10 Reasons Why Your Business Should Accept Bitcoins
You’ve started your own business and use the widely accepted means of payment, such as credit card and PayPal. However, you’ve been considering adding Bitcoin - or any other cryptocurrency - as well, either to boost your popularity, support the ideology behind it, or to bolster crypto adoption rates. It’s no secret: accepting Bitcoins can be challenging due to price volatility.
In spite of that, here are ten reasons why your business should accept Bitcoins. Mind that these reasons may not work for everyone equally, as there are certain risks associated with using Bitcoin, too.
Credit card fees usually run around 2-3%. Bitcoin fees do not depend on transaction size, but on how quickly you want your transaction to be processed. Senders compete by paying more money to the miners to get their transactions processed as soon as possible.
At the time of writing, the median transaction fee is approx. 1 USD. Therefore, the larger the transaction is, the cheaper it becomes. However, Bitcoin fees also depend on the network congestion fluctuate - at the end of 2017, the median transaction fee surpassed 30 USD.
If the fees of the Bitcoin network are too high for you, or you simply want to transact in smaller amounts, you can also consider setting up a Lightning Network wallet, which lets you send and receive Bitcoin transactions up to 0.168 BTC only.
However, Bitcoin fees are only relevant if you’re considering sending transactions. There’s little to none fees associated with receiving BTC payments, though!
2. Safety from Fiat Exchange Rate Risk
Bitcoin is certainly volatile. But most merchants who currently accept it set prices in their local currency and get paid in their local currency, too. Bitcoin itself acts only as the medium through which the transaction takes place.
Here, a Bitcoin payment processor service with existing point-of-sale integration might help. Such companies can even deposit the money in your bank account in your preferred currency once payment has been made. That would help reduce risks related to the Bitcoin exchange rate, but they do charge transaction fees though.
See our other guide for more information on how to integrate Bitcoin payments into your business.
3. International Sales
Bitcoin transactions allow you to expand your markets to basically anywhere. The only limitation is if you’re selling a physical product - where you’d be willing to ship. Since you skip banks altogether, you don't have to deal with waiting for ~3 days for the transaction to complete. Transfer limits and outrageous fees also become a thing of the past.
4. No Chargebacks
As every merchant knows, fraudulent chargebacks are quite a headache. Dealing with them can sap a considerable amount of time and energy that could otherwise be spent on growing your business. Bitcoin transactions are completely irreversible, so you skip this problem altogether. Whether the customers claim has any merit can be decided entirely by you.
5. Ease of Use
When you start, Bitcoin is easy to use, and only getting easier with time. There is no need to understand the technology behind the coins completely to accept them - nobody asks you to know how backing (or lack thereof) works for fiat currencies either. You do need some basic knowledge, but it’s easy to come by these days. The only area that needs special attention is how to secure your Bitcoin wallets and coins.
Bitcoin adoption is still in its early days. Being the first business in your niche to accept Bitcoin can earn you headlines in cryptocurrency news portals. You can submit your website to communities like:
Doing so is likely to gain you more customers, as many Bitcoin enthusiasts are eager to use it.
7. Cutting-Edge and Forward-Thinking Brand Identity
If you’re a “cutting-edge” brand or have established yourself as a “thought leader” and “early adopter,” then adopting Bitcoin as a payment method sends a clear statement to your audience. Even if it’s just another buzzword to add to your portfolio, it can hardly hurt.
Traditional transactions may take a long time, especially when making international bank transfers. You might have to wait for up to one week before funds can be successfully transferred from one country to the other. It is even worse when you want to transact on weekends or holidays. The delays can be frustrating.
Although you may have heard that Bitcoin has slow transaction times, this is just relative to the crypto industry in general. Compared to banks, Bitcoin is still incredibly fast, and your cross-border transaction can be completed in minutes. Besides, you can speed it up using the Lightning Network.
9. No Third Parties
Most payment options often involve a third party. When you have money in your bank account, it is the bank that has an ultimate say, despite the money being yours. If they deem it necessary, they can freeze your accounts and render you moneyless. As a business, this can result in significant losses, delayed orders, or other repercussions. Bitcoin is decentralized, and this means only the buyer and seller are involved.
10. New Markets
Use of digital currencies has enabled businesses to access new niche markets that might not have been accessible before. For instance, in some parts of Africa and Asia, few people have access to good banking services. It often locks them out as they cannot transact with people in other geographical areas. The only obstacle is whether you’re willing to ship (in case you sell a physical product) to a particular geographic area.
Continue learning about cryptocurrency by reading our Bitcoin guides. For more information about how to use Bitcoin in your store or which businesses have already integrated Bitcoin as one of their payment options.