Did you know businesses are able to earn 40%+ new clients if they accept crypto payments? Yes, you heard it right. Crypto has shown numerous advantages as a payment mode over fiat currency and smart customers have taken an increasing interest in crypto-based payments. The best part is, crypto for business offers a win-win situation for business owners. On one hand, cryptocurrency assures faster, cheaper, and anonymous payment for customers. On another note, crypto for business benefits companies with all these advantages- and offers the added advantage of increased rate of customer acquisition and retention. Visit multibank.io
The post below underlines the top benefits of using crypto for business.
Advantages of using crypto for business
Over 18,000+ businesses accept crypto payments today and the number is only growing. According to analysts and experts, crypto might soon overtake fiat in the race of top favorite online payment systems, especially for eCommerce merchants.
- Near-instant payment processing
One of the major advantages of using crypto for business is that it allows way quicker payment processing compared to fiat currency. Cryptocurrency is devoid of any kind of centralized control and follows direct P2P transaction procedure. Absence of intermediary makes the process faster, simpler, and more convenient for merchants and their clients.
- Lower fees
Every smart entrepreneur looks out for ways to save costs. And you can save a huge bunch if you use crypto for business. Fiat payments usually charge high rates, especially when done through credit cards. Traditional payment processing platforms too charge expensive rates for fiat-based payments. Then, if you do bank wire transfer, you have to pay a certain amount of hefty fee to your bank. But, crypto for business always assures lower fees. As crypto is not controlled by any centralized authority or a bank, you don’t have to pay any kind of fee to a bank for processing crypto payments.
- Easier and more affordable access to international markets
Ambitious entrepreneurs don’t want to limit themselves to local markets. Rather, they aspire to reach out to international waters and expand their business globally. Business expansion in foreign markets inevitably involves international transactions and that’s not only expensive but also immensely time-consuming when done through fiat currency. Plus, there is the added hassle of exchanging the international currency (that you receive as payment from foreign clients) into your local currency. The exchange process, when done through fiat, charges high exchange rates and also involves a lengthy process.
Added to the customers, a company might need to deal with international vendors if it is planning for global expansion. The payment transaction process with vendors too involves the same problems and hassles mentioned above, if executed through fiat currency.
This is a significant place where you need crypto for business.
- Quicker and cheaper cross-border transactions
It has already been mentioned that crypto for business facilitates faster and cheaper payment transactions compared to when done with fiat. And, that applies to cross-border payments as well.
A lot of businesses, especially small businesses, are apprehensive of reaching out to international waters due to high costs associated with international transactions and exchange rates. On another hand, some companies tend to overprice their offerings for foreign markets to compensate for the exorbitant fees associated with cross-border transactions. But, if you use crypto for business, you won’t have to encounter such high transaction rates on international payments as associated with fiat. Also, you won’t need to overprice your offerings for foreign markets and it will eventually help you to attract more foreign customers.
- No need to exchange
A phenomenal advantage of using crypto for business is that, unlike fiat, crypto is a universal currency. Thus, if your business is based in California and you receive payment in Bitcoin from a foreign client based in France, there is no need to exchange Bitcoin to a local currency. You can conveniently use Bitcoin in your local market if your local merchants accept crypto for business.
- No risk of chargeback fraud
Credit card payments have often grabbed headlines for rising incidents of chargeback fraud. So, what is chargeback fraud? Well, it’s a nefarious act where fraudsters and scammers reverse or cancel that payment made after receiving the product. Put simply, chargeback fraud leaves the merchant with no payment for an offering that he had sold to a client.
You can eliminate risks of chargeback fraud if you use crypto for business. How so? Well, as you know crypto is developed on blockchain technology and blockchain boasts an immutable ledger. It’s next to impossible to manipulate or tamper with any transaction data that has already been registered into the blockchain. This way, the immutable quotient of blockchain prevents any attempt to reverse payment recorded on its ledger. So, if you use crypto for business and allow your client to pay in cryptocurrency, s/he will never be able to reverse the payment made. In other words, crypto for business saves you from major losses that could otherwise be caused by the growing number of chargeback frauds today.
- Allows to guard customer privacy
A major reason why a bunch of customers are still apprehensive of online payments is the huge amount of private information that they have to share during the process. But this is a problem associated with fiat currency and not if you use crypto for business.
The underlying technology of cryptocurrency enables businesses to assure anonymity for customers if they use crypto for business. With crypto for business payments, customers don’t have to share confidential data like identity details. As a result, when a person makes a payment with crypto for business, nobody can track his/her identity from the payment information- even when the payment has been made online.
- Increased rate of customer acquisition and retention
Based on the discussions above, payments made with cryptocurrency assure a host of great advantages and more security for customers. It’s self-explanatory why a growing range of customers are increasingly banking on companies that use crypto for business.
When your firm uses crypto for business it shows that your company actually cares for the security and convenience of the clients. Customers always prefer to do business with companies that can ensure a comfortable and credible environment for them.
Put simply, acceptance for crypto-based payments will enable your company to quickly earn the trust of customers and also leverage your competitive edge.