The popularity of Bitcoin triggered an international wave of interest in not just cryptocurrency but blockchain technology as a whole.
As with any new technology, most people will initially sit on the sidelines and study whether the growing interest is not just another passing fad.
Unsurprisingly, the overwhelming majority of small businesses are watching from a distance unsure of whether jumping in is really worth it. Yet, there are many ways that small businesses can benefit from plugging into the cryptocurrency ecosystem.
We look at some of the benefits below.
The Benefits of Cryptocurrency for Your Small Business
1. Brand Visibility
Businesses that accept cryptocurrency are the exception. By announcing your acceptance of cryptocurrency, you instantly distinguish your business from the competition.
What’s more, cryptocurrency has a passionate community of users. This community will be keen on supporting and buying from a business that isn’t afraid to dabble in this new mode of payment.
Adopting cryptocurrency signals your business’ culture and this alone can win over a potential customer.
2. Lower Cost
Cryptocurrency payments don’t require a processing fee. Transactions are borderless and received in near real-time irrespective of the senders and recipients’ geographical location.
The absence of cross-border barriers is a key reason cryptocurrency payments are much cheaper than credit card transactions.
For small businesses which are much more sensitive to seemingly small differences in cost, such savings can prove substantial and underpin long-term growth.
3. Reduce Fraud
Credit cards have been the engine behind the growth of eCommerce. By providing a means for making a payment that doesn’t require the buyer to be physically present, credit cards have allowed online businesses to engage with customers wherever they may be.
But credit cards have faced some drawbacks, chief among them being international fraud risks.
Vendors are often hesitant to engage with persons outside their home countries and some brands even ban international payments.
Since cryptocurrency transactions cannot be repudiated, they provide much higher reassurance when making international payments.
4. Rewards Program
Rewards programs are a great way to foster customer loyalty and incentivize future sales. They offer various rewards for customers who make any purchase using cryptocurrency.
For instance, a 10 percent cash back on each cryptocurrency purchase or a free dinner to an exotic chain of restaurants.
Rewards programs also allow you to partner with non-competing businesses that appeal to the same target demographic as you do thus stimulating mutual growth.
5. Blockchain Experience
The adoption of cryptocurrency has only continued to grow.
If the current momentum holds, blockchain technology will eventually become mainstream. As with any emerging trend, early adopters will enjoy a substantial advantage over those who join the bandwagon later.
By accepting cryptocurrency now, small businesses owners have the opportunity to streamline their process, understand the intricacies and gain the experience needed to offer a working payment mechanism.
6. Customer Confidentiality
Every year, the hacking of millions of customer records at a major organization hits international headlines. Such loss of personally identifiable information leaves the affected customers vulnerable to identity theft and ultimately the loss of their hard-earned finances.
When a customer pays you via a credit card, they create an elaborate transaction history that can be used for malicious intent if it were to fall into the wrong hands.
One of the most compelling drivers of cryptocurrency has been the greater anonymity of the payment process. The buyer can choose to provide only as much information as they want to.
Customers want anonymity for various reasons and not necessarily because they are involved in a shady deal. By offering cryptocurrency as a payment option, you will make your business attractive for buyers who wish to maintain their privacy.
7. Low Risk of Third Party Interference
Financial industry regulations and banking procedures are meant to protect both customers and the financial services industry from risks. However, such regulations and policies can also be an annoying bureaucratic bottleneck to conducting legitimate business.
Cryptocurrency gives the buyer and seller complete control over the management of their wallet. There’s little risk of a regulator or bank unilaterally and without warning, closing their account.
Nevertheless, it would be helpful if you consult with a Silicon Valley legal firm.
With, cryptocurrency small business owners can move their enterprise to the next level.