Your business needs everything it can get to bring in as much revenue as possible out of it. One of the strategies that should be on your table is accepting Bitcoin as payment for your goods or services.
The decentralized digital currency and the Blockchain, the public ledger that drives it, have come a long way. It is no longer that time when a reputable business being associated with it raised eyebrows. As a matter of fact, major global brands are now involved with it.
For instance, 42 of the largest commercial banks such as BBVA, UBS, Barclays and Bank of America are investing in Blockchain startups to tap into the benefits the technology offers.
Meanwhile, acceptance by merchants has kept growing. A 2015 third quarter report on the State of Bitcoin and Blockchain by Coindesk, a leading Bitcoin media company, indicates that there are now over 106,000 merchants around the world directly accepting bitcoins, up from 100,000 the previous quarter.
If you include merchants that accept the cryptocurrency through intermediaries such as Gyft.com, Shift Card and CheapAir.com, the number shoots up to about 50 million.
Probably your excuse for not accepting Bitcoin is its volatility. The good news, however, is that payment processors such as BitPay and Coinbase are there to solve this problem. They shield your business by automatically converting your bitcoins into dollars and remitting the money directly into your bank account.
With that said, the following are five reasons why you should consider having your business accept bitcoins:
According to a research by Statista, 17% of shopping cart abandonments is due to concerns about payment security and further 18% is occasioned by excessive payment security checks. Bitcoin transactions are very similar to those done through cash except that Bitcoin allows for long-distance and cross-border payments. Meanwhile, the shopper, unlike with the conventional payment methods, does not have to share any personally identifying information in order to make payments.
According to another report, up to 28% of shopping cart abandonment is caused by the lack of a payment option a shopper prefers to use. It, therefore, makes sense that the more payment options you have at the checkout on your store, the easier it is for more customers to pay. In addition, the cryptocurrency can be used from any part of the world.
For most cases, all it takes for an online store to start accepting bitcoin is to include a simple code in the system. For the brick and mortar retailers, downloading a wallet app onto any smart device will suffice. Indeed, you do not have anything to lose, while at all the times your business stands to gain.
First, unlike other types of payment methods, it costs nothing to start accepting bitcoin. In addition, every transaction that is completed using bitcoin costs zero. This is in contrast with credit and debit cards, which typically costs between 2% and 5% of the transaction as the fee. Bitcoin, therefore, opens up the opportunity to offer discounts to your customers without hurting your revenues, which is important during this season.
It always disappoints to make sales and then turn back to defend them through a time-consuming dispute resolution mechanism. Bitcoin offers you the opportunity to make sales and not worry about possible cases of customers disowning them. Bitcoin also makes it possible to transact in the absence of trust. In this case, smart contracts built on the blockchain protect both parties to a transaction from scams.