Competition has no bounds, when it comes to corporations and merchants. This means that businesses can either make it or break it in the marketing world.
But now, with the rise of cryptocurrency, competition has never been greater, which is why finding an advantage that helps a company stand out becomes key. In other words, welcoming cryptocurrencies might be the competitive edge that you need for your business.
Here are 8 reasons why merchants should get on board with including crypto in their payment methods:
1. Instant Transactions
In traditional payment methods involving credit and debit cards, it used to be that the vendor will receive money on their account within 3 or more business days, due to several agents being involved in that transaction. In many cases, vendors can’t wait 3 or more business days to generate much-needed revenue.
But with cryptocurrency, transactions are faster, thanks to blockchain. Although Bitcoin transactions can be slow at times, it usually takes only 60 minutes to complete the process rather than several business days.
2. More Convenient
It’s obvious that consumers want quick service; and they want the same for transactions.
As mentioned above, while traditional funds can take business days to become available in the vendor’s account, cryptocurrency is a faster payment method for both consumers and vendors since it shows up in the account right away. In fact, cryptocurrency is growing to become the preferred payment method for businesses that export goods and services from country to country.
In short, convenience is (and should be) one of the top priorities for merchants, so that there’s no unnecessary payment delays, slow conversion and exchange procedures, or other hassles.
3. Lower Commissions
For merchants, bank commissions can be a huge pain. How bank commissions work is that vendors receiving credit card payments must pay fees of nearly 25 cents for every operation, plus up to 4% of the deal total.
However, crypto settlements remove any intermediaries, so that the transaction costs can be reduced up to 1%, thus making bank commissions cheaper for vendors.
4. Payments Without Borders
When entering international markets, you’ll have to deal with difficult and expensive exchanging processes. Why would a business want to waste time on bypassing borders, when they could be busy selling and earning?
But with cryptocurrency, there are no such thing as geographic borders. Crypto transactions allow merchants to raise sales, as well as attract new clients and boost profiles.
5. Safer And More Transparent
Customers not only want faster transactions, but they also want businesses to be transparent about their practices, along with a safe and secure server to do business in. With that said, here are some of the ways that cryptocurrency makes safety and transparency possible:
- Companies can utilize blockchain to ensure secure payment processes with cryptocurrency.
- Systems like Payment Protocol will prevent the possibility of making payment errors, and will automatically link to, say, BitPay’s server. If anything goes wrong, BitPay will reject the transaction right away. Thus, the user will know that a mistaken payment won’t penalize them by taking money away.
Plus, companies must always listen to feedback from their customers, so that they can learn from their mistakes, if any mistakes happen to arise. And, this is how companies can be more transparent to people.
6. Debit Card Acquisition
With cryptocurrency, debit cards that accommodate to them are meant to simplify the process of using digital balance directly. As a result, they’re seen as very useful for online and offline shopping or for cash withdrawal from an ATM.
With their easy-to-use tool, these debit cards allow you to keep the most of your money in cryptocurrency to use it in your daily life, thus converting it to fiat in a quick and cost-effective way.
Here are some of the most popular cryptocurrency cards that are being offered:
- Wirex, AND
7. Allows Companies To Welcome New Customers
As a business, your ultimate goal should be to reach out to as people as possible. In fact, companies are always trying to attract new customers; and one of the best ways to do so is to offer a lot of payment options that they can choose from. In other words, the more payment options you offer, the better.
That’s where cryptocurrency comes in!
Since more and more people are relying on cryptocurrencies nowadays, why not welcome these customers with open arms? Although cryptocurrencies are still treated as a concept for now, it’s still not too early to consider utilizing them as possible payments. Once you accept cryptocurrency as a payment method, you’ll be selling to more and more people at a faster rate.
8. More Custodial Solutions
With cryptocurrencies being on the rise comes the concerns on safety issues. Between 2018 and 2019, a handful of cryptocurrency exchanges began to launch custodial services that combined different types of hot and cold storage methods. Here are some examples of crypto exchanges that offer these services:
For larger investors, custodial solutions are needed when working with cryptocurrencies. By entrusting their assets to third parties that specialize in adequate storage, investors will pay for higher security and get insured against any scenario where they might lose funds. Fortunately for these investors most of today’s custodial products are offered by companies with a wide range of investment services, and are meant to serve institutional clients. Here are some of the best custodial service providers to date:
- BitGo Trust
- Xapo (one of the oldest Bitcoin wallets)
No matter what, customer behaviors will change over time, along with their preferred payment methods. And with the rise of cryptocurrency, a newer and, perhaps, more desired payment method is introduced, and is already being utilized by consumers and companies. And, with this utilization, comes stronger competition.
So, to keep up with the ever-growing competition and the ever-present need for cryptocurrency as a payment method, it’s important, as a business, to stay in the loop. With the 8 reasons above, it’s more apparent that cryptocurrency is rising, and will continue to rise in the marketplace; and all merchants should consider this newer payment method to attract new customers and get that competitive edge against your rivals.
Michael Dehoyos writes and edits at Academic Brits. As a content marketer, he helps companies in their marketing strategies and concepts. In his spare time, he likes to learn coding, and blog about technical writing.
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