Why More Businesses Are Accepting Crypto Payments

Cryptocurrency has been on quite a journey since the release of the first cryptocurrency, Bitcoin, back in 2009. Today, there are tens of thousands of cryptocurrencies, many of which have practical applications, including being used for payments.

An increasing number of businesses are accepting cryptocurrency payments alongside traditional card and currency payments, and all the signs are suggesting that this is a growing trend. In the not-too-distant future, it’s reasonable to expect that paying with cryptocurrency will be as normal as swiping a credit card.

But what does this mean for businesses? Moving with the times is vital for staying relevant, and many businesses have already taken the step to begin taking this form of payment. It’s not hard to see why. While crypto is still developing, it already offers a number of advantages that make it appealing to businesses looking to give themselves a competitive edge.

Still on the fence about whether your business should begin accepting crypto? We’ve put together a list of some of the most commonly cited reasons for businesses accepting this payment method, which might just convince you that the time is right for your business too. 

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Costs are Lower

Anything that helps to improve a business’s bottom line is welcome. Cryptocurrency payments can do just that. Crypto transactions are often cheaper to process than debit/credit card transactions. For card payments, businesses typically have to pay around 1.5% – 3.5% in fees, plus a fixed processing fee, which can quickly add up. Cryptocurrency payments can be significantly cheaper, ranging from 0.2% to 1% of the total transaction value. While that wouldn’t have much of an impact on low-value payments, it can be significant when selling high-ticket goods. 

It Can Help Attract New Customers

Did you know that 55 million Americans hold crypto? And not only that, but 39% of those Americans have shopped using crypto, and nearly a quarter of people who don’t hold crypto said that they would if they had it. Given the increasing adoption rate of crypto, it’s better to assume that those people will one day buy using crypto.

Accepting crypto allows a business to tap into this growing customer base. In fact, if a business’s target audience is on the younger side — the largest demographic of crypto holders are 25 – 34 year olds — then failing to integrate crypto into your payment methods is akin to leaving an opportunity on the table. Crypto users are out there and want to spend using their digital wallets. 

It Makes It Easier to Expand Internationally

Looking to expand internationally, but don’t want to go through the time-consuming, often complicated process of setting up an international payment system? Then cryptocurrency is just the solution you’ve been looking for. Crypto is a borderless payment system, allowing businesses to bypass the need to have a local bank account in the country in which they wish to operate. International payments also tend to have higher processing fees than domestic payments. Allowing international customers to pay using crypto removes those fees, since you pay the same low cost percentage regardless of where the crypto payment is being sent from. 

Transparency is Getting Better

Cryptocurrency payments were historically viewed with skepticism by businesses, which often thought — not entirely incorrectly — that it was a risky way to accept payments. But that was in the past. The crypto space has matured significantly, and today there’s more transparency than ever before. Online tools, such as an OP block explorer or a blockchain explorer for other networks, make it easy to verify transactions, offering businesses another level of security that the payments they receive have gone through. The cryptocurrency industry has also gone to significant lengths to make trust and transparency a central component of the market, strengthening peace of mind.

It’s Faster

Many businesses struggle with maintaining cash flow, with one study finding that more than 90% of business owners often face cash flow issues. In some cases, those cash flow issues are caused not by a lack of payments but by the fact that the business is still waiting for the payment to arrive in its bank account. In some cases, it can take days (and in some cases, weeks) for money to work its way through the intermediary channels and eventually arrive in the business account.

Cryptocurrency removes this problem. When a payment is made, it’ll be available within minutes. Not days, not hours, but minutes. In other words, accepting crypto payments can be an effective way to quickly get the money that’s rightfully yours, without waiting around. 

It’s a Lot Easier Than Many People Think

Cryptocurrency has a reputation for being complicated and overly technical to use. But actually, while that was true once upon a time, it’s no longer the case. While the underlying technology that drives crypto payments can be considered complex and technical, actually using it couldn’t be easier. There is a range of crypto payment processing tools that are intuitive to use, and they also often integrate with existing POS and e-commerce platforms. Add in the transaction tracking tools that we mentioned above, and it couldn’t be easier to accept and verify crypto payments. 

Other Businesses Are Accepting Crypto

As we said above, there are now thousands of businesses accepting crypto payments — and the number is rising all the time. With crypto now a major player, you’re going to see an increasing number of online and real-world businesses accepting crypto payments in the not-too-distant future, including some of your competitors. Taking steps to accept this payment method now can give your business a competitive advantage, putting you ahead of the curve before it becomes commonplace. 

It’s a Move to The Future

Finally, many businesses are accepting crypto payments because it demonstrates that they’re a future-focused business that isn’t afraid to innovate and respond to market and customer shifts. Even if the rate at which your customers make use of your crypto payment service, simply offering crypto payments will demonstrate that you’re a business that has one eye on the future as well as the present.