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The Impact of Digital Currency Payments on Small Businesses

kokou adzo



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In recent years, cryptocurrency and digital payments have made rapid inroads into the lives of ordinary individuals, especially traditional investors in forex, online merchants, E-Commerce businesses, Shopify stores, and a plethora of small to midsize enterprises. In fact, they are finding it easy to make and accept payments with cryptocurrency, especially Bitcoin (BTC), as it is fast, easy, secure and cost-effective than any other form of payments or currencies. In this article, we’re going to shed light on how crypto payments are impacting small business growth in a big way. Let’s understand the benefits in a nutshell.

  • Reduced Transaction Fees
  • Lightning Fast Transactions
  • Lesser Transaction Frauds
  • Improved Customer Base
  • Brand Recognition
  • Access to Global Markets, and many more.

As the cryptocurrency trade is steadily evolving, significantly expanding and continuously transforming for good, it definitely makes sense to accept payments in the form of digital currencies. Whether you’re buying or selling, cryptocurrencies can be easily converted into fiat currencies of your choice, as per the corresponding market value. And, it is the small traders, shops, stores and businesses that are reaping rich dividends, by accepting crypto payments in the form of Bitcoin (BTC) or Ethereum (ETH). Here are the top 5 ways how digital currency payment is impacting small business growth.

1. Customer Base Expansion – As there are millions of individuals worldwide who are trading in cryptocurrencies like BTC, DOGE, ETH, LTE, SOL, etc. the ultimate beneficiaries are the small stores and eCommerce businesses who are getting increased customers and visitors that prefer making payments with digital currencies, instead of fiat currencies. In this way, new customers are added, simply by accepting such forms of digital payments. As a matter of fact, the new generation of customers are more comfortable paying with cryptocurrencies, as they, as they’re quick in absorbing the latest technology. Instead of making payments with credit/debit cards, they prefer doing it with crypto or digital money.

2.Doing Away with Middlemen – As all cryptocurrency transactions are taking place between the customer and business entity, there are NO intermediaries involved that charge a commission fee from the said transaction. In this way, small businesses are able to increase their profit margins, which was previously not possible due to the involvement of middlemen like banks, brokerage firms or any other financial institution. Moreover, it makes chargebacks and refunds easier, eliminating the scope of frauds and errors.

3.Lower Transaction Fees – Since there’s NO involvement of middlemen in crypto payments and transactions, the fees that you pay are considerably reduced. All cryptocurrency payments of any volume have a transaction fee of less than 1%, which is significantly less, when compared to payments done by credit cards that is to the tune of up to 4% or even more.

4.Improved Sales Figures – As there’s NO ‘foreign’ transaction fees and almost NIL lag time between payments, a majority of new customers prefer shopping from your store or shop, thus increasing your sales and revenue by two folds. This is why a lot of small business enterprises are accepting crypto payments, apart from traditional currencies, credit cards and other digital payments.

5.Enhanced Customer Experience & Convenience – By accepting cryptocurrency payments for all goods bought and sold, your customers appreciate the convenience associated with a highly secure form of digital payment that has very few loopholes. Most importantly, with cryptocurrency, you can make payments 24 hours a day and 7 days a week, without having to wait for the market to open at a particular time.

How Crypto Payment Helps Enhance Brand Visibility?

When you’re accepting payments from customers in the form of currencies like Bitcoin, Ethereum, Dogecoin, Stablecoin (USDT) or Litecoin, you are in a way promoting your brand to a new group of audience that deals in cryptocurrencies, and those who prefer making small business crypto payment through such digital currencies. This is how new customers are added to your existing base, and your local or global brand gets an improved visibility among prospects.

In order to accept payment in cryptocurrencies, you need a digital wallet, which requires a digital signature to verify or validate every single transaction. Some of the most popular digital wallets are BitPay, Gemini, Coinbase, Robinhood, Binance.US, eToro, and some more. In fact, Google Pay, Apple Pay & PayPal have also started accepting crypto payments, as part of their digital wallets for getting a lion’s share of customers and users. FYI, a lot of crypto wallets are also providing debit cards to access your money, just like a regular bank does.

Impact on Cash Flow Management

The most important aspect of cryptocurrencies is that they overtly aid financial inclusion, as they do not need any kind of complex technological standards. Just an internet connection, and a digital device like a smartphone or laptop, and you’re good to go. Moreover, there are no government banks or financial institutions that can regulate the supply of cryptocurrencies, as its overall supply is clearly defined in the demand & supply protocol. Therefore, no federal authority can influence the supply of cash flow, which clearly restricts government power.

Impact on International Trade

Apart from financial inclusion as discussed earlier, crypto payments can lower costs for small businesses that make limited profits, due to less investment capital involved. As a majority of small to midsize enterprises are starting to accept Bitcoin and other cryptocurrencies like ETH, ADA, SOL, DOGE, etc. it is streamlining global payments and reducing currency conversion costs. This is positively benefitting global economy and cross-border trade.

Cryptocurrencies have also become an asset for investors, which is significantly influencing capital flows and investment patterns on an international scale. As some central banks are exploring the possibility of introducing CBDCs, it could well impact global exchange rates, monetary policies and worldwide financial stability.

As cryptocurrency is governed by Blockchain technology, a lot of industries are adopting this new technology to improve upon transaction transparency, cash flow, supply chain management and data security. On the contrary, the regulatory challenges in the cryptocurrency market can impact global trade, as some countries have happily embraced digital currencies, while some have imposed strict restrictions. In fact, some federal governments are working towards imposing a tax structure, which could influence business revenue and margins.

Lastly, innovations in blockchain technology are dramatically influencing the future of the global payment system, thereby risking or aiding conventional financial infrastructure and economies worldwide. This is how cryptocurrencies or digital currencies are having a cascading effect on the volume, growth and stability of international trade.


Kokou Adzo is the editor and author of He is passionate about business and tech, and brings you the latest Startup news and information. He graduated from university of Siena (Italy) and Rennes (France) in Communications and Political Science with a Master's Degree. He manages the editorial operations at

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