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Bitcoin is so popular nowadays that it is on every headline and everyone’s lips. Traders use Bitcoin to increase their income, but did you know businesses have started to embrace it, too?
Small or large, all companies can reap the benefits of adopting Bitcoin and its underlying technology. Payment processing, security, and transaction costs are just some areas accepting cryptocurrency could improve. This is also a chance for small businesses to stand out from competitors and take the digitization route. It’s a well-known fact that virtual currencies don’t involve a third party, such as a money transmitter or bank, to validate transactions, so it would be much easier for companies to pay vendors or handle payments from customers. Established companies that run overseas will also find it much more reachable to conduct cross-border payments and demolish barriers. Building a new payment rail is achievable once you understand how it operates and how it distinguishes itself from conventional methods. If necessary, research how to buy Bitcoin and how to use it to pay for goods and services to see the upsides for yourself before incorporating it into your company.
Here is how you can benefit from accepting Bitcoin and help your business succeed in these uncertain times.
Simplified cross-border transactions
Unlike fiat currencies, digital currencies work worldwide, meaning that you can make and accept payments from customers and vendors from all around the globe. That is the most recognized benefit of embracing Bitcoin as a payment form, and it’s understandable. This is beneficial if your company exports goods or acquires materials from other countries as it facilitates transactions and reduces the processing time. Moreover, you avoid exchange rates or foreign transaction fees, which can be downright substantial, depending on each state’s laws and requirements in this regard.
Bitcoin can enable transactions using four methods:
- enhancing payment processing
- distinguishing from the competition
- breaking through barriers
- the Internet of money
Improved payment processing
You may know how annoying it is to wait for the money to become available in your bank account. This could take days, depending on the sender’s location or bank. But you don’t have to wait that long if you start accepting Bitcoin as a form of payment. Generally, the transactions are made in real time, so the chance for the recipient to receive the funds within seconds is high. While hundreds of financial services firms charge fees, Bitcoin allows you and your customers to conduct transactions inexpensively at little to no cost. Both parties thus benefit from payments made in Bitcoin – businesses accumulate the revenues needed for future expansion, and customers receive what they pay for in a flash.
Businesses that support remote work can find this highly beneficial, too. For example, suppose you have remote workers from various countries. In that case, you often find yourself in such a situation where the payment of salaries is late – not to mention the transaction fees involved in this process. That’s because you transfer money in your country’s currency, but it has to be delivered in another country’s currency. This is daunting for most entrepreneurs, even those who run large and established companies, as in the long term, it can lead to huge losses from paying fees and employee dissatisfaction (who wants to receive their wage later than usual?).
Increased reach
The enhanced payment processing system makes it possible for your business to lure more customers. That’s because consumers can pay for goods and services within seconds and hence avoid the hassle of an intermediary verifying their transactions. You’re also likely to reach a new audience – the crypto enthusiasts. It’s important to understand that the use and adoption of this kind of asset have reached such a level that many people choose it over conventional assets. The more consumers familiarize themselves with digital currencies, the more they will use them to pay for goods, whether it’s about day-to-day products like groceries or luxurious items like cars and jewelry.
While these crypto enthusiasts might still be a niche market, it’s likely to become wider once more people discover the advantages of using virtual coins instead of fiat currencies. However, we don’t tell you to give up on traditional forms of payment at once and accept only Bitcoin. Consider, instead, making the transition gradually – the idea is to provide customers with as many payment options as possible, as this ensures they follow through with their planned purchases.
Additional security
Due to decentralization, virtual currencies are protected from government control, which provides more safety and security to those adopting them as payment forms. Since nothing links them to a financial regulatory authority, digital currencies are safe from economic crises such as hyperinflations and bank failures. This is good news, indeed, but it doesn’t mean it’s all fine and dandy. Lack of regulation can lead to hacks and scams that could impact your company’s finances. So, regardless of the top-notch security provided by blockchain technology, you still have to be mindful of online security practices. To keep malicious actors far from your digital wallet, ensure you rely on a robust account password and hide the private key associated with this wallet in a safe box.
Reduced transaction costs
If you accept Bitcoin or other cryptocurrencies, you have two options: either involve a go-between or deal directly with the client. When there is no intermediary, the transaction costs are minimized. Small companies can benefit from this option to compete more favorably in the market and save a substantial percentage on each transaction. You can save considerable money by adopting Bitcoin as a form of payment for your products and services, as well as a payment method to remunerate workers. Since you no longer have to share your hard-earned revenue with some intermediaries, you’re likely to make more significant savings and direct them towards business improvement. We’re sure there are aspects that could be enhanced within your company, whether we talk about business operations or the work environment.
Many companies have already taken the cryptocurrency route and made Bitcoin a form of payment. Would you do the same?
