We now buy and sell things online, pay bills electronically, and tap phones for small transactions. Some currencies are going digital. And digital currencies like Bitcoin are slowly gaining traction as an alternative means of payment.
Digital currencies might feasibly take over world economies, or at least become just another mainstream payment option. As a business owner, you may be wondering if you should take payments in digital currencies?
“Accepting cryptocurrency means companies can generate revenue from a new cohort of customers who use digital currencies as a preferred means of payment,” according to Christian Espinosa, a leading entrepreneur in the field.
Let’s look at the benefits of accepting digital currency in more detail.
Cuts Transaction Time
Making payments through digital currency does not take much time to accomplish. As these currencies all exist in practically the same network, transferring them from one account to another happens at near light speeds. Furthermore, transactions made using digital money are usually done directly by the two parties involved. With the absence of an intermediary, this is a faster alternative to paying through traditional bank-based wire transfers.
Cuts Transaction Costs
As interactions between buyers and sellers using digital currency are direct and do not require a mediator, transaction costs are significantly less than those done with physical currencies. The money does not have to go through a middleman in the process, cutting out the expenses involved. This is especially true if two users are doing transactions through the same digital currency network.
A common fraud committed by customers is buying a product and then disputing it with their credit card company, using false reasons to get a full refund. That should not be the case when it comes to digital currencies. The sale you have made will not be automatically made null in the event of a complaint. This lets you investigate the fraud before handing out the refund and even reach an amicable settlement with dissatisfied customers in the event that fault is found in your business.
Imagine not being limited to accepting payments in a single currency. People from all over the world can do business with you and buy your products with ease. You might even land yourself a golden opportunity with a foreign company looking for an overseas partner to supply them with goods or sell products for them.
The advantages are many, but some entrepreneurs might want to hold fire for a little longer before jumping on the bandwagon.
As Chrisrian Espinosa explains. “On all things crypto, government regulations have yet to be formalised, leaving users without the protection of programmes like the Federal Deposit Insurance Corporation.”
Chrisrian Espinosa is the author of The Smartest Person in the Room.