Cryptocurrency has been around for a relatively short time, but it continues to gain popularity. While it may have been viewed as an esoteric concept in the beginning, it’s important to understand why you might want to consider accepting it as payment in your business and what you would need to do to go down that path.
One of the most well-known forms of cryptocurrency is Bitcoin, but there are several other competitors taking part in the cryptocurrency movement, including:
How does it work?
Cryptocurrency is valuable because it is an accepted store of value. As it becomes more accepted, it also becomes more valuable, which simultaneously creates more stability in that form of money. Running on blockchain technology increases the security of the currency and allows for verification of transactions in the currency.
Despite the growing acceptance of cryptocurrency around the world, small businesses are still reluctant to accept it as a payment method. This reluctance may result in missing out on opportunities to grow business and increase profits.
There are several potential benefits to accepting crypto:
Cheaper than credit cards. The payment is transferred directly from the sender to the receiver, cutting out the middle man and greatly reducing transaction fees.
More security. Credit cards are the most popular form of payment, but every year companies are hacked for customers’ personal info—and small businesses are often targeted by cyber hackers. Cryptocurrencies don’t require personal data to be entered and, consequently, are less likely to be stolen.
Expansion into new marketplaces. With this digital payment format, companies can cross borders and avoid some of the headaches of exchanging local currencies.
Gain new customers. Consumers who use cryptocurrency are dedicated to their digital money. Cryptocurrency fans will often seek out businesses that accept this form of payment. This can open business to a new customer base.
It’s growing. As it becomes a more mature form of payment, additional brands, financial groups, and institutions are recognizing, supporting, and investing in it. Over time, it’s becoming more widely used.
Now that you understand some key benefits of accepting cryptocurrency, here are a few ways to go about accepting it as a form of payment in your business:
Let customers know you accept it. Don’t expect them to know. Use signage advising it is accepted.
Use a mobile wallet.This is a no-cost way to accept cryptocurrency using just a smartphone or tablet. Most work the same way; input how much the customer owes, the mobile wallet generates a QR code, and the customer scans the code using the wallet and confirms the transaction to finalize payment.
Point-of-sale (POS) machine. POS machines with cryptocurrency support are beneficial for businesses that accept it on a daily basis and need the ability to generate receipts and invoices. Some companies offering these products are Coinkite, Coinify, and BitPay.
Online payment. Online payment solutions for cryptocurrency are abundant. Some providers who were already offering online credit card solutions are now offering online cryptocurrency payment solutions. Fees are often less than for credit cards, they usually come with a cap, and many accept multiple altcoins. A few options are Stripe, Cryptonator, and CoinPayments.
Avoiding fraud online. There are security companies that can provide fraud protection services, such as Fraudlabs Pro. Ultimately, cryptocurrency can be accepted as safely and securely as other forms of online payment.
While the idea of accepting cryptocurrency in your business may be intimidating, it’s worth considering. The technology behind it may seem complicated, but accepting it doesn’t have to be. It could be an opportunity to grow your business and your profits!
This post was written by Dana S. Dana came to Acuity in 2016 as a workers' compensation adjuster, where she focused on handling minor to catastrophic claims in multiple jurisdictions. She also has a background in the services industry, with experience in project management and cosmetology. She graduated with a degree in community engagement and education from the University of Wisconsin-Milwaukee and serves on the Board of Directors of Mental Health America in Sheboygan County. Outside of work and volunteering, Dana loves spending time with her daughters, cooking, and practicing yoga.