Bitcoin has traditionally been seen as the realm of nerds and hackers. But the fact is that businesses can get a lot of benefits by accepting Bitcoin in return for providing their goods and services. Here are a few of the reasons why businesses should start accepting Bitcoin.
Cross-Border Fiat Payments Are Slow
The traditional financial system provides easily accessible ways to process international payments. However, these options tend to be rather slow. Bank transfers can take days. While online alternatives like PayPal offer advantages over traditional banks, PayPal is not accepted in every country.
Bitcoin can offer a solution to the sluggishness of international finance. Bitcoin payments can be processed and sent to the other side of the world within a few minutes. All you and your customer need are digital wallets that accept Bitcoin.
Cheaper Fees for Payments
We have provided great articles for understanding things in the cryptospace. Here is a great article to give you an overview of Bitcoin business expansions, “Bitcoin Adoption: Where are We?” by Kenny Fowler
Many payment processors charge a flat fee for each transaction and a percentage on top of that. PayPal charges 2.9% per transaction on funds coming from a U.S.-based PayPal account plus a fixed fee depending on what currency is used. They charge 4.4% per transaction amount plus the fixed fee for purchases coming from PayPal accounts outside the U.S. In physical store locations, PayPal charges a 2.7% fee in the U.S. and 4.2% fee outside the U.S.
There are no fees for a merchant who accepts Bitcoin. Companies who use Bitcoin payment processors like Bitpay will pay 1% to have their Bitcoin converted and direct-deposited into their account. This is much cheaper than what credit card processors or online processors like PayPal charge in fees.
Every merchant who accepts credit cards has to accept the risk of credit card chargebacks. Cardholders are given a certain window of time to file a dispute with you. This can be as long as 60 days. It can be quite scary when you think about it that the money you have earned can be reversed back from where it came at any time.
Chargebacks are not possible with Bitcoin. Since a transaction cannot be reversed, it is completely up to the merchant if he or she wants to refund a payment to a customer.
Less Competition Within the Bitcoin Niche
Bitcoin enthusiasts do not form a large percentage of the population—yet. In fact, countries like China have banned cryptocurrency outright. But even though Bitcoins are illegal in some countries, this does not change the fact that the holders of Bitcoin in those countries want to spend them. Catering to Bitcoin enthusiasts is no different than marketing to any other niche market. Accepting Bitcoin can build loyal customers of those who prefer to buy your product with Bitcoin. You can enjoy all the other benefits of accepting Bitcoin while building a following in a niche market that will likely continue to grow.
Pseudonymity and Privacy
Bitcoin is pseudonymous. What this means is that the names of the people involved in a transaction are not tied to the transaction. Bitcoin is not completely anonymous. Someone who knows someone’s buying patterns can identify patterns and link someone’s wallet address back to them. But this is much more difficult than stealing your bank statement and simply seeing it right there on the page. This pseudonymity applies to both the sender and recipient.
Bitcoin is Convenient for Mobile Users
Practically everyone has a smartphone these days. While there are many ways to pay with a smartphone, such as Apple Pay, Bitcoin is very convenient for paying with mobile devices. And doing so doesn’t involve middlemen who charge exorbitant fees.
A great way for users to pay or receive Bitcoin is the Census Note. It is a hardware wallet the size of a payment card that can be conveniently carried like one. You can interact with the wallet through the Census mobile app. It is great for those who are new to cryptocurrency or those who want to onboard their friends into the world of Bitcoin so they too can experience all its great benefits.
There are several benefits that a business can enjoy from accepting Bitcoin. Trying to accept fiat payments from other currencies through the traditional financial system can be slow and expensive. Even online payment processors can be expensive. Bitcoin allows you to accept international payments with less delay and lower fees.
By accepting Bitcoin, you can avoid chargebacks by capricious customers who simply want to skip out on a charge. With Bitcoin, it’s up to you whether to give a customer a refund or not.
Catering to Bitcoin enthusiasts can build a loyal customer base that will only grow as time goes on. Bitcoin also provides both buyer and seller more privacy than any type of fiat transaction can. Bitcoin is also mobile-ready and easy to send and receive using a mobile device.