(MENAFN- CCP Marketing)
Bitcoin captured the interest of many investors and business owners back in 2017 due to its rapid price increase. Since then, many business owners have been following developments in the crypto industry and the technology behind this virtual currency. But many entrepreneurs have always wondered whether Bitcoin is suitable for their small businesses.
Essentially, startups have many things to consider before announcing that they accept Bitcoin payments. However, most entrepreneurs consider Bitcoin a technological revolution that could change how people complete business transactions.
Bitcoin is digital money that doesn't require financial institutions like banks or governments to issue or regulate it. While you can't keep Bitcoin in your purse or pocket, this virtual currency is gradually becoming a mainstream payment method for different businesses. Experts estimate that over 100,000 companies worldwide use Bitcoin, including Expedia, Amazon, and Microsoft.
Many people use platforms like the Bitcoin Champion to purchase and sell this virtual currency. Such digital marketplaces enable people to access Bitcoin without investing in mining rigs quickly. And after getting Bitcoin, many people use it to pay for services and items online and locally.
With all these developments, small businesses should consider embracing this cryptocurrency. Here's why Bitcoin could be good for your small business.
Lower Transaction Costs
Unlike fiat money, Bitcoin doesn't have a central intermediary. And this reduces transaction costs dramatically. Every small business wants to minimize the cost of transactions, whether online or offline. For most startups, credit card payments attract a fee of about 25 cents whenever a customer swipes their card. What's more, these businesses pay around 2 to 4% of the total transaction. While this might seem small for a single transaction, the costs can add up quickly and account for a significant amount of a business's profit. That's why small stores can benefit from accepting Bitcoin payments because they don't have such fees.
Bitcoin is a global payment method. The decentralized nature of this virtual currency enables startups to expand their reach and open doors to foreign buyers. Thus, a small business can sell services and products to international buyers who might not have bought from them because they didn't have a suitable payment method. For instance, an electronic retailer can sell merchandise to customers in different countries while receiving payments in Bitcoin.
A Bitcoin transaction is irreversible. The decentralized setup of this virtual currency protects a merchant from chargeback problems that are common with traditional payment methods like credit cards. Like with cash, a Bitcoin transaction is final. That means no third party or user can reverse Bitcoin charges.
Catering to the Customer Preferences
Not every customer wants to pay with cash, credit card, or any other traditional payment method. Some customers prefer innovative payment means like Bitcoin. Therefore, accepting Bitcoin payments enables a small business to cater to the needs of more customers. Thus, you can bring more customers to your startup by accepting Bitcoin payments.
Every small business wants to complete transactions faster to ensure an efficient flow of funds. Bitcoin transactions are faster than credit cards. Ideally, blockchain technology verifies transactions without a centralized institution. That means your startup won't wait long for payments to reflect in its account. Bitcoin transactions are almost instant.
Bitcoin is a relatively new payment method for many entrepreneurs. However, this virtual currency is gradually becoming a mainstream payment means. Therefore, embracing Bitcoin could benefit your startup in several ways. Nevertheless, you require time to learn about this digital currency, its pros and cons before adopting it as a payment means for your small business.
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.