5 Reasons Why You Should Use Cryptocurrencies In Business
24 Jul, 2018
3 Min read
Digital commerce has increased dramatically as more consumers make choices to shop online, especially in the United States and China. In fact, data from Statista projects up to $4.5 trillion of online sales by 2021 growing threefold from where numbers stood back in 2014.
With consumers holding more and more money in digital wallets, and with cryptocurrency expanding in new directions, many businesses are now finding ways to adopt cryptos into their cash flow, from artists selling albums for bitcoin, to companies like Brave Software’s Basic Attention (BAT) which lets audiences pay for content creators.
This is just the tip of the iceberg.
Here’s why business owners should get on board with accepting cryptocurrency payments:
1. Lower Transaction Fees
Many cash-only business owners balked at the idea of accepting credit cards and debit cards decades ago because of the hefty 3 to 5 percent transaction fee associated with accepting this payment method.
Cryptocurrency actually costs business owners much less in transaction fees, with the typical range being a few cents on the dollar up to 1 percent. Over time, this could save business owners a significant amount.
2. Reduced Chargeback Rate
Chargeback fees are a significant problem for business owners, and they generally have no recourse for a false chargeback claim because the buyer protection policies that are in place with major credit card companies are so stringent. A business owner can face a penalty of up to $25 for each transaction that’s charged back, with no way to contest the fee.
With cryptocurrencies, on the other hand, every sale is treated like cash. There’s no bank for unsavory customers to file chargebacks through, which means that if they have a problem with the product, they can contact to the business owner or merchant and work it out through the refund or replacement policy.
3. Attract Millennials
When a company announces they have started to accept cryptos, they’re seen as a step ahead of the competition in terms of embracing and adopting cutting-edge technology. This forward-looking approach can make a company or organization more appealing to millennials, who are more likely to be early adopters themselves and use today’s mobile payment solutions.
A full 33% of millennials are expected to be involved in cryptocurrencies by the end of 2018, so business owners shouldn’t waste any time implementing the technology needed to accept crypto payments.
4. Get Paid Instantly
Accepting DASH, BTC and other leading altcoins is easier than ever, and it’s much faster than the 3 to 5 day wait times associated with bank transfers. With crypto payment apps, the customer scans a QR code on the POS, and the currency is automatically withdrawn from the customer’s digital wallet before being deposited into the business crypto wallet. There, it can be spent as-is, or withdrawn or transferred.
Crypto transfers have the potential to be near-instant, allowing the business owner to increase his cash flow substantially, with no latency between making a sale and getting paid.
5. Get Started Accepting Cryptocurrencies
To accept cryptocurrencies as a payment method, businesses can become part of the DASH merchant network, which includes dozens of online and physical businesses worldwide.
Merchants who accept cryptocurrencies frequently look to an easy solution to hold and transfer the payments to a traditional currency or deposit to their local bank. Uphold, a digital wallet, can help by providing an easy way for customers to send DASH, bitcoin, and altcoins (and an even easier way to convert, withdraw, or spend those funds).
Business owners deciding to accept cryptocurrencies have good company. In the coming months and years, the demand for cryptocurrency acceptance will grow as digital wallets become more mainstream. Business owners can get ahead of the curve by accepting cryptocurrencies in 2018!