It is now estimated that around 106 million people worldwide have invested in some form of cryptocurrency as of 2021. Of that fact, around 22% of the adult population in America owns some form of Bitcoin investment.
Cryptocurrency, of which Bitcoin remains the leading currency, has become a big talking point in the finance world. So big in fact, that it’s led many online and offline retailers to consider accepting bitcoin as a payment option.
There are a number of benefits to providing cryptocurrency payments in your business. Let’s outline some of the major advantages so that you consider this option for yourself in the future.
How Can Businesses Accept Customers Paying With Bitcoin?
Before we start on the advantages, let’s first explain how exactly businesses are able to accept bitcoin payments.
Bitcoin functions in many ways like any currency. So if your customer owns bitcoin, it’ll be worth a certain amount of American dollars. In this manner, you can charge the exact same price for your products that you would normally to bitcoin buyers.
However, the way bitcoin actually operates is slightly different due to it being a cryptocurrency.
If you’re an online business, you’re in luck. Many of the largest online e-commerce platforms today, like Shopify, have the option to integrate cryptocurrency payments through their system.
This means you only need to include this option on your e-commerce store on the respective platform you use. If you’re an offline business though, or you don’t use one of these platforms, there may be more issues.
It’s usually worth working with an expert company in these situations. There are companies around today that can assist with bitcoin services. That includes things like accepting payments to assessing investment potential.
If you’re looking into bitcoin banking, for instance, you could research companies like Byte Federal. Make sure to find the right support for your business, before you start accepting any cryptocurrency.
That way, you’ll know exactly what you’re getting into, and how to manage payments properly.
Now, let’s go into some of the many advantages of accepting bitcoin payments for your business.
Open Your Business up to More Potential Customers
The first major benefit is the ability to open your business up to more potential customers.
By accepting more currencies, you’re able to attract buyers who use that currency to buy goods.
A good example is if you’re looking to attract Chinese buyers. In this case, you’d want to advertise your products with a Chinese currency price tag, the renminbi.
Though it can be hard to believe for some, the reality is that bitcoin is now a major financial entity. There are in fact people who refuse to trade online through their local currency like dollars.
These people prefer the added security involved with crypto or may have more money in crypto than dollars.
Whatever their reason, these buyers will want to pay using bitcoin. Without providing this option, you could be missing out on potential buyers for your products.
If you’re accepting bitcoin, this makes you a viable shopping destination for these individuals. It also means that you’re able to market your products to more people overall.
By accepting bitcoin, you’re opening your business up, rather than closing it off for some people.
Integrate Bitcoin ATM Options Into Your Marketing Campaigns
Another advantage of accepting bitcoin is the ability to integrate this into your marketing campaigns.
You could initiate a new campaign, to announce that you’re starting to accept bitcoin payments. You can also integrate this option into any existing marketing channels you currently have.
This can be a great way of evidencing just how cutting-edge and forward-thinking your company is. A lot of companies, including major worldwide players, have yet to jump onto the crypto train.
You can evidence that you’re company is at the very forefront of your sector by being ahead of the curve. There are no real limitations to how you incorporate crypto acceptance into your marketing channels.
Bitcoin advertising is particularly useful using digital marketing and online channels. This is thanks to the nature of cryptocurrency today. But you can also include bitcoin logos or other marketing measures in your offline marketing channels.
If done correctly, it can completely change the way your business is perceived by your target market.
This can help to build your overall brand image as something worth investing in. This will work better if you’re targeting a specific demographic, which is in fact its own separate advantage of accepting bitcoin.
Allow Your Business to Attract Specific Target Demographics
Chances are if you’re marketing your business to older people, bitcoin payments may not be for you. This isn’t an all-encompassing rule, but bitcoin is a relatively new invention.
As such, there are specific target markets that appreciate the potential to pay in bitcoin.
As a general rule, bitcoin owners tend to be younger people. They are also usually men, rather than women. Though as with every statistic outliers always exist, these are just generalizations.
It can help to research bitcoin ownership demographics. That way you’ll know just how many of your potential customers may have bitcoin already.
This means that embracing bitcoin can be vital for certain businesses. If you market your company towards young men, chances are many of them will be interested in bitcoin.
If they’re investors, you can show your company is open to them purchasing using this currency. This can help build a strong relationship between you and your target audience.
Crypto can be seen by many as a hobby, or an interest. For others, it can be a full-time job.
Either way, by embracing it, you’re showing your target market you accept something they spend a lot of time doing. This builds a stronger feeling of understanding between you and the people purchasing your products.
That relationship can then be built on in the future, to create loyal, recurring customers. It also means you can rely on a steadier stream of income from people who really believe in your company and its ideals.
Better Payment Security Compared to Regular Currency
Another benefit of bitcoin impacts both you and your potential customers. This is the fact that crypto payments are considerably more secure than regular currency payments.
These days, fraud or improper payments can happen to any company at any time. In fact, credit card fraud has been on the rise in recent years.
When compared with 2019, 2020 saw a rise of 35% in attempted fraudulent transactions online by dollar volume.
By allowing crypto payments, you’re allowing way more security than regular transactions. This is thanks to the way in which bitcoin has been designed, and how its value is consistently monitored and fluctuating.
It’s also thanks to the fact that bitcoin is an entirely digital currency, which no physical embodiment or footprint. They also do not require any form of third-party verification when transactions are made.
Because of this fact, there are way more security measures around bitcoin to prevent fraud or cybercrime.
If you allow these transactions in your business, you can take advantage of this heightened level of security. You won’t have to worry about being scammed out of payment, or someone paying with a card that then somehow gets declined later down the line.
Subject to Lower Fees Than Certain Alternatives
Accepting money online in 2021 can come with many different caveats. Though PayPal is an extremely reliable and popular option, it comes with many additional fees.
Online stores these days should expect to pay charges close to around 4% per every transaction handled through PayPal at any one time. This figure is dependent on the original currency, and whether this currency needs to be converted.
But PayPal also includes flat transaction fees on many regular transactions. Certain banks will also have their own rules for accepting credit cards or foreign currencies.
This means that any online store accepting money today may be subject to fees that eat into their bottom line. With accepting bitcoin, there are far fewer fees to worry about.
Though the exact figure will differ, certain Bitcoin exchanges can be as low as less than 1% of the total transaction amount. This is a significant drop from PayPal and can save a company hundreds if not thousands of dollars during a year of trading.
Bitcoin also isn’t tied to any kind of local currency, since it functions as its own form of cryptocurrency. Thanks to this fact, it’ll never charge any form of conversion fee to change into your local currency.
Both these facts mean that bitcoin can be a more financially viable option for your business.
Accepted Worldwide, Opening Your Business to the World
This advantage links back to the above point about bitcoin not charging any conversion fees.
Bitcoin is an international currency, with investors and owners living in every country across the planet. This means, as noted before, it’s not subject to the same kind of currency charges.
But it also means that you’re able to open your business up to the wider world. People can purchase your goods or services with bitcoin from anywhere on the planet.
This can be a great way of taking your store international, and crossing borders.
As before, you can link this opening into your marketing initiatives to show how your business is expanding.
Bitcoin Transactions Are Not Reversible
Regular transactions made today can often be reversed in the right circumstances. This can be the case if someone doesn’t have the funds, or if credit cards have been stolen.
Customers may also reverse payments to refund goods, sometimes for unreasonable reasons. Or, these could be reasons outside of a company’s own control.
There are a number of reasons why payments may be reversed. With bitcoin payments, this is less of an issue for businesses.
Once a bitcoin transaction has been registered successfully, it cannot be reversed. This is thanks to blockchain technology, which is the backbone of bitcoin as a currency.
Blockchain tech will ensure that funds are always available before a transaction is made. That way, there can be no disputes on any payments made through bitcoin.
Payments Made Through Bitcoin Are Processed Instantly
Some payment options can take several days to process properly. This is particularly true for larger payments. This is because these can sometimes require verification by banks or other entities.
These third parties slow down the speed at which you receive money for the goods or services you’ve provided. In the worst cases, this time can put your company in the red, or mean you can’t expand as quickly as you should be able to.
Bitcoin is however an instantaneous payment process.
Transactions are also made immediately, every time. This means that money is received by your company faster than it might be through other payment options. This then means there’s less to worry about, as you’ll receive your funds as soon as a purchase has been decided.
Bitcoin doesn’t involve intermediaries in its service. It’s meant to reflect the feeling of giving cash hand to hand, the old-fashioned way. As a result, you can rest assured that you’ll receive the money you’re owed quickly without any fuss.
When combined with the fact that transactions can’t be reversed, bitcoin is a payment option that gives you greater peace of mind overall.
Where Can I Find Out More About the Benefits of Accepting Bitcoin Payments?
You should now know how exactly companies go about accepting bitcoin in 2021. You should also know some of the core advantages that bitcoin offers for your business today.
If you’d like to find out more about cryptocurrencies, financing, or business matters, you’re in the right place. Make sure to read through some of the previous posts on our website, particularly those in the business products and services section.