Are you a business owner considering adding cryptocurrency payments into your business model? Cryptocurrency is gaining popularity, with almost 30% of businesses accepting it. That number is growing daily. As with all payment options, consider these factors before accepting cryptocurrency payments.
There is not just one digital coin; there are thousands. When you accept cryptocurrency, you need to create an account with an OKX trading platform. Unfortunately, not all exchange platforms trade all digital coins. You must research the currencies that you plan to accept. Consider limiting the number of currencies you take, as you will need to be able to manage each one. Receiving more than one payment type draws more customers to your site.
Cryptocurrency is resistant to fraud due to the security built into the trading market itself. Your customers should have a secure digital wallet and password combination to initiate the transaction. In the rare instance where an account is hacked, a third party cannot reverse the charges.
When you accept digital currency, you become a global supplier. Many international businesses use cryptocurrency for their online purchases. This allows the customer to avoid high conversion fees, especially those charged by credit card companies.
Decrease Processing Fees
Credit card processing fees are notoriously high compared to cryptocurrency fees. Expect to pay a small flat rate transaction fee plus a percentage of each sale to the credit card company. If you accept cryptocurrency directly, you can reduce those transaction fees to zero. Even if you use a digital payment processor, the average rate is 1%.
Savvy customers are beginning to demand the companies they do business with accept digital currency. By adding this option into your business model, you attract a new type of customer to your business. This customer is typically concerned about protecting their financial data.
Consider Tax Implications
You will need to consult with a cryptocurrency CPA to discuss the tax implications of accepting digital currency. If you plan to keep some of your earned income in the form of cryptocurrency, this can add another layer of tax strategies to your company. You will also need to work with your point-of-sale system to ensure that it has an option to use digital currency. You may need to convert to a new POS or purchase an add-on to accommodate these transactions.
There are a few reasons you may not be ready to implement digital currency payments at this time. The learning curve for employees processing transactions is lengthy. Upgrading your network to include security to protect your workstation from being hacked can be costly. Brick-and-mortar store owners can invest in or contract with a digital currency ATM. This ATM allows customers to access their digital exchange, converting their cryptocurrency to cash to make their purchases. They can also allow customers to make digital currency trades at your site.
Building a customer-friendly business model is important to your company’s strategy. When you add payment options to your plan, you can bring more customers to your company. Cryptocurrency can be just the addition you need to move your business to the next level.