In recent times, there have been tons of opportunities for business owners who transact with Bitcoin and other cryptocurrencies. Embracing Bitcoin payment may prove more convenient for many top merchants who have consistently faced rejection from popular payment processors.
This article highlights the advantages of accepting crypto payments and how to set up a modern business. We will also show you how cryptocurrency payment methods differ from traditional payment systems like bank cards.
Why Should Your Business Adopt Bitcoin Payment This Year?
Some of the most compelling reasons to consider adopting Bitcoin payment include the following:
To reduce credit card charges
On a typical day, a business owner spends $300 on every $10,000 transaction. Credit card processing fees, ranging from 3-4%, incur this cost. They have conceived a way to cut those costs by embracing cryptocurrencies with little or no fees.
Widening the customer bracket
Having several payment options increases your chances of opening your business to more customers. With Bitcoin, you can transact with more customers without paying high processing fees.
There is no risk of chargebacks or payment disputes
All payments in Bitcoin are final because there is hardly any form of “network problem.” Also, there is virtually no chargeback fee—a relief to business people, especially as chargeback fees can rise as high as 25% in some cases.
These reasons have led more business enterprises to adopt Bitcoin usage as an alternative to traditional payment systems.
Advantages and Disadvantages of Bitcoin Payment
Like other payment methods, using BTC as a means of payment has many advantages and disadvantages.
Advantages of Using Bitcoin as a Payment Method
Businesses enjoy the following benefits when they engage Bitcoin as payment tender:
- There are few or no transaction fees;
- Fast payment processing time;
- There is no chance of chargebacks;
- It can serve as a means of investment because it can increase in value.
With these benefits, which are good for business growth, it is little wonder that Bitcoin is continuously being adopted as a means of payment.
Disadvantages of Using Bitcoin In Business Transactions
Below are some reasons that make businesses reluctant to embrace the Bitcoin payment option:
- Lack of popularity outside the web3 ecosystem;
- No protection for cases of fraud;
- No customer support unit for BTC adopters;
- It calls for users to keep up with the ever-evolving crypto regulations.
These shortcomings, or factors, have stunted the adoption rate of BTC among merchants.
Bitcoin and Crypto Payment Providers In Germany
For German merchants looking to send or receive Bitcoin payments, here are some platforms where you can convert your cash to cryptocurrency, and vice versa.
Coinbase
On this platform, customers can have their coins automatically converted to cash. Every time they visit the platform, they receive the best available exchange rate that is valid until they exit the platform. Coinbase charges a fee of 1% of the transaction amount.
BitPay
Like Coinbase, BitPay locks in a client on the prevailing exchange rate whenever they come for a conversion. They also charge a processing fee of 1% for every transaction made.
PayPal
This platform is popular for merchants and freelancers, as they can easily convert their cryptocurrencies into dollars using the current exchange rate. This platform provides many payment options for customers while still allowing merchants and freelancers the flexibility of transacting using fiat currencies.
These platforms have gone a long way in dispelling the fears of many merchants and regular crypto users alike, as there was a fear of being trapped with cryptocurrencies without any way to transact with them in the real world.
How to Use Bitcoin for Your Business In 4 Steps
Accepting payment via BTC will vary from person to person based on the platform they are transacting with. However, here are the steps to take to start accepting payments with BTC:
- Understand the existing regulations of Bitcoin in your region
You have to try to understand the rules guiding the use of Bitcoin in your locality and its tax implications. Also, try to devise ways to record transactions done using crypto.
- Set up a crypto wallet or Decentralized exchange
Now, you may want to set up a wallet to store the cryptocurrency payments made to you. Using exchanges widens your options, as you can choose to keep the money, i.e., store it or convert it to cash when the need arises.
- Convert Bitcoin To Cash To Bypass Volatility
As you know, the price of Bitcoin and many other cryptocurrencies is not stable. To mitigate the effects of the coin’s volatility, converting it to a stable currency such as USDT or cash is always advised.
- Integrate Bitcoin Use into Business Record Book
Make sure to record transactions using Bitcoin as a medium of exchange on the same platform you use for all your business transactions to improve record-keeping in your company.
Using Bitcoin as a means of transaction expands your existing payment options and broadens your customers’ choices. With adequate knowledge about the crypto regulations in your area, you can smoothly integrate cryptocurrencies into your business life with their characteristic low fees and high speed.
