“Now, lots of big-name companies are allowing customers to pay with the cryptocurrency” — Paul Ebeling
The Big Q: Should your business start to accept cryptocurrencies?
The Big A: That depends largely on your customer base, business model and desire to learn about crypto.
Overstock, Dish Network and AT&T offer customers the option to pay with Bitcoin. PayPal added a “check out with crypto” option in March that lets users to pay with Bitcoin, Litecoin, Ethereum and Bitcoin Cash at merchants that use PayPal Checkout.
This is how to deside if cryptocurrency is right for your business, as follows:
Reading a cryptocurrency guide is a good starting point. Also you will want to consult with your accountant and make sure you are clear on the tax implications and reporting requirements of accepting digital currencies.
Cryptocurrency is a digital currency. And, while it can be easily adopted by e-Commerce businesses, it’s less suited for traditional retail settings now.
And it is challenging to scale accepting crypto payments in a brick-and-mortar setting with multiple employees and many POS (point-of-sale) devices. But it will happen.
Cryptocurrency has advantages over traditional payment methods, including:
Lower fees: Processing fees for crypto payments are typically 1% or less. On credit card transactions, businesses pay an interchange fee of 1% to 3% per transaction, plus processing fees and other charges set by the merchant services provider.
No chargebacks: Payment disputes are a major pain point for small businesses, which are on the hook for the refund and potential chargeback fees if a payment is reversed by a customer’s bank. Chargeback fees depend on the payment processor.
There are no chargebacks in crypto. Transactions cannot be reversed by the customer and refunds can be issued only by the retailer.
The 1st step to accepting crypto is to establish a cryptocurrency wallet and sign up for an exchange like Coinbase or Gemini so you can convert any payments received into cash. Then, you can add a payment button to your website, use a QR code or share your public wallet address to accept payments.
Crypto adoption is skyrocketing: This year, global users grew from about 100-M to more than 220-M from January to June, according to the cryptocurrency platform Crypto.com and payment volume will follow.
Have a prosperous day, Keep the Faith!