Pros and Cons of accepting cryptocurrency for your business

With the rising appeal of multi-choice payments in the eCommerce and retail market, businesses need to rethink their approach in regards to providing customers with versatile purchase options. Whether you aim to integrate cryptocurrency payments into your business shortly or already feature several prominent currencies as payment methods in your company, the appeal of implementing digital currencies is certainly there.

According to SoftwareFindr, 4.68% of millennials have invested in cryptocurrency acquisition of some kind, while 78.95% of cryptocurrency owners have acquired their coins through peer-to-peer purchases. However, just like with any form of technology or financial feature, cryptocurrency’s implementation will inevitably lead to different pros and cons for your business. With that in mind, let’s dive into the advantages and disadvantages of featuring cryptocurrency payment options for your business going forward.

Pros 1: User-friendly versatility

Giving your customers and clients as many payment options as possible will ensure that they are comfortable with using your eCommerce store or website. According to Medium, there are around 24 million Bitcoin users around the globe and around 31 million Ethereum users accordingly.

Cons 1: Currency Fluctuation

As with all types of payment options and currencies, cryptocurrencies also fluctuate in value over time. However, their fluctuations are somewhat sporadic due to the nature of cryptocurrency exchange and additional coin generation. In addition to professional crypto exchange software, you can refer to localization tools such as The Word Point for any international cryptocurrency exchange needs going forward. Blockchain technologies are used to track each coin regardless of its currency, point of origin, or current owner.

Pro 2: Minimize chargeback fraud

Chargeback fraud is an important subject of conversation when it comes to currencies available for use on your business’ website. In short, this process involves illegitimate chargeback requests from users who ordered goods or services from your business, resulting in your loss of revenue and those goods as a result.

Con 2: Potential territorial regulations

Transactional fees, taxes, and other territory-based price regulations may prove bothersome when it comes to cryptocurrency implementation. Simply put, cryptocurrencies are entirely digital and, for many countries, miles away from proper regulation.

Pro 3: Low transaction fees

Many payment services such as Payoneer and PayPal will place additional costs on your transfer requests and incoming payments as a result of using their services. However, cryptocurrency transaction fees are minuscule in comparison, leaving a lot more revenue in your hands at the end of the day.

Con 3: It takes time to set up

Setting up your cryptocurrency payment options may require additional time and set up in comparison to other transaction channels. One of the options you can go for is to create your business’s own crypto wallet and receive payments directly through it. Similarly, eCommerce websites may require additional plugins for a cryptocurrency exchange to take place in a safe and practical environment.

We hope you have found this article informative and interesting. For more information or queries contact us to know more about this technology.

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