There is a lot going on in the debate about whether or not cryptocurrencies should be accepted as payment online. While traditionalists are nervous about embracing and adopting cryptocurrencies, these new innovations can be a huge benefit to everyone involved. This includes people who transact with the company, the company themselves, and the economy in general. Here are a few reasons why online companies should accept cryptocurrencies as payment.
Protection from Fraud
One of the best features of blockchain technology is that it is, by far, a more secure technology than the solutions we currently use. When applied to online transactions, the technology behind cryptocurrency means that clients and customers don’t need to give out their personal financial information. This is way beyond traditional banking systems that require authorization information in order to bridge the gap between the digital and analog logic of online and traditional money-exchange. In recent times, hackers and cyber criminals have become increasingly adept at hacking businesses to access customer data. This opens up susceptible companies to huge liability suits. Having cryptocurrency technology woven into the framework of online transactions can provide a necessary level of added security.
Reduced Transaction Fees
If you’ve ever transacted online, you will have had everyone’s least favorite experience. This may involve discovering that there are fees you need to pay, often set at high rates, for the privilege of doing business. It’s no secret small online businesses suffer a great deal due to the considerable processing fees for accepting credit or debit card payments. Rates for processing are usually at least 3%, with other flat fees added on top. Cryptocurrency allows costs to be lower and therefore allows fees to fall.
Easier Foreign Payments
One of the many reasons why online companies hesitate to go global is the nightmare of dealing with currency exchanges and foreign transaction fees. Not only can they prove to be an accounting challenge, but they are also pretty expensive for smaller companies. Intermediaries like PayPal charge fees that are around 3.5% to 4% (3.9% on average) of the global transaction. Cryptocurrency can resolve this difficulty because they are a global mode of payment. This means that they can completely eliminate additional fees on foreign payments. Code is borderless; Using a code-based currency allows you to exist in a truly global marketplace without being penalized. It’s no puzzle how beneficial reducing the fees from 3.9% to $0 can be for companies seeking to go global.
Accepting cryptocurrency as payment has a whole range of other advantages. These advantages include the fact that it allows faster transactions and receipts unlike regular payments that take a few days to appear in your account. Advantages also include reduced paperwork and physical documentation, and considerable advantages in doing cross-border business. So if you’re running an online business, you might want to consider tapping into the incredible benefits that you get to enjoy by adopting cryptocurrency as payment.