Many brick-and-mortar stores and online businesses are seeking various payment options to serve their customers better. Besides being an investment vehicle, bitcoin is a reliable form of payment, and that’s why many businesses accept it. Like many online payment methods, bitcoin users can pay for goods and services from anywhere since they don’t need to travel to a store or bank.
Business owners can receive payments from anyone around the world without approval from external authorities. Since it’s essential to do your homework before accepting any payment system, consider the following pros and cons.
Pros of Accepting Bitcoin Payments
Reduced Transaction Fees
Lowering the transaction fees is similar to reducing your prices or offering discounts. Bitcoin is designed to provide customers with an affordable shopping method compared to other payment options. Besides the low fees, users enjoy autonomy as they don’t have to deal with intermediary authorities such as banks and other financial institutions.
Since these institutions charge fees for wire transfers, digital currencies have a clear advantage. How to reduce the transaction fees:
- Check when transaction fees are lower than normal
- Combine several payments into one input
- Choose the right wallet
- Choose a low-priority fee that’s cheaper but takes longer
Clients get annoyed when they eat in restaurants or go to grocery stores that only accept cash.
No Risk of Inflation
Currencies that hold their value against inflation will stand the test of time. Businesses that earn money from online transactions need to retain that value to avoid unexpected losses.
When governments print money to fund various projects and bail out some private companies, they create an inflationary pressure on dollars and other currencies across the globe. Like gold, cryptocurrencies don’t fluctuate during turbulent economic times and may even have the potential to appreciate. Following are the reasons why bitcoins maintain their value:
- Limited in supply
- High demand
- Built-in algorithms that hedge against inflation
- Value cannot be manipulated by printing money
Bitcoins are controlled by decentralized systems that make them immune to manipulation and inflation. Many customers that have already adopted this system seek reliable ways of buying goods and paying for services. So, businesses that accept bitcoins will have the upper hand.
Easy to Use in Any Situation
With credit cards, your customers have to follow stringent standards and undertake extensive security checks. Before authorizing a transaction, the bitcoin system verifies these details automatically and cuts the red tape significantly making their purchasing process easier. Plus, your clients don’t incur additional costs when processing the information.
The early adopters of this digital payment methods record higher sales since:
- Bitcoin is accessible to everyone
- Money is transferred over the internet
- The currency is controlled by a decentralized network
- It’s easy to create account from anywhere
- Merchants and customers verify the payment details instantly
Accepting this digital currency will draw more customers that are looking for places to spend their bitcoins.
Digital currencies are safer and less cumbersome than fiat currencies. Since the user-friendly platform is optimized for mobile, this borderless payment system provides an easy way to carry out transactions and track your payments. If you want to jump into the bandwagon, follow these easy steps:
- Download the Bitcoin Wallet app for windows or Android
- Create a new wallet with your personal details
- Find a trusted broker and create a shared wallet
- Fund your wallet from your bank account
- Click buy with bitcoin and give the merchant your QR code
With so many payment options that include credit cards and digital currencies, businesses should offer as many payment options as possible to avoid losing out on a large customer pool. Customers need to do their research by determining the current bitcoin price and keeping track of the changes.
Cons of Accepting Bitcoin Payments
It’s Not Widely Accepted
Like any currency, few disadvantages are associated with bitcoin. These include:
- Some shops don’t accept crypto currencies
- Creating a digital wallet is a complicated process
The volatile bitcoin market can dissuade many people as the value can dip in a matter of hours. But keen investors understand that the value increases in the long run despite the highs and lows.
Why Businesses Should Accept Bitcoin Payments
Digital currencies are gaining immense popularity, and many people are using them to safeguard the value. Although bitcoin is a long-term investment tool, it guarantees quick payments and error-free business transactions. Besides hedging against inflation, bitcoin is a reliable form of payment, and that’s why every merchant should embrace it.