Everything Is Going Digital!!! The growth rate of cryptocurrency and the adoption of blockchain technology by businesses may be the final nail in the coffin for paper transactions. Most businesses and banks are already moving toward digital only, and as accessibility and popularity for digital currency grows, it is likely to be the future.
Bitcoin is one notable cryptocurrency. However, other currencies are on the rise, such as Ethereum, Litecoin, and DASH, which are all Bitcoin competitors.
This indicates that digital currency is on the rise and will not slow down anytime soon. The very nature of the blockchain makes peer-to-peer digital transactions possible without a financial institution middleman.
Cost Effective Business Transactions
Businesses lose a lot of profit due to middleman transaction fees. The average business pays fees for credit card acceptance directly to the credit card company, on top of fees for using a third-party payment processor. This can add up fast.
However, the blockchain technology that supports cryptocurrency can cut out the middleman, thus increasing your profits.
According to the Federal Reserve, PIN-authenticated transaction costs can be as high as $0.25. The “average interchange fee per exempt transaction” is between $0.26 and $0.51 per transaction.
Adopting cryptocurrency as a form of payment on your website means that you can avoid high transaction fees.
The decentralized nature of blockchain transactions can save you up to five percent per transaction. And with no middleman, you don’t need to wait days for transactions to process.
Real-Time Digital Currency Exchange
Waiting for your funds to process can be frustrating, especially if your operating costs are high. By accepting cryptocurrency on your website, you can avoid long transaction times. Typically, digital currency transactions occur in real time, or within minutes.
Digital currency transaction times do depend on the type of currency you choose to accept. For instance, Bitcoin Cash is slightly faster than Bitcoin transaction times. Ripple takes up to five seconds, while Litecoin processing takes two to five minutes.
Businesses that accept digital currency can get instant gratification on every customer purchase. Each transaction is also more secured due to the blockchain verification process.
More Secured Transactions with No Chargebacks
For each and every transaction, a block is created, verified, secured, and enforced. This protects businesses from chargebacks, because customers need to show proof of funds before the transaction is completed. This is far superior to traditional transaction processing currently in place.
“The records on a blockchain are secured through cryptography. Network participants have their own private keys that are assigned to the transactions they make and act as a personal digital signature. If a record is altered, the signature will become invalid and the peer network will know right away that something has happened.”
By accepting cryptocurrency, you are securing your business’ data and the data of your customers.
Enter the Global Marketplace
Cryptocurrency adoption makes international transactions easy by minimizing the cost and time involved in processing them.
You can accept payments internationally with cost-effective fees and little to no processing wait times. This makes your business a go-to for many digital currency holders abroad.
By accepting cryptocurrency, you are also able to make payments to international vendors easily. This can cut international purchase costs for your products, impacting your bottom line in a very positive way.
From gaming to medical marijuana, there are a number of industries already benefiting from digital currency adoption. It is even profitable to have a cryptocurrency portfolio to create a passive income for your small business.
If your business is in any of these industries, it is essential to your future success to implement a cryptocurrency payment option on your website.
MEWS is a full service web development Internet marketing company and technology integrator founded in 2003, by leading industry consultants with previous technology experience.MEWS is an Internet services and solutions company with interests in website development – Mobile applications– domain name registrations - web hosting.