficient payment method because of a myriad of advantages. People who hold these values dear will most likely opt for the services of a company who accepts cryptocurrencies. There is your chance.
By adding more payment options, you are mathematically expanding your radius of potential customers. Such a decision cures the malady of shopping cart abandonment. An astonishing 28% of abandoned carts are due to the customer not seeing their preferred payment method.
What are Some of the Dangers of Cryptocurrency?
Maggie Ayres from EssayOnTime, despite being a staunch supporter of cryptocurrencies, urges everyone to think before making a company-wide move to this payment method.
Like with every means of transferring resources, cryptocurrencies hold their own perils for both customers and merchants alike. An amalgamation of problems stems from these three factors:
1. The lack of security of crypto wallets.
While everyone needs a merchant crypto wallet to receive funds, these containers have shown to possess several security risks. Having your finances stored in such an insecure place is not the foundation you want your business resting on.
2. The volatility of the market.
Although you will be receiving the amount of cryptocurrency equal to a dollar-based price, these currencies are volatile. Experts predict a bright future for Bitcoin and other currencies, but you can never be sure if something is “a bubble” or not.
3. The relationship of every country towards them.
Every country has a right to sovereignty, which means that they can decide which laws to enforce on their territory. Thus, cryptocurrencies can be taxed or regulated differently in every country. Such a complex web of regulations is surely confusing.
Cryptocurrencies are a definite yes for your company! With instant transactions, anonymity and no additional fees, you will improve your customer service and gain more revenue. Despite the optimistic predictions for this form of payment, there are obvious concerns of security and volatility. As a result, you still shouldn’t base your entire business around cryptocurrencies. Use them as an additional option.