Finding new revenue streams is a consistent goal for small businesses and startups – without novel ideas and experimentation, some businesses are doomed to fail. While there is plenty of room for conventional day-to-day business management and operations, newer entities often need the ability to broaden their horizons and tap into consumer markets that might otherwise be difficult to reach.
One such example of an audience is the cryptocurrency consumer base. With Bitcoin in particular now being a major digital currency, businesses that accept this globally-recognized currency can generate additional sales and expand their overall profit margins.
To look deeper into this phenomenon, let’s examine how – and why – small businesses absolutely can and should embrace Bitcoin.
Lower Transaction Fees
With many merchant accounts and conventional payment solutions, banks are involved. These institutions often charge fees in excess of 3%, which take a significant amount of profit out of the hands of small businesses and startups.
With Bitcoin acceptance, these fees can be dramatically reduced, or even eliminated. The vast majority of Bitcoin-related transactions have fees ranging from zero to one percent – an added form of relief for small businesses and startups already operating on thin margins.
This alone should be an appealing reason to consider accepting Bitcoin through internet-based or in-person transactions. Click here to learn more about Bitcoin transaction fees.
Bitcoin Wallets and Flexible Storage Options
The number of methods for storing Bitcoins received as payment are numerous, which gives small businesses and startups a wide degree of flexibility. When choosing a Bitcoin wallet, there are five main options to consider: desktop, web, mobile, hardware and paper. Generally speaking, paper Bitcoin wallets can only be used to store money in a static setting; they cannot be used easily to transfer funds from customers in and out of their accounts (and into yours).
Regardless, a Bitcoin wallet still allows for easy storage and interaction when necessary in most cases. Many small businesses will use a mobile or web Bitcoin wallet to facilitate transactions in in-person settings. For online sales, simply providing a Bitcoin address where payment can be sent to a wallet is all that is required.
Companies such as Paxful offer simple and secure Bitcoin wallet options that allow businesses to buy, sell and store Bitcoin (as well as transfer funds via transactions in general). With no commission fees, this Bitcoin wallet for free is one example of a great solution for Bitcoin enthusiasts from all walks of life.
No Concerns About Chargebacks and Disputes
Small businesses and startups – and all businesses, for that matter – face a variety of challenges. The presence of chargebacks and payment disputes are one of the biggest obstacles to profitability that can occur. Thankfully, Bitcoin offers one simple advantage to most conventional forms of digital payment: chargebacks and disputes are no longer a reality.
While individual customers can and may ask for refunds due to dissatisfaction, there are no concerns over fraudulent activity leading to an exchange of products that will later cost you money. Once a Bitcoin transaction has occurred, it is final – there is no way to reverse the transaction unless the recipient of the Bitcoins decides to do so.
The Opportunity to Earn Additional Profit
As has already been alluded to, Bitcoin offers businesses the ability to reach new audiences that are constantly seeking ways to purchase products and services through their digital currency. By offering Bitcoin acceptance, your startup or small business can market itself as a crypto-friendly entity. This can be highly effective within niche communities in general, encouraging them to purchase items from you instead of the competition.
Some businesses that accept Bitcoin pass on the savings from traditional bank fees to their consumers, thereby providing a lower overall cost that attracts additional customers from their competition. Ultimately, this opportunity to earn an additional profit – combined with the savings on the aforementioned fees – makes accepting Bitcoin a no-brainer for those seeking to maximize profit margins.
Some businesses even use a portion of their Bitcoin profits to invest long-term in the Bitcoin market, earning additional profit without the need for any additional sales.
Accept Bitcoin Payments Digitally and In-Person
Increasingly, many point-of-service providers are offering touchscreen-based Bitcoin payment solutions connected to a Bitcoin wallet that allows customers to check-out seamlessly in-person. These systems work fairly simply; a business rings up the cost of products or services, and the point-of-sale system generates a QR code. This code can then be scanned by the customer to seamlessly transfer Bitcoins from their account and into yours.
Additionally, accepting Bitcoins in an online setting is even easier. Without the need for seemingly complex physical equipment, any startup or business can begin accepting Bitcoin almost immediately. All that is required is a Bitcoin-friendly checkout process and a Bitcoin wallet through which the sales will be routed.
The sheer flexibility and ease of accepting Bitcoin in any situation make it easy for startups to begin accepting it, and easy for customers to pay with it.
The how and why behind businesses accepting Bitcoin is nuanced, but multifaceted in terms of its benefits. Whether the goal is to expand your target audience, earn more profit, save on fees, or have more flexibility and diversity in your cash-on-hand, there are numerous reasons to begin accepting Bitcoin today.
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