Why Your Business Should Accept Cryptocurrency Today

Cryptocurrency, and more importantly Bitcoin and Ethereum, became mainstream from being niche in the last decade. As of 2023, the usage of cryptocurrency across the globe had surpassed 400 million, and the number is continuing to grow annually, according to Statista. Blue-chip firms like Tesla, PayPal, and Microsoft have already begun accepting cryptocurrency payments within their systems, setting the stage for others to do the same.

This wider adoption is based on a number of reasons such as increased trust in the blockchain technology, the emergence of decentralized finance (DeFi), and necessity for an alternative to the conventional banking system. The fact is, cryptocurrency is no longer a trend. It's fast becoming a global asset class, and what companies need to be looking at now is no longer whether or not to accept payment in crypto, but when.

The greatest benefit of the use of cryptocurrency is access to a worldwide marketplace without the hassle of currency exchange or payment fees. Cryptocurrencies operate on decentralized networks, meaning they are not beholden to any country or bank. This makes it possible for companies to tap into customers worldwide without the hassle of cumbersome foreign transactions.

For example, if you’re a business based in the U.S. and a customer from Japan wants to purchase a product, accepting cryptocurrency eliminates the need to convert currencies or worry about international wire fees. The payment can be made quickly and securely, regardless of geographical location. By accepting cryptocurrency, your business can tap into emerging markets where digital currencies are already widely used, such as Southeast Asia, Latin America, and parts of Africa.

 

These old forms of payment like bank transfers and credit cards come with fees, and these add up eventually. The merchants have to pay 1% to 3% as a fee to the issuers on each transaction, and there are also chargebacks and fraud fees. Bank transfers, particularly cross-country transfers, also come with a great deal of associated fees.

Conversely, cryptocurrency transactions will usually be much less expensive. Bitcoin and Ethereum network fees, for instance, are generally lower than payment processing fees. Although there are slight variations in fees in instances of network traffic, cryptocurrency is otherwise much less expensive than the existing payment systems.

Also, by cutting out middlemen such as banks and credit card companies, companies reduce the indirect cost of international transactions. That can translate into greater margins, particularly for companies that depend on overseas customers.

 

Security is one of the biggest issues for businesses that do transactions online. Credit card fraud, identity fraud, and chargebacks are issues that have been costing businesses billions annually. Additional security is provided with cryptocurrency via blockchain technology that is tamper-proof- and fraud-proof.

Cryptocurrency transactions are encrypted and recorded on a decentralised blockchain, hence making them almost impossible to be reversed or tampered with. The result of this is that once a transaction has been made, it cannot be reversed or contested. Another reason is that since cryptocurrencies do not ask for the customer information or credit card numbers, companies will not be likely to fall victim to fraud.

 

The strongest argument to accept cryptocurrency is to cater to a younger, older, and technology-accepting generation. Millennials and Gen Z are not just more inclined towards using digital currencies, but also appreciate innovativeness and firms that embrace new technologies. As the popularity of cryptocurrency is on the rise, these generations increasingly desire businesses that have crypto payment platforms.

By adopting cryptocurrency, your business will be distinctive and have a dedicated base of admirers who believe in online innovation. From online stores to service providers to physical stores, being accepted in crypto can prove to be a desirable selling point among younger consumers.

Moreover, cryptocurrency supporters are also famous for being a very interconnected society. By providing an accessible ability to pay via the use of cryptocurrency, you can naturally end up with a devoted, dedicated customer base that will patronize businesses that share their values and interests.

Traditional banking systems and payment platforms must take days to clear cross-border payments if there are different time zones or holiday periods involved. Crypto payments clear in a matter of minutes with the geographical location of the payee playing no role.

There are no banking hours or time limitations on cryptocurrency. A transaction can be done at any time, 24/7, which means your business can receive payments anytime. This is especially beneficial for e-businesses and service providers based in other regions of the world, where different time zones can result in delayed payment processing.

Secondly, technology offered by blockchain ensures transparent and irreversible payments, and thus both the seller and buyer are able to trust the system to the fullest. This assures faster and secure payments, and this is a double benefit for businesses as well as consumers.

Bitcoin and cryptocurrency in itself has been often called "digital gold" because it is reported to be a hedge against inflation. In contrast to fiat money, which can be printed by the government and can be prone to inflationary forces, the majority of the cryptocurrencies have a limited supply. Bitcoin itself has a limited supply of 21 million coins and hence is immune to inflation forces.

For companies that operate in nations with fluctuating currencies, the utilization of cryptocurrency can act as a hedge against devaluation. In countries that experience high inflation levels, the domestic currency can depreciate quickly, and for companies it becomes challenging to remain profitable. With the utilization of cryptocurrency, companies are certain that they are not losing value in terms of payments and therefore have greater stability and certainty in their revenues.

 

Blockchain technology, the underpinning of cryptocurrencies, is an open, unchangeable record of all transactions. All transactions are logged on the blockchain and traced back to their source, building an unbreakable and transparent system of accounts that can't be tampered with. This transparency can be valuable to businesses that are reliant on accurate record-keeping, auditing, and accountability.

To businesses that have to adhere to regulatory demands, cryptocurrency can make it easier to monitor and report transactions. The blockchain provides an open book that can be verified, cutting down on the likelihood of mistakes or misrepresentation and making it possible for all transactions to be accounted for.

 

Staying current with cryptocurrency will make you a trendsetter. As consumers and businesses transition to cryptocurrencies, having it as an option will differentiate you from your more resistant-to-change competition. Being among the first to the party is one way of turning your business into a trendsetter, which can get consumers to want to do business with you if they enjoy doing business with businesses on the forefront.

The shift to digital currency will only continue to spread in the years to come. Getting in on cryptocurrency early means you'll be leading the pack and prepared to take advantage of results in the field of cryptocurrency.

 

It's never been simpler to start taking cryptocurrencies. Businesses can accept cryptocurrency payments on their website or at their point of sale through several platforms and payment processors, including Coinbase Commerce, BitPay, and CoinGate. These platforms tend to offer simple dashboards, secure wallets, and automatic tax reporting to make it all easier.

Companies will either accept well-known cryptocurrencies such as Bitcoin, Ethereum, and Litecoin, or even newer altcoins based on consumer demand. It helps to establish what most used cryptocurrencies your target clientele utilizes and begin from there.

 

Cryptocurrency is transforming the business world at a pace, with faster, more affordable, and more secure means of making payments. By embracing the likes of cryptocurrency payments these days, you can open up a global audience, reduce your transaction charges, safeguard yourself from fraud, and reach the attention of a younger, technology-inclined audience. Business is changing, and operating with digital currencies can keep your business in line and make the best out of everything that blockchain technology has in store.

One of the easiest and most effective ways of accepting cryptocurrencies as payment is through a full solution such as Oppi Wallet. Streamlines crypto payments enables businesses to securely hold digital transactions, and even offers virtual cards to enable seamless customer interaction. No matter what your needs are - accepting mainstream cryptocurrencies, experimenting with decentralized finance, or simplifying your payment flows - Oppi Wallet's intuitive user interface and secure environment make it the perfect solution for businesses poised to take advantage of the future of finance.