7 Reasons You Should Start Accepting Bitcoin Payments Now
It's estimated that hundreds of thousands of stores all over the world are now accepting bitcoin and other cryptocurrency payments. It was announced earlier this year that by 2018 over 260,000 retailers in Japan would begin accepting bitcoin.
"Forward-thinking merchants of all sizes around the world are glomming onto the hot Bitcoin payments trend, many of them to cut costs and boost their bottom line," says Adam White, director of business development and strategy at Coinbase.
Coinbase, who sometimes adds 50,000 users a day is just one of the many companies trying to bring this technology into mainstream. Some of the largest companies accepting Bitcoin are Microsoft, Intuit, Dish Network, Expedia, and Overstock.
Below are the 7 reasons you should start accepting bitcoin payments.
1. Lower Transaction Fees
By accepting bitcoin and other cryptocurrency payments you can dramatically cut down on transaction fees from card issuers and third party point-of-sale applications. Smaller merchants pay 2 to 4 percent per credit card transaction, often with additional “hidden fees” heaped on that quickly add up.
2. Get Paid Quickly
Accepting Bitcoin payments can put cash within your reach faster than it does when you accept credit card payments. With credit cards, a lot of times your funds can be locked up for a week or more and there held in a sort of escrow in case someone requests a chargeback. Exchanges like Coinbase can get cash into your bank account usually within 1-3 days.
3. Avoid Chargebacks
Bitcoin purchases are irreversible, so there are no chargebacks and no returns, like those rife in credit card dealings, yet another way transacting in the virtual currency saves merchants money. When a chargeback happens, not only does the credit card company withdraw the money for a transaction from your merchant account and deposit it back into the customer’s, you typically also get slapped with a costly chargeback fee. These can put you back between $5 and $15 each, according to CardFellow.com.
4. Prevent Fraud
People can pay businesses in Bitcoin without sacrificing personally identifiable information (names, billing addresses, etc.). Because of this they enjoy a level of identity-theft protection that credit cards simply can’t offer. It’s important to note, though, that Bitcoin exchanges that operate in the U.S., including Coinbase, must collect personal identifying information from their users to remain KYC compliant. This makes it nearly impossible for someone to fraudulently spend bitcoin they don’t own.
5. Accept International Payments
Small online retailers and independent consultants often don’t sell their wares and services internationally because of expensive cross-border transaction fees, sometimes up to 8%. Bitcoin relieves the steep cost of going global, making cross-border payments easier, faster and cheaper. Instead of going through all the fees and hurdles of converting currencies, you can send bitcoin, which is accepted globally.
6. Customer Satisfaction
Accepting Bitcoin as a payment method could lead to increased levels of client and customer satisfaction. With Bitcoin rapidly growing in popularity and value, it will be unsurprising if over the coming years, this currency is the default. Offering your clients and customers the option to make payments with Bitcoin allows you to give them more choice, and therefore more control over the way they make payments and interact with your business. Furthermore, the added layer of protection from fraud and identity theft offered by Bitcoin can make this payment method a very attractive one to online customers who want to be as safe as possible.
7. The Competitive Edge
The reason our capitalistic society works is Competition. By accepting bitcoin, you will have a competitive edge over your competitors. Adding another revenue stream and keeping your traditional customers could be the reason a small business beats out their rival. Don’t be afraid to try new technologies, even if it means being the first mover in your area. It's important to remember that when the Internet first came out it was slow, confusing, and slowly adopted. The Internet went on to become one of the most important inventions of all-time. There's no promise that cryptocurrencies are the next major advancement in technology. However, if it is, being early to the party could be what it takes to lift you above your competition.