Considering opening up your business to bitcoin? Increasingly, companies are making it possible for their customers to pay with some of the better-known cryptocurrencies, and in doing so helping to shift the way that our society thinks about money.
It’s certainly an exciting trend to be part of… but is it right for your business?
One of the primary benefits for a small business is the low cost associated with processing crypto transactions. If you’re currently being stung by high fees every time your customers pay with a credit card or through their PayPal account, then this may be something to try.
Want to get your money sooner? Bank transfers take several days to process, but cryptocurrency payments happen immediately. While bigger businesses are unlikely to be waiting urgently for every payment to clear, it can make a real difference for smaller companies that are heavily reliant on every purchase.
It’s harder to commit fraud against a company using cryptocurrency, as it’s not possible for customers to make a payment if they don’t have the funds readily available, and it’s also not possible to request a chargeback. This means that you won’t have your time wasted by customers who had no intention of paying in the first place.
Consider the profile of your customers
Bitcoin may have become a household phrase, but ask your average person on the street and it’s very unlikely that they’ll actually own any. And even among those who have invested in crypto, it’s an even smaller percentage that actually use it to carry out transactions. If your customers are unlikely to be part of that niche group, then it may be too early to think about implementing it as a payment option.
On the other hand, companies that do deal with a crypto-savvy customer base may gain a huge amount of credibility by showing that they are open to It as an option. There is a huge culture around cryptocurrency which is only like to grow. With only a small number of businesses currently accepting bitcoin, getting in at this stage will still put you into the bracket of ‘early adopters’, helping you to embed your company within the culture.
What to do with your crypto
If you do choose to accept payments in bitcoin (or any other cryptocurrency), then you need to think about what you’re going to do with the coins once you receive them. You’ll probably want to exchange them into your regular currency as soon as possible to avoid losing any value, as they can be notoriously volatile.
Of course, depending on how you manage your company’s finances, you may also want to consider reinvesting your profits in cryptocurrency. You could hold onto the coins and hope that they gain value over the coming months and years, or even use them to trade with to maximise your profits. Trading software such as Crypto Genisus could help you take advantage of the fluctuations in the market to grow your crypto balance.