With the emergence of different payment methods, business owners have broken the boundaries of catering to local customers. Now, you can even have a customer from a place you’ve never heard of. This means you can further maximize your profits.
However, not only can you accept payments from people across the globe, but now, you can even accept cryptocurrency payments aside from fiat currencies. Cryptos, like Bitcoins, are digital currencies using cryptographic functions to complete a transaction.
If you’re wondering why many entrepreneurs are now accepting Bitcoin payments, check out the following reasons to determine whether you should join the trend:
1) Offers Safe Transaction
Before a customer engages in any purchase, they want to have the assurance that they’ll make a safe transaction. Especially when your products or services are quite expensive, consumers will think otherwise if you don’t offer them a secure payment method. But, if you accept payments with Bitcoins, you’ll offer them a safe transaction.
It’s because when customers pay with bitcoin, they don’t need to divulge their billing address, real names, and other critical information, unlike typical payment methods that require personal identity, which exposes your customers’ anonymity.
As a result, even when they pay you a huge amount of money, you’re protecting your customers against identity theft.
2) Accepted Worldwide
Aside from anonymity, people from all over the world can acquire bitcoins. That’s why accepting Bitcoin payments lets your business accept international customers. Unlike with regular money payments, some can’t buy dollars or your fiat currency because they don’t own a bank account.
Although banks don’t regulate or control Bitcoins, many countries have legalized the use of Bitcoins. One of the many reasons why many governments have accepted Bitcoin is due to its protocol.
Bitcoin protocol consists of public-key cryptography and digital signature to complete a transaction. A digital signature or mathematical scheme verifies the authenticity of a digital document or message. Afterwhich, a cryptographic system pairs up the public and private keys to make a bitcoin transaction.
This bitcoin transaction doesn’t need any third party as it uses hundreds of computers known as nodes. These nodes find and collect bitcoin transactions that become part of the block. Thus, no single entity governs the bitcoin protocol, which means every individual can own a bitcoin.
3) Doesn’t Get Affected By The Economy
Even when countries have accepted bitcoins, bitcoin’s value doesn’t rely on the economy of any country. So, whether your economy is not doing good, the value of bitcoins can still rise or fall only because of its demand.
Unlike standard money that can inflate over time, bitcoin is finite, which means that there’s no risk of inflation since bitcoins have a maximum number that can circulate. But, if one wants to increase the supply of Bitcoins, one should solve a mathematical puzzle. Thus, if new investors want more Bitcoin, the Bitcoin price goes higher.
So, if you have Bitcoins from your business sales, you don’t need to worry about whether your economy is doing good or not.
4) Lower Transaction Fees
Another reason to accept Bitcoin payment is its ability to offer lower transaction fees. This advantage attracts more consumers since they want to purchase without those extra charges.
With regular money payments, it’ll pass through third parties, which creates higher transaction costs. Since Bitcoin transactions don’t require a third party, you’ll pay lesser transaction fees.
Also, if you use credit card payments, you pay two to four percent processing fee. With Bitcoin payments, you can save your revenue from card fees. In short, not only are you helping your customers pay less when purchasing your service or product, but you’re also saving your revenue.
5) Doesn’t Have Chargebacks
Aside from transaction fees, normal money payments have chargebacks that occur when a bank reversed or returned a credit card payment on behalf of the cardholder. If a chargeback happens, you, as a merchant, are at a disadvantage.
For instance, if your consumer requests to remove the fund from your account, then you’ll pay a chargeback fee aside from the fund removal from your account.
With Bitcoin transactions, chargebacks don’t apply because any Bitcoin transaction is not reversible.
Bitcoin payments can benefit your business as it can attract more consumers, especially the ones investing or holding Bitcoins. Since Bitcoin payments offer anonymity and protection against identity theft, more consumers are willing to pay for your product or service.
Not only do your customers benefit from Bitcoin payments, but you, as a merchant, as well. Since you can avoid higher transaction fees and chargeback fees, you can have more revenue.