Digital currencies are definitely changing the way a lot of transactions are being handled. And if we look at the numbers this trend seems to be on the rise, the market cap of all cryptocurrencies around September 2018 was $209.2 Billion. This is not a small amount and it just keeps on rising. So, deciding to ignore digital currencies when it comes to your business is not a smart decision. There are a lot of ways that cryptocurrencies are affecting business now, and a lot more ways that they will do the same in the future.
What are the prerequisites for your business?
In order to use cryptocurrencies, consumers and sellers need to open a cryptocurrency wallet account. It has the same purpose as a bank account but just specifically for cryptocurrency transactions. What is important for your business is the fact that these wallets typically have the option of automatically converting incoming cryptocurrency to cash. This means that your business can “cash out” any cryptocurrency sale into any currency, local or foreign. But you also have the option to store cryptocurrencies in the wallet until you need to use it. The source of your client’s cryptocurrency can vary, around 78.95% of all cryptocurrency owners have bought their digital currencies, but the rest decided to dedicate themselves to secure crypto mining options in order to replenish their savings.
It will allow for more secure payment options
This is especially true for developing countries which have unstable currencies. By switching to digital currencies that are able to make safer transactions without losing funds in the process. This is one of the major impacts that digital currencies have on businesses, especially in developing countries whose economic situation is still unstable. Considering the fact that there is no central entity or authority that manages the creation and use of cryptocurrencies and that there is a fixed amount of coins that can ever be mined, it is much safer to plan out transactions relying on a fixed value of the currency you are using.
Remember, there are no processing fees
As you know, almost all forms of digital payments have processing fees. This directly affects the price that small businesses set for their products and services. So, as an SMB you are typically charged 2% – 3% by your credit card processing company, and it is the same with platforms like PayPal and Stripe. But if you opt for allowing the option of cryptocurrency payments there are no such fees. This means that you could lower your prices a bit without it affecting your overall profit. This can make you more competitive on the market and help attract additional customers in the process.
These are just some of the ways digital currencies are affecting businesses worldwide. And if you take into consideration that multinational companies such as Amazon, Microsoft, and other major brands accept Bitcoin, the most widely used cryptocurrency the message is clear, there is a necessity that businesses worldwide make the shift and start creating an infrastructure within their financial department so that it can take on crypto payments. That way the new generation of potential customers will be attracted and that will have a definite positive effect on the overall ROI of the company. Embracing the future is essential for any business that wants to succeed and thrive in this modern digital market. It is just a matter of time when such payments options that are not connected to any local currency or country will take over the global market enabling faster and safer transactions worldwide.