- Lower transaction fees: The lack of a central intermediary dramatically reduces transaction fees. Small businesses that accept credit card payments via credit card processing companies often incur fees of around 25 cents for each card swipe plus 2% to 4% of the transaction total. These costs add up, which is why smaller stores often have credit card purchase minimums on their POS systems. Accepting crypto can reduce these costs to less than 1% of the value of each transaction.
- Merchant protection: Crypto’s decentralized setup also protects merchants from fraudulent chargebacks. The transactions, like cash, are final because no third party can reverse charges. (Learn more about credit card receipt signatures to protect your business against fraudulent chargebacks.)
- Increased sales: Crypto enables small businesses to expand and open their doors to international buyers who previously couldn’t access their products and services. For example, one small electronics retailer reported selling $300,000 worth of merchandise to nearly 40 countries by accepting cryptocurrency.
Everything Is Going Digital
The growth rate of cryptocurrency and the adoption of blockchain technology by businesses may be the final nail in the coffin for paper transactions. Most businesses and banks are already moving toward digital only, and as accessibility and popularity for digital currency grows, it is likely to be the future.
Merrill Lynch, Bank of America, BBVA, and other financial institutions are adopting cryptocurrency and blockchain technology. Why? Transactions are more secure, faster, cheaper, and global.
Crypto exclusively works online; there is no third party controlling them, there are no hidden charges, and the terms of service are simple and clear.
Lower Transaction Fees
Cryptocurrency adoption makes international transactions easy by minimizing the cost and time involved in processing them. This is contrary to traditional payment methods such as wire transfers where a payment transaction can take several days. Furthermore, the decentralized nature of cryptocurrency has made it possible for businesses to open their doors for international customers for whom their products or services were initially inaccessible.
Increase in new customer traffic
Customers who are passionate about cryptocurrency want to spend it, and they’ll choose stores and services that accept it when given the option. It’s good business to give your customers as many ways of paying for things as possible.
Faster processing times
Cryptocurrency transactions are capable of taking place at near-instant speeds, so there’s less wait time between making a sale and seeing the payment clear. Digital currency transaction times do depend on the type of currency you choose to accept. Each transaction is also more secured due to the blockchain verification process.
Better control over cash flow
Once a crypto payment has been made, the transaction is final. It cannot be reversed by the customer. This will protect your business from the notorious chargebacks.
Protection from fraud
The problem with wire transfers and credit cards is that they are prone to identity theft. In an error where fraudsters are getting better at hacking business enterprises to steal client financials, using Crypto can shield you from such frauds.
Enhanced transactional security
Cryptocurrency payments are supported on a Blockchain platform with a multi-level encryption to ensure that your funds are safe.