While your company may have already come to a decision regarding whether or not to accept payment methods such as PayPal, Apple Pay, and debit and credit cards to your website, determining whether or not you will take payments from customers in cryptocurrency can be a whole different process. Accepting cryptocurrency works more like accepting payments in a foreign currency rather than simply accepting a new payment method. And while there are lots of benefits of accepting cryptocurrency payments to your business today, there are some drawbacks that might be worth considering before you come to a final decision.
What is Crypto Payment Processing?
Cryptocurrency payment processing is a modern payment option where customers pay for goods and services online using cryptocurrency rather than fiat currencies using options like debit or credit cards. Whether or not vendors or merchants use crypto payment solutions, the development of the modern cryptocurrency industry has been pushing lots of companies to consider new payment solutions when doing business with customers online.
The Main Reasons to Accept Cryptocurrency Payments
Cryptocurrency makes near-instant, cheap, and borderless payments possible. Because of this, when you accept cryptocurrency payments, customers located all over the world can purchase products or services from your country even if they don’t have access to a traditional bank or even the internet. Accepting transactions in cryptocurrency can also be beneficial for companies that sell high-ticket items. This is because large transactions are almost instant, compared to most traditional methods of payment that might take some additional time to clear and become available. Cryptocurrencies are also universally recognized, rather than being tied to the specific exchange rate of a country. This can make them a very useful payment option for international eCommerce companies.
Some of the top benefits of accepting cryptocurrency payments for your business include:
Cryptocurrency payment processing is a lower-risk payment method that reduces your likelihood of unforeseen circumstances like bank account blocking, transfer rejection and more. Funds are stored through strong encryption, and along with this, it can help with increasing customer service, customer loyalty levels, profitability, and competitiveness.
Expand Your Customer Base
Today, there are more than 85 million people using cryptocurrencies, and the number of people who are interested in the crypto market is only continuing to grow. More and more people are becoming distrustful of modern financial systems, while others like the idea of digital money and confidential transactions. With the benefits of cryptocurrency becoming more and more attractive to a growing number of people around the world, integrating crypto payments for your business can be a great way to grow your customer base and reach out to a wider audience.
When accepting payments in a fiat currency through a traditional payment system, there is always the risk of dealing with problems like transaction rejections, regulators checking transactions, chargebacks, or the account or card used for the payment being blocked. With cryptocurrency, the situation is different as blockchain transactions are non-refundable and there are no regulators or payment systems to block cards or freeze funds.
The Impact of Accepting Cryptocurrencies on Your Customer Relationships
Along with the traditional benefits of accepting cryptocurrencies such as instant payments and the ability to take payments from customers anywhere in the world, making steps to accept crypto as a payment method for your business can also have a positive impact on your relationship with customers. While using crypto as a main form of currency is not yet as mainstream as other payment options like credit cards, the fact is that more and more people are beginning to embrace it and accepting it for your business means that you are making a positive, forward-thinking impression on customers.
Accepting payments made in cryptocurrency can help your company attract a younger, modern customer demographic that are quickly beginning to prefer cryptocurrency transactions for their simplicity and anonymity. More and more customers are starting to feel safer making payments in cryptocurrency due to the security and anonymity that this option brings. To make it even easier for your customers to pay in cryptocurrencies and further improve the relationship that your business has with them, you may want to consider using a cryptocurrency converter tool like OKX.com.
What are the Potential Risks?
While there are undoubtedly lots of benefits of accepting cryptocurrencies for your business, there are some key risks to consider. The three main risks of accepting cryptocurrency payments include a lack of knowledge about keeping cryptocurrencies safe and secure, the fact that cryptocurrencies can be quite volatile, and the regulatory and tax schemes surrounding crypto can be confusing depending on where your business is located.
Before you consider whether or not this will be the right option for your business, it is also worth thinking about transaction fees, liquidity concerns, and counter-party risks that are associated with cryptocurrency exchanges. Cryptocurrency exchanges work in a similar way to a payment processors for companies that don’t directly accept cryptocurrencies, allowing you to convert it into fiat currencies. However, storing crypto coins in an exchange can leave it more vulnerable to hacking and theft.
How Your Business Can Accept Cryptocurrencies
If you have done some research and there are more advantages than there are risks for your business when it comes to accepting cryptocurrency as a form of payment, then you might be wondering where to start. The first thing that you are going to need is a digital mobile wallet or a point of sale (POS) machine that can accept cryptocurrency payments. Software and equipment that are designed to be used for accepting cryptocurrencies will make sure that your company and your customers enjoy a smoother payment experience when using cryptocurrencies. If you are selling online, there are several plugin options that you can use to make it easy for customers to check out their baskets with cryptocurrency. Many are designed to automatically integrate with the most popular eCommerce platforms.
No matter what kind of business you run, accepting payments in crypto can be an ideal way to run a more modern company, attract a larger customer base, and enjoy less risk and more security.