Among the most important factors for the development of a business is exceptional user experience. The key is to make it so that your customer finds the service/product they need with as little of a hassle as possible and make their online checkout process as easy as it gets.
There’s no surprise that many businesses are trying to broaden their range of online payment options, and so bitcoin and other forms of cryptocurrency payments are becoming increasingly popular.
According to a recent study from late 2020, 15,174 businesses accept bitcoin as a payment source worldwide.
As with any type of business venture, the usage of crypto for business purposes brings various benefits and drawbacks. So, before deciding to implement crypto payments, you should clearly know why you’re undertaking this action by analyzing both the advantages and risks of this venture.
Below, we discuss 4 ways how implementing cryptocurrencies such as crypto coins and tokens benefit your business.
How Cryptocurrency Payments Work
Cryptocurrency payments employ a technology called the blockchain to keep transactions secure. Customers can buy bitcoins (or other cryptocurrencies) with their preferred currency, keep them in their electronic wallets, and use the funds in their digital wallets to pay for purchases during checkout.
As the receiver of these currencies, you can use services that covert bitcoin or other cryptocurrencies to your preferred form of currency. The money will then be transferred to your bank account.
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Benefits of Cryptocurrency
1. Increased Reach
According to a recent survey, up to 40% of clients who pay with cryptocurrency are first-time customers, and their purchase amounts are twice those of credit card users.
Furthermore, according to a recent survey, 11% of consumers indicated they used a digital payment option for the first time during the COVID-19 pandemic when online shopping rates increased.
Cryptocurrency may open doors to new demographic groupings. For example, users frequently represent a more cutting-edge clientele that places a premium on transaction openness.
2. Reduced Transaction Fees
Businesses that accept cryptocurrency can either interact directly with their customers or use a go-between. As a result, the cost of a transaction is exceptionally cheap when there is no intermediary.
Smaller enterprises can use this to modify their product prices and compete more favorably in the market, as they are particularly sensitive to small cost differences.
3. Higher Security
Chargebacks are a major issue for both online or land-based businesses. Since customers can often purchase a product and then cancel the payment after trying it, this can be costly to the company and result in significant losses in the long run.
Fortunately, chargebacks only apply to transactions in fiat currency, and there are no refunds with cryptocurrency payments. Hence, customers have to contact the business directly to ask for a refund.
Furthermore, the blockchain system prevents clients who do not have sufficient funds from making a payment, decreasing the risk of time-consuming chargebacks.
4. Faster Payment Processing
With Bitcoin and other types of cryptocurrency, there’s no need to wait for the funds to clear. Unlike bank transactions, a crypto payment is received and processed in real-time, which might take several days.
Cryptocurrencies are far from penetrating the mainstream market, but their progress suggests that’s where they are headed. So if you want to get the most out of your e-commerce business, your best bet is to adopt them now and grow with them.