When cryptocurrencies began introducing themselves to businesses across various markets, it was large and more established companies that were gradually starting to embrace the idea of digital currency to offer it as a payment option for customers. Today, because small businesses are also becoming aware of the different benefits that come with offering cryptos for online payments, we are seeing more and more micro businesses also beginning to accept cryptocurrency payments as well.
Like bettors who understand the importance of consulting with NBA picks today before placing their next bet, it’s crucial that small businesses that haven’t yet embraced the idea of accepting cryptos also understand reasons why cryptocurrencies are worth considering. To learn about this in further detail, you can keep reading for more.
Reasons Why Small Businesses Are Gravitating Towards Cryptocurrency Payments
There’s No Middleman
Cryptocurrency transactions occur directly between the customer and the business. This means there’s no need to include a middleman or intermediary in the process, making chargebacks and refunds easier to do. It also removes any opportunity for fraud and errors to take place.
Low Cost For Transactions And Transfers
Because there’s no middleman involved in cryptocurrency transactions, this reduces transaction fees, which can come in handy for businesses that have a high volume of sales that take place with credit cards. So, unlike credit card transactions that charge roughly 4% in fees, cryptocurrency transactions are normally less than 1%.
Reduces Fraud Chargebacks
Using cryptocurrency to make payments is pretty similar to what would happen when cash transactions are being made. Here, there’s no third party involved to reverse any charges illegally. The moment an item is paid for, the funds travel straight to the business’ bank account.
Customer Convenience
With cryptocurrencies becoming more popular, customers continue to appreciate the convenience that comes with being able to make payments with a safe and secure digital payment.
Improves Sales
Small businesses can enjoy the benefits of not going through any delays between payments and also, and they won’t require foreign transaction fees when they accept cryptocurrencies. This means businesses will be open to a whole world of audiences and customers.
How To Accept Cryptocurrency
For small businesses to accept various cryptocurrencies like Bitcoin, owners need to have a thorough and fundamental understanding of what cryptocurrency is and how blockchain works. Essentially, four key elements make up a crypto transaction:
- Input or origin
- Amount
- Output or destination
- Optimal metadata
The Importance Of Starting With A Digital Wallet
Before any business can begin accepting any cryptocurrency, it needs to create a digital wallet. Like most digital wallets offering cold and hot storage, these wallets keep track of the business’ assets, like the keys the business will need to purchase Bitcoin or other crypto and how much of the crypto the business has. It also provides wallet owners will a digital signature to have every transaction authorized before being completely processed.
Many exchange platforms launch digital wallets that they offer customers to use. Using a program or mobile app on a business computer will give businesses more control over the level of security they have on their funds. This means even small businesses need to be vigilant about hackers, but no matter the type of digital wallet the businesses choose to use, it’s important that they safeguard the private key that’s assigned to their digital wallet.
Google Pay, PayPal, and Apple Pay are beginning to offer crypto payment methods as a part of their digital wallets. If a business is already using any of these to accept online payments or initiate payments for goods and services, they may find it easy to use these as crypto wallets. In fact, most crypto wallets also offer debit cards to allow businesses to access their crypto funds, as regular bank accounts would offer.
In Conclusion
Small businesses looking to introduce any new model or approach into their establishment should always do their research on what the pros and cons are of making this new step. Therefore, before choosing to include crypto payment options in a business, it’s always best to have a thorough understanding of what this will mean for the business.
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