Benefits For Companies to Accept Cryptocurrency

Cryptocurrencies are digital currency that are revolutionizing the financial sector and all businesses are trying to keep up with it. Cryptocurrencies operate on a direct seller and customer approach. It is not regulated by the government or any other authorial institutions. It functions as a global currency.The decentralized market nature makes it difficult to regulate its transactions and many aspects of it are still being regulated by government and FIAT regulations bodies.

With all these benefits in hand, people are investing in cryptocurrencies more and more. Therefore, companies are also looking into digital currency as a form of payment from their customers. Let us take a look at the benefits that companies might get from making digital currency as an acceptable method of paying. 

Customer Convenience- Many customers find it easier to make their payment via digital token. It allows them to pay for their product with a certain level of anonymity granted by the digital currency transaction. Compared to bank transfers, payment via crypto requires less customer data.  

Increased Sales- Cryptocurrency functions as a digital currency that does not stay limited to geographical borders. Therefore, customers from any country can make purchases as long as they are making their payment via cryptocurrency. This is another reason why companies and small businesses are accepting crypto as a legitimate method of payment. It does not require one to wait for hours for their payment to get through. Absent middle men such as banks or other financial institutions, payments to the business gets done almost immediately and quickens the pace of the business. 

Lower Transaction Fees- Cryptocurrency functions without any middleman regulating between the seller and the customer. Payment via crypto also reduces any transaction fees that the seller might incur. Payment via credit card swipes costs the seller 25 cents per card swipe. On top of that a transaction fee of 2% to 4% applies on the total cost of the product that the seller has to compensate for. In such cases, payment via cryptocurrency helps the seller with a lower transaction fee. Cryptocurrency can lower the transaction fee to as low as 1% of the total cost of the product. That is why, many companies, especially small businesses, are welcoming digital currency as a form of payment. However, Ethereum applies gas fees which levies charges per transaction. 

Merchant Protection- Cryptocurrency also grants companies merchant protection. It has a decentralized setup model which gives the company and the merchants protection from fraudulent chargebacks. 

These are some of the benefits that encourage big corporations as well as small businesses to accept cryptocurrency as a method of payment. Cryptocurrency provides both the sellers and buyers a safe way of storing their money. Rather than storing their money under some authorial institution, crypto allows one to store their money through an encryption that only they themselves are beholden to. Thus, it makes both storing money and transactions safer. 

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