Integrating cryptocurrency payments is a hot topic for many, as some businesses are fence-sitting and waiting to see if crypto is here to stay. It is true that, somehow, virtual currency has yet to prove its definitive staying power.
However, it is also true that billions of dollars change hands in the form of these coins and that hundreds of millionaires were created overnight. Even while payment processors are playing it safe, we are still seeing a spike of people and consumers choosing to do business with crypto.
Let us look at crypto payments, and what benefits you stand to gain as a business should you adopt it as an alternative method of payment.
History matters
For a person living today, it is almost inconceivable to imagine a society without credit and/or debit cards. But when the technology was first adopted, very few stores actually took “plastic money”. But as the technology proved its worth, it is now universally adopted in all corners of the globe.
A decade after that, I distinctly remember seeing a documentary show on the Discovery channel, where the host’s mind was blown after a few select stores were experimenting with paying via your phone. It was presented and treated as cutting-edge tech, and maybe in a few decades, more people will adopt phone payments.
Nowadays, after the tech proved its worth, paying with your phone has become so popular, that it has phased out standard plastic card transactions.
The point of this short walk down memory lane is to underline that there was a time when set-in-stone technologies had their baby steps. And not everybody adopted them, preferring to watch them play out a bit.
Crypto seems to be going through the same growing pains, as half of the planet is convinced it is the way of the future, while the other half sees it as an internet trend that is sure to die.
But as a business, you have to ask yourself: “Can I afford to neglect and distance myself from half of the market?”.
Some of the advantages of adopting crypto
We ended the previous point with the argument of popularity and trying not to alienate a huge portion of the market by not integrating crypto. But of course, just because something is popular does not make it correct.
So, let’s discuss some other advantages related to crypto payments.
Currency that is not issued by the government
Governments tend to be severely short-sighted. They mismanage budgets and then print money quickly to cover the holes that they made. This works in the immediate future, but it destroys the value of currency in the long run. The current global inflation crisis was created by this exact behavior.
Without getting into much technical detail, it is impossible to over-print cryptocurrency and cause inflation. So, in a way, it is extremely inflation-proof.
Its value can still go down, but that is because of other factors, such as the exchange market.
It is not advisable to have all your money in virtual coins, but you should at least have some. That is the golden rule of thriving on the market: diversify as much as possible.
Gaining easy access to international markets
The world does not have an internal currency. The dollar got close, but now, more and more countries have lost faith in the dollar, and its power is dropping.
Even though we don’t have this international currency, there are businesses that work with people from across the planet. For example, crypto casinos in US can have patrons from across the globe, and it can be hard for those people to buy dollars. Exchanging currency can be a hassle, and exchange rates can cause hesitance.
Meanwhile, crypto standards are not set by a single country, so there is no exchange needed. It’s the closest thing we have currently to an internal currency.
In addition, by using crypto, both businesses and patrons can avoid certain pesky transaction fees.
Anonymity and privacy
“If you don’t have anything to hide, then you should not worry about the lack of privacy”.
This statement is extremely wrong. In fact, as long as you are not doing anything illegal, your right to privacy is part of your dignity as a human.
Unfortunately, nowadays, businesses, governments, internet providers, and giant corporations are spying on every person on the globe. This is mostly for advertising purposes, to know how to target marketing and distribution.
Still, if you get the “ick” because you know that you are being watched and tracked, then you should definitely switch to transactions in crypto. As a business, you will still have to declare everything to the government, but your customers may appreciate that their transactions are kept secure and anonymous. Blockchain integration is the way of the future in a surveillance-based society.
Security protocols such as the SSL/TLS encryption will guarantee more privacy.
Conversion to Fiat Currency
As a business, you have to make a decision regarding the currency in which you are being paid. Stablecoins in business can be immediately converted to fiat money, or they can stay as Bitcoin, Monero, Dogecoin, or whatever form they take.
Of course, there is no right answer, only compromises. In the first scenario, if you keep the sum in crypto, you are safe from the overprinting and inflation that the government causes. Yet, the downside is that the crypto market can also crash, rapidly devaluing your earnings.
Alternatively, you can see a rapid surge in value and become very rich very fast. It’s all about weighing risk and, if possible, diversifying your prospects. In finance, it is never good to have all your eggs in one basket.
Make measured decisions
It’s easy to see people who ride trends and get ridiculously wealthy. However, we don’t notice that 9 out of 10 businesses and business strategies fail. We only note the winners.
No matter how confident you are in crypto, you should not rush headlong into its complete integration and adoption.
Setting up crypto payments as an alternative to your already existing structure is the logical first step. Then, you can watch carefully how your specific target demographic reacts.
Remember that you can control certain behaviors by offering discounts, playing with your web pages, or advertising certain features. Then, if successful, you can invest fully into crypto POS systems and make it a primary payment channel.
Gambling and gaming
The gambling and gaming industry tends to be more tech-savvy than the rest of the population, so it was to be expected that they were early adopters. Adopting alternative payments provided a huge success.
These sectors often require privacy, they have an international audience, and most transactions are done online. It was a match made in heaven.
Conclusion
Cryptocurrency, for sure, is an internet trend. People distrust fiat currency, so the promise of an international, stable, inflation-proof, fraud-proof coin is definitely tempting. This is the status that gold had in the past.
However, while it had a promising start, we are not at the stage when crypto is fully adopted across the globe.
What can be known for sure is that it has achieved a level of popularity where ignoring it would actively handicap your business.
No matter if you want to go all-in or test the water with your toe, any business owner should at least consider adopting crypto as an alternative payment method.
