Cryptocurrency has evolved in many ways. Since its inception, people have started looking for creative ways to use digital assets for more than just investment opportunities, highlighting their original goal as a fiat alternative. Jason Simon, a cryptocurrency and global payment solutions expert, provides insight into why businesses need to consider accepting cryptocurrency as a form of payment.
Some people use the purchase and sale of cryptocurrency in order to have a stable income, preserve their assets and send remittances. One of the most prominent real case studies offered by Bitcoin and others is that making payments is much easier, especially in the case of sending money abroad. States Simon, “It is also very useful for eCommerce, as entrepreneurs are starting to accept cryptocurrency as a form of payment for their goods and services. Having a digital currency wallet is like having a financial passport, because it allows you to enjoy banking services that cannot access them.”
Cryptocurrencies that have appeared after Bitcoin (a long list of more than 2000) also follow in their way to make payments much easier. And today, more and more entrepreneurs are beginning to accept these exciting new forms of payment. Accepting cryptocurrencies to use online as a form of payment for your goods and services has many advantages, not the least of which is improved security. Most cryptocurrencies in circulation are very secure. Bitcoin transactions, for example, are some of the safest in the world. Each transaction is verified by miners and then posted to a public ledger that everyone can see, and these public records cannot be sabotaged, as several very complex cryptographic hashes protect it from manipulations or intrusions.
Bitcoin and other cryptocurrencies help tremendously when sending payments abroad. Traditional banking systems and money transfer operators tend to be more expensive, take longer and are more complicated to find if you reside in an underdeveloped country. “Additional commissions and long wait times could deter people from making purchases at a store like yours. If they find that they can pay with fewer commissions and at a faster pace, it could lead them to buy more goods and services,” adds Simon.
Since anyone can send cryptocurrencies at virtually any time and place, the target market will be much larger by being able to cover many different countries (and with different time zones). Barriers between countries can be broken down and, therefore, your market will expand.
Cryptocurrency transactions bypass many of the fees incurred by most traditional payment methods. Traditional payments involve numerous commissions that are often a drag on consumers; however, cryptocurrency transactions incur few (or none) commissions and are an extremely viable option for companies, especially those operating mainly over the Internet.
Accepting cryptocurrencies as a form of payment for your goods and services is a good way to generate knowledge of your brand. Explains Simon, “If you start accepting cryptocurrencies as a form of payment, you can use this fact as a milestone or reference in your company, and you could even create an entire marketing campaign around it. It’s a new kind of marketing aimed at a new generation of customers, those who are looking forward to using them for more than just investing.”
Allowing cryptocurrencies as a form of payment can also be positive for your brand. If you have the right product or service, and it can also be purchased with bitcoin or other cryptocurrencies, it could be a perfect combination. For example, if you are a technology company, accepting cryptocurrencies as a form of payment would be a way to prove that your company is very modern and has a vision for the future. It could be an excellent sales argument for your company, as it would serve to demonstrate your willingness to adapt to the times. Even if you’re not in the tech industry, anything could be an excellent sales argument if marketing is properly targeted.
Ultimately, deciding to accept cryptocurrencies as a form of payment depends on the type of business you have and what your priorities are. In most cases, accepting them should not be a decision to be taken lightly by businesses. If you have more urgent business to attend to, take care of them in the first place. You should only think of accepting cryptocurrencies as a form of payment if all other matters in your company are properly in order. This should be seen as a way to expand or improve your business, not to solve any problems.
If you decide to accept cryptocurrencies as a form of payment, don’t forget to study the topic well first. Don’t make rash decisions, because, when it comes to cryptocurrencies, knowledge is power. Although buying and selling digital currency is something still relatively new and exciting, hasty decisions could lead to losses for you and your business.