As a smart business owner, you are always looking for ways to capitalize on current trends to increase your sales and profile within your industry. One of the biggest trends in today’s business world is a cryptocurrency, specifically Bitcoin. Becoming a more mainstream form of payment for many customers, especially younger ones, you may be wondering if the time is right for your business to accept cryptocurrency. Before making your final decision, consider these pros and cons.
Lower Transaction Fees
If you accept credit cards at your business, you know all about the transaction fees associated with them. In many cases, it can cost your business 25 cents per card swipe, and as much as four percent of the transaction total. However, cryptocurrency differs in that it is not regulated, meaning no government or central bank is associated with it. Thus, since your customer would transfer their funds directly to your business, no third party is needed to process payments, effectively eliminating your transaction fees.
Fraud Protection
If over the years your business has had problems with credit card fraud or other related issues, accepting cryptocurrency could give you enhanced fraud protection. Since Bitcoin is decentralized, a third party cannot perform a fraudulent chargeback and reverse the charges. In essence, paying with cryptocurrency is like a customer paying you cash, making the transaction final.
Increasing Your Sales
Being a decentralized currency, this means Bitcoin can be used by people around the world, making it a universal form of currency. Because of this, you can learn more about it from EQIFI and discover you can open up your business to the entire world. By choosing to accept cryptocurrency, you may suddenly have customers from various nations eager to buy products from you that may not be readily available where they are located.
Technological Barriers
If there is one major downside to your business potentially accepting cryptocurrency, it is that you will likely need to make a sizable investment in the technology needed to accept Bitcoin. To begin with, you will need to create a digital wallet on a digital currency exchange, which is not easy to do and can be rather complex to understand. Also, you and your employees would need to become very familiar with many new procedures, which also costs you time and money.
Ultimately, it will be up to you as to whether or not you decide to accept cryptocurrency. With its various pros and cons, you should talk over this potential move with a business advisor you know and trust.
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