Cryptocurrencies have been causing quite a stir in the world of finance with their dramatic value fluctuations. At one point, the value of Bitcoin, the first cryptocurrency, went up to almost $20,000, and even though it dropped by 30% after this surge, it’s still going strong. Many companies have started accepting cryptocurrencies, but when it comes to small business owners, this is still uncharted territory into which they’re reluctant to tread. One of the reasons for such an attitude is their lack of understanding of this monetary concept, while others result from falsely perceived risks. Let’s dispell these fears, and explain how small business owners can benefit from accepting cryptocurrencies.
Decentralization
The original idea behind creating a cryptocurrency was to bypass the corrupt and monopolistic monetary system imposed by big corporations and banks. Conceived in the midst of the financial crisis of 2008, the first cryptocurrency was an answer to the centralized payment network in which people didn’t have full control over their money. Cryptocurrencies decentralized the payment process by allowing you to make a purchase and pay to the seller without any third-party involvement. Basically, such a practice cuts out the middlemen thus eliminating any costs associated with their services. In addition to that, this peer-to-peer financial system also gives you a certain degree of freedom when it comes to your money because no bank or government can’t freeze your assets.
No fees
This is one of the most important reasons why small business owners should switch to cryptocurrencies. In the traditional monetary system, banks and other payment platforms act as intermediaries which process transactions and take a fee for that. These fees vary, but for every credit card payment which you receive, a credit card processing company will take 2-3%. Before the introduction of cryptocurrencies, you simply had to go with the flow and settle for this kind of system. Fortunately, now you have another option, and there’s no reason to pay someone to facilitate transactions between your customers and you. In other words, you can either save the money you would otherwise spend on processing fees, or even better use it to lower your prices thus attracting more customers and increasing your bottom line. Buyers, on the other hand, pay a fee, but it’s significantly lower than in traditional payment networks. Dash is one of the best payment options, and over 40 million merchants worldwide allow their customers to use this cryptocurrency in order to pay for goods both online and in stores. This whole procedure has been simplified as there are various apps and services which make it easier for users to sell Dash securely. Also, if they want to sell Dash safely, they can offer it by creating a listing on one of trading platforms and finding potential buyers.
Transactions are faster
According to some estimates, it takes 10 minutes give or take, for a cryptocurrency transaction to be finalized. This is much shorter than the usual 2-3 days required for the money to be transferred to your account in the traditional banking system. A great portion of small merchants’ skepticism towards embracing cryptocurrencies can be attributed to the fact that they think this whole payment process is too complicated, or that they need to be experts in this field. But this is just a misconception, and, no, you won’t have to express your prices in a cryptocurrency. Generally speaking, using cryptocurrencies as a payment method is fairly simple – all you have to do is set up your cryptocurrency wallet or purchase a POS machine which supports crypto. Besides speeding up your cash flow, this payment method will be good for your bottom line because customers prefer when they can choose how they will pay and don’t forget that millennials, who currently dominate as global customers, are keen on experimenting and they’re more willing to invest in cryptocurrencies than in regular stocks and shares.
No chargebacks
This is good news for all sellers because cryptocurrencies don’t allow transactions to be reversed, so, once the payment is finalized there’s no chargeback option. This means that customers can’t dispute a charge and that merchants are protected from fraudulent practices such as the use of fake credit cards or dishonest customers who contest their prices or demand refunds if they change their mind about the product or service they purchased. The more chargeback claims there are against you, the more you’ll be under credit card issuers’ scrutiny which can seriously damage the reputation of your business.
A high level of security
Last but not least, the blockchain technology on which cryptocurrencies heavily rely ensures the security and incorruptibility of transactions. Since there’s no central bank database where the data about transactions and customers is stored, it’s virtually impossible for malicious hackers to break into the system and manipulate ledgers for their own benefit.
If you’re still having second thoughts about introducing a cryptocurrency payment solution, take these 5 benefits into consideration before you make your decision.
