Many businesses are now considering accepting Bitcoin payments for their sales transactions.
Initially, such businesses were not open to accepting Bitcoin, but as cryptocurrency started to get more popular, especially Bitcoin, things started to change. Currently, it seems that Bitcoin is getting accepted in many business transactions. Keep reading to learn the benefits that Bitcoin has on businesses.
Bitcoin And Business Transactions
Bitcoin is a form of cryptocurrency that is becoming more in-demand because it is the original and initial cryptocurrency that has ever been created. You may think of it as “digital money”.
It’s been around for a while so it seems many people believe in its financial value. Cryptocurrency such as Bitcoin are also valuable because of the catchy brand names their creators gave them. So function and marketing appeal are combined to make Bitcoin more sought after nowadays.
How Can Businesses Host Bitcoin Payment Transactions?
Bitcoin is compatible with the majority of businesses and it does not matter whether a business is a small one or a big one. However, there are some conditions that businesses have to meet when they start to host Bitcoin payment transactions.
The most basic requirement is a stable power supply with an uninterrupted internet connection as Bitcoin transactions can be completed only in localities that meet this. So that generally means using Bitcoin in urban locations where both electricity supply and Internet access are reliable.
Your staff should be able to adapt to Bitcoin transactions as well. So you would have to train them in the steps required to conduct a Bitcoin sales transaction. Customers will need to be encouraged to rely on Bitcoin payments when they do business with you too.
Why Should You Accept Bitcoin Payments?
First, businesses that do accept Bitcoin for payments may find that they or their customers won’t need to pay for Bitcoin processing fees because there aren’t any. Forbes.com does note that crypto payment gateway entities will probably demand a 1% processing fee though.
Forbes.com goes on to note the second advantage of Bitcoin payments: your business will go international. You won’t be confined to just local merchants and domestic markets. This is great from a marketing perspective since all businesses need fresh markets to tap into to stay viable.
Third, your customers will be grateful for the lower transaction fees if you go the Bitcoin route. This is especially true for international transaction fees, states Forbes.com. This also means that customers will have more payment channels if you offer Bitcoin as a payment option.
Why Should You Not Accept Bitcoin Payments?
Forbes.com does clarify though that Bitcoin can be a disadvantage for your business at times.
For example, if you are in a rural location, it may be better to use hard cash or fiat currencies since there might not be any reliable electricity and Internet access available.
Second, not all urban locations have stable electricity and Internet access either. This is especially true if you happen to be in a rundown part of a city where utilities and financial services companies dare not tread.
Third, the majority of the population is still not familiar with making payments using Bitcoin. This may lead to disagreements if the customer or your staff are not used to the sometimes-lengthy process involved in Bitcoin transactions. There’s also a learning curve involved so don’t expect all transactions to be dispute-free.
Fourth, Bitcoins are “good as cash” meaning no one has personal ownership marks on the cryptocurrency. So if there are disputes between customer and staff later on, how will each party prove that there was indeed a transaction between them? And how can either party prove their case if the transaction was paid for with stolen Bitcoins? Both of the parties will not be able to prove it.
This leads us to the fifth disadvantage – your Bitcoins can be stolen from you by a knowledgeable third party. And since you cannot prove ownership of Bitcoins, that third party can easily rely on what they stole to fund their own transactions later on.
What Benefits Can Consumers Have From Bitcoin Payments?
Still, despite such risks, consumers can benefit if they rely on Bitcoin payments because they will only need a cryptocurrency wallet, or simply named crypto wallet, to conduct the transaction in your office or store.
If the transaction is long-distance and remote, they can rely on their computer and personal Internet access to initiate transactions. And yes, some consumers prefer digital transactions to the use of hard cash.
Since Bitcoins are becoming more accepted by the general population in many countries, consumers will also benefit if the government in a particular country passes favorable laws regulating cryptocurrency transactions, especially with regards to taxation of Bitcoin transactions.
Such laws can provide legal protection to the customers as well as the merchants. Also, these laws encourage businesses to sign deals with consumers who use Bitcoin.
The US Chamber of Commerce points out that some consumers may prefer Bitcoin payments to credit cards too because credit card usage may cost more than Bitcoin transactions. It also views that having an option for Bitcoin payment can benefit the consumers as they will have a whole new lot of merchants before them.
Let’s not overlook the fact that some consumers may be more comfortable using Bitcoins than credit cards for personal reasons, such as if they have a sizable stash in their crypto wallets already. As per Inc.com, consumers might gradually intend to purchase using cryptocurrency.
Lastly, consumers may appreciate that some merchants or payment channels will automatically convert Bitcoins to fiat currency such as the US dollar. This can make it more favorable for consumers
Bitcoin is a relatively new method of payment transactions that businesses can use to make their customers feel valuable. If you are a business owner or industry leader, don’t be afraid to explore this payment option first. Bitcoin can bring in money over time.