Businesses today want to improve the user experience in the sales process, especially in the checkout process. Customers will be happy and satisfied when you have various online payment methods, easy and fast. From the payment needs of customers, small and medium companies are now starting to think about whether to open a crypto business account or not? We offer some crypto tips, warnings about possible risks and the future of crypto payments for businesses. Here are a few reasons to implement crypto payments into your business.
The benefits of cryptocurrency
Let’s look at some specific benefits of accepting crypto in your businesses:
Cryptocurrency payments use blockchain technology to record, store, and secure transactions. Users on the network verify every transaction that occurs, and generally, those transactions become public records to prevent fraud. The key to using cryptocurrency is understanding that each coin is unique and that some coins offer more protection and privacy than others. Customers can use their electronic money to pay for products and services that your company provides.
Cryptocurrency payments have a lower associated cost than credit card payments.
Thanks to blockchain technology and decentralized financial system platforms, cryptocurrencies are highly secure against financial transaction frauds. Online payment transactions are made directly between customers and businesses without third-party intermediaries, including banks or brokers.
The elimination of intermediary steps in the checkout process helps customers complete payments instantly. Businesses receive payments in seconds. In comparison, bank transfers can take up to several business days.
Businesses that accept crypto payments mean access to a broader international market. Cryptocurrencies are stateless, borderless. Buyers can live anywhere on Earth. As long as they own cryptocurrency, they can buy your products and services. That means the business revenue of the company is growing stronger.
Bitcoin is the most popular cryptocurrency accepted by businesses for payment, although Ether, the second-largest cryptocurrency, is bullish. For companies with customers from all over the world, using Bitcoin has become a way to avoid bank transaction fees and long processing times and add the task of converting to other currencies.
The risks of cryptocurrency
Small businesses that accept crypto payments and already have a crypto business account need to anticipate some risks.
Let’s look at risks of accepting crypto in your company:
Accepting cryptocurrency payments will create difficulties for customers who are not tech-savvy or quite traditional. Cryptocurrency requires customers to have the knowledge and know-how to set up and trade with cryptocurrencies. Therefore, we recommend diversifying your payment methods rather than using just one payment method for all products.
Second, the cryptocurrency market has so far remained very volatile, up and down erratically. The unpredictable volatility of cryptocurrency values puts businesses at risk if they hold many of these assets. For small businesses, it is recommended that you convert crypto to fiat currency after receiving payment to minimize risk.
Third, digital currency payment transactions have the characteristics of being immutable. The transaction is only refunded when the receiver agrees. When a customer places a wrong order and asks for a refund, businesses will need to go through many complicated and time-consuming steps to solve the blockchain system.
Finally, there’s the tax on the business’s crypto earnings. Every time a company exchanges or uses cryptocurrency, you are subject to capital gains tax. So let the finance department calculate carefully before deciding to use this payment method for business.
The future of cryptocurrency for small businesses
E-commerce and crypto complement each other quite nicely as they share the same house and both appeal to digitally savvy users. As an eCommerce retailer, you should view cryptocurrencies the same way you view your business. It is an additional option for those who are looking for a faster and more convenient way to pay for goods and services. This indicates a high demand for digital payments in the online consumer base.
With crypto, there is no need to go to the bank, withdraw money or even enter a credit card number before sending the payment at checkout. The very demand that has driven the online retail world is driving digital payments, and if done right, this can be a great compliment to your existing services.
Transactions, payment regulations on decentralized financial platforms are changing every day and getting better. Small companies will have their protections and incentives applied by the system. You need to research and choose the cryptocurrency that your business accepts for payment.
Major companies such as Microsoft, Paypal, Expedia have all accepted payment in cryptocurrency. Experts predict that small and medium-sized businesses will also allow customers to use cryptocurrencies to pay for purchases outside this trend.
Today, many companies develop platforms to assist businesses with portfolio management, crypto asset management, payment cash flow management, etc., to eliminate risks. If you’re an online business that wants to accept crypto payments, platforms like the Yield.app will allow your e-commerce stores to accept crypto. Business owners can register directly on the Yield.app. After that, crypto payment processors will be set up and enable merchants to instantly accept crypto payments from customers anywhere in the world.
So should your company accept crypto payments? The answer largely depends on the company’s business goals and business plan for the resulting crypto asset.
In our opinion, small businesses should consider accepting cryptocurrency payments from customers. The cryptocurrency trend will help enterprises benefit significantly from this new form of payment. Electronic payment helps businesses save management labor when payment transactions are made entirely online from transaction history, order tracking, invoicing, etc. Customers can pay you by email, online, or by direct transfer. Meanwhile, the cryptocurrency transaction processing fee only takes from 0.5%-1% and brings a lot of profit.
Many companies have turned to cryptocurrencies during the COVID-19 pandemic to store cash assets in reserve. Businesses see cryptocurrencies as a haven, avoiding inflation amid the potential for a global economic crisis. The reason is that the government does not regulate cryptocurrencies. No one can control, manipulate the value of cryptocurrency.