Since its inception in 2009, Bitcoin has come a long way. While it certainly has made a name for itself in the financial world, it’s yet to be accepted as a method of payment by a better part of the world. Some leading companies like Microsoft and PayPal are already accepting Bitcoin and other cryptocurrencies as a method of payment through their respective payment processing systems. It can be regarded as an amp-up call for business owners around the world. Especially looking at how the consumer demand for Bitcoin payment options is increasing.
Therefore, to keep up with the ever-changing financial landscape, businesses should consider accepting Bitcoin payments at their ventures. Here are the advantages of accepting Bitcoin payments for business.
Business Benefits Of Accepting Bitcoin Payments
- A Wider Customer Base – There’s a large number of people who prefer to pay digitally. Things like microtransactions and in-app purchases that require digital payments are now becoming a staple in consumers’ everyday lives. It may not take long for Bitcoin to enter this chain and become an average method of payment in regular business transactions. By accepting Bitcoin payments, businesses would not only open themselves to a wider customer base but would also bring diversity to their standard payment systems.
- Lower Transaction Fees – Central banks are based on a centralized system, and are subject to include typical deposit and withdrawal fees. On the other hand, Bitcoin transactions are made on a decentralized network, which paralyzes any third-party involvement of any kind. This means that there are very little to no transaction fees associated with Bitcoin payments. Likes of maintenance fees, returned deposit fees, and overdraft charges are completely immobilized in Bitcoin transactions.
- Better Security and Privacy – Transaction frauds are becoming more and more common with each passing day. In 2020, more than 450,000 credit card fraud instances were reported globally. But with Bitcoin transactions, that won’t be the case. Assets that operate on the blockchain are considered more secure than any of the credit or debit cards out there. This is because they don’t require any third-party verification or approval. Bitcoin transactions are securely recorded on the blockchain ledger that makes it nearly impossible to steal someone’s identity.
- Peer-to-Peer Transactions – Bitcoin transactions are conducted on a peer-to-peer (P2P) basis. Meaning that no third-party company or authority has control over it, but the users themself. These peer-to-peer payments are performed on the blockchain and are recorded publicly. P2P transactions have a lesser chance of risks and fraudulent chargeback disputes in comparison to the transactions that include any third-party authorities like central banks etc.
- No Chargebacks – Many small business owners are always in danger of credit card chargebacks. That, however, isn’t the case with Bitcoin. Bitcoin transactions are irreversible and hence permanent. This means that refunds can only be provided by the party that received payments. No third-party authority can return the payment to the customer, but only business owners. This makes it much easier for small merchants and vendors who often suffer from credit card chargebacks.
- Diversification – Bitcoin is an asset that can be used both as a method of payment and as an investment. Therefore, accepting Bitcoin payments will also bring a sense of diversification to businesses. Monetary diversification has benefits of its own, including the compounding of interests, safety to the capital, and peace of mind to name a few.
With many benefits to both businesses and customers on its side, Bitcoin may soon become a mainstream payment method. Business owners would be wise to accept Bitcoin as a method of payment sooner rather than later. Looking at the current statistics, it won’t be a surprise if more and more companies start accepting Bitcoin payments in the coming years. Therefore, visit now this website to set-up cryptocurrency payments infrastructure in your business before it’s too late.