With so much online chatter about Bitcoin, many merchants are wondering whether they should accept it or not. Skeptics are scared that Bitcoin is still a new currency, and getting it would be consequential to online businesses. Others are also concerned about its high volatility, worried that investing in Bitcoin could impact considerable losses in unfavorable price fluctuations. However, several incredible qualities of Bitcoin make it a perfect match for online businesses. Here’s why Bitcoin is suitable for your online business.
Expands Your Customer Base
Every entrepreneur is constantly looking for opportunities to increase the scale of their operations and reach more customers without hindering service delivery and profitability. Accepting Bitcoin payments in your store is one of the best ways to achieve that goal. Many people are increasingly using crypto to pay for goods and services online.
Thus, integrating Bitcoin would enable you to attract a significant share of that global clientele. Besides, accepting Bitcoin will also offer your customers more options during checkout. That would impact a positive perception of your business, attracting even more customers over time. Bitcoin facilitates seamless cross-border payments, enabling you to transact with customers worldwide.
Better Transactional Security
Using Bitcoin also comes with greater transactional security since all transactions occur on the blockchain without any middlemen. Blockchain technology validates all Bitcoin transactions on an irreversible digital ledger. That goes a long way in protecting all Bitcoin users, including businesses and consumers, from risks such as e-commerce fraud.
The ledger is accessible to all users on the Bitcoin network, and none can reverse the transactions or alter the data after validation. Bitcoin transactions’ irreversibility enables your online business to avoid chargeback costs while also preventing double-spending risks. The ledger would also come in handy during payment disputes, providing an accurate record of all the received Bitcoin payments.
Relatively Lower Transaction Fees
The other benefit of processing Bitcoin payments in your store is that the transactions usually bear meager fees. The costs may vary based on whether you process Bitcoin payments through your wallet or a third-party provider like the Bitcoin Code. Nevertheless, you will still find that the fees are relatively lower than using credit cards, debit cards, or electronic payment providers.
The absence of intermediaries in Bitcoin transactions is one of the reasons why the costs are much lower than those levied by traditional payment systems. Many leading third-party payment processors usually charge businesses about 0% to 1% in transaction fees based on their sales volumes. However, you can also avoid the payment processing fees by setting up a personal wallet to accept Bitcoin directly from customers.
Prompt Payment Processing
Online businesses operate on a global market, with customers from different geographical locations. Besides, most of them rely on suppliers and distributors based in foreign countries to source and deliver their products. That is why online businesses need a highly reliable payment system like Bitcoin to expedite payments whenever they need, without going through the banks or payment processors.
Bitcoin is a decentralized currency that will enable your business to receive and send payments worldwide promptly. It will help you avoid the hassles and vast costs of exchanging money to different currencies when dealing with foreign customers and suppliers. Bitcoin’s underlying blockchain technology eliminates intermediaries from transactions, ensuring fast payment processing.
While Bitcoin is a highly volatile and new currency, it has more significant potential to give online businesses the needed transformation. Bitcoin is undoubtedly good for your online business, allowing you to expand your customer base, cut operational costs, and process payments more securely and promptly.