4 Ways Accepting Bitcoin Payments Can Help Businesses Edge Out Competitors
Financial technology is rapidly changing how financial transactions are being conducted. One of the technologies that have changed the financial landscape in recent years is cashless payment solutions and among them is Bitcoin and blockchains.
Instead of sticking to the past, business owners should accommodate the idea of accepting cryptocurrency payments. Businesses that went out of their way to buy Bitcoin five years ago are leaping huge benefits now. If you are thinking about adopting Bitcoin as a payment method for your business, below are 4 ways accepting Bitcoin payments can help your business edge out competitors.
1. Cryptos Provides a Higher Level of Payment Security
The Covid 19 outbreak has resulted in an increase in credit card fraudulent activities. In April 2020, the dollar amount of attempted fraud cases increased by 35% over April 2019. According to Nilson Report, $28.65 billion was lost worldwide due to payment card fraud. Small businesses, regrettably, are frequently the victim of this form of fraud.
Payments made with crypto coins from bitcoin evolution are regarded to be more secure than those made with credit or debit cards. This is because cryptocurrencies do not require third-party validation. When customers use cryptos to pay, their information is not held in a centralized location, where security breaches are rampant.
Rather, their data is kept in their cryptocurrency wallet. Furthermore, the blockchain ledger is utilized to authenticate and document every trade, making identity theft extremely difficult, if not unattainable. Therefore, accepting cryptocurrency payments would alienate you from worries of data breaches that have led to the collapse of numerous businesses and companies.
2. Crypto Exchanges are Irreversible
Cryptocurrency transactions are irreversible. Therefore, reversing crypto transactions cannot be initiated by any party be it a government entity or financial institution. Refunds can only be initiated and completed by the party that receives or buys cryptocurrencies. This is one of the main differences between credit card transactions and cryptocurrency transactions.
Therefore, businesses that accept cryptocurrency payments are free from the worries of evil customers who try to reverse their transactions after receiving goods or services.
3. Reduced Transaction Fees
Transaction fees and set-up costs for many payment providers are the responsibility of merchants. PayPal, for example, levies a transaction fee of around 4% (and sometimes more).
Cryptocurrencies, on the other hand, have substantially reduced costs, if any at all. Some Bitcoin exchanges have costs as low as 1%. Similarly, if your company services consumers from other countries, Bitcoin can prevent you from getting international currency transaction fees. This is because Bitcoin is not linked to a particular country or central bank. As a result, companies do not wait for transactions to clear a financial institution or pay the associated fees.
4. New Market Segment
Some people will only do business with companies that accept Bitcoin payments. The larger the audience, the better the chances of making sales, outpacing the competition, and increasing earnings. The younger generation is more welcoming to the idea of cryptos. As a business owner, you can tap into this pool to increase your business sales. For example, you can encourage your customers to buy gift cards with cryptocurrencies. Buying gift cards with cryptos is a simple, fast process with no additional fees.
Adopting Bitcoin could be a novelty, but it may provide your company with a competitive advantage. Because many people are not yet in line with this technology, it is easy to go ahead of them. As a result, businesses that accept cryptocurrency payments can generate revenue from a new market and audience sector. To stay ahead of your competitors, buy cryptocurrencies and provide your business with an asset that is free from the influence of inflation. An example of a cryptocurrency that has performed exemplary well is Bitcoin.