Bitcoins have been one of the hottest news topics of the year so far. And yet, most people still don’t even know what it is. Bitcoin, in simple terms, is a cryptocurrency or digital currency. No coins or paper notes of the currency exist in real life. Nor is it regulated by a Central Bank, like all the world’s accepted currencies are. These are the reasons why Bitcoins have become so popular among online buyers and sellers. People can trade using the currency without the usual restrictions of regular currency. Bitcoin also grants anonymity for those who wish it.
Bitcoins have been in existence for only 8 years. No one even knows the real identity of who created Bitcoin. Still, it is the most popular digital currency in the world. If online buyers are showing preferences for Bitcoins, should your small business offer Bitcoins as a payment option? Some businesses, both small and large, like Virgin Galactic, already do. Read below for several potential benefits of offering Bitcoins as a payment option for your company’s online buyers:
1. Offer Customers More Options
Offering Bitcoins could be a passive way of appealing to customers, for nothing if not for offering yet another payment option. Customers flock to e-stores that offer a high number of payment options. Additionally, the small business may be able to attract customers who want to make purchases but really want to remain anonymous. Offering Bitcoins could thus provide your company with a significant advantage over the competition, according to business consultants Global Resources.
2. Enjoy Low Transaction Charges for International Trades
One of the biggest advantages of Bitcoins is low fees for international transactions. Bitcoin transactions charges are amazingly low, mainly because there is no government or company controlling the currency. Compare this to typical credit card transaction fees for e-commerce companies, which could be as much as 25 cents for each swipe of the card. In addition, credit card companies also charge over 2 percent of the total the customer pays. None of this applies to Bitcoin transactions.
3. Benefit from Cash-Like Protection
Cash can be a hassle to carry, but cash transactions offer enhanced protections because no other party can reverse a cash transaction once it is down. Bitcoin offers the same protection for sellers. Unlike with credit or debit cards, merchants don’t have to worry about bouncing payments or fraudulent charges. The transaction is as safe as exchanging cash.
4. Expand Businesses to Other Countries
Accepting Bitcoin payments is a great way to expand business to international customers without accepting numerous foreign currencies. With Bitcoins, companies don’t have to pay international transaction fees or taxes. It makes it much easier for businesses to sell to customers in other countries. It’s also convenient for the customer as there are no currency conversion headaches.
Offering Bitcoins does bring immense benefits for small businesses, as explained above. However, companies should also be wary of the volatility of this particular digital currency. Prices can drastically fluctuate within minutes. Bitcoin value is unpredictable, and the currency has also come under hacking attacks in recent times. Small businesses can still accept Bitcoins, but do not disregard these concerns in any case.