When cryptocurrencies such as Bitcoin hit the mainstream several years ago, they, along with blockchain technology, immediately created a ripple of interest when it came to small businesses. Small businesses are always looking for ways to up their game, and while they’re often cautious; cryptocurrency and blockchain tech provides a raft of fantastic advantages. Thus making it extremely worthwhile to explore the world of cryptocurrency.
Credibility Gains
Immediately, a small business will become more recognisable as a brand, just for adopting cryptocurrencies in some way, shape or form. With the proportion of companies who have taken these steps being small in comparison to those who haven’t, doing so will allow a small business to stand out from the crowd.
The small business will also benefit from the crypto scene too, as the people within it appreciate companies who accept cryptos and blockchain over those who don’t. A new raft of customers will be attracted, helping the business to appeal to a broader market, with the company also being forward-thinking, innovative and daring. So there is no doubt that businesses could see a spike in interest and revenue with a whole new audience armed with a state of the art Bitcoin wallet from Luno or any other of the legitimate tech firms offering crypto wallet services.
Lower Costs
Keeping costs down in a small business is vital, especially when the revenue isn’t necessarily high. With cryptocurrencies allowing transactions to be completed cross-border with no processing fees required, it immediately allows a small business to save money they may have previously had to spend using other payment providers. Therefore, this is going to be beneficial in the long run and could enable a small business to grow too.
Risk Management
One of the most significant drawbacks when it comes to traditional payment methods is fraud, especially in the online world. It’s something many small businesses and their customers are concerned about, but as cryptocurrencies provide the highest level of security around. The peace of mind which has previously been lacking is back, giving everyone more confidence when it comes to making and receiving payments.
Chargebacks have also been a critical concern for small businesses, as they can mess up the accounts for example. Chargebacks occur when transactions are processing, but the person then disputes the payment or attempts to cancel for another reason, resulting in a chargeback occurring. As cryptocurrencies such as Bitcoin use blockchain, which is a record of transactions which can’t be changed, all purchases are final. So, there will be no more chargebacks, allowing a small business to stay on top of everything.
We mentioned the importance of online security above, and now it’s the turn of online privacy, something which has been in the news recently. A person’s information is theirs and theirs only, and if it falls into the wrong hands, it can have disastrous consequences. Information at risk through hacking, data leaks and during transactions, and this can lead to things such as identity theft, fraud and the ability to obtain credit.
Thankfully, small businesses can prevent this from happening by incorporating cryptocurrencies, as people can stay anonymous throughout. Therefore, no personal or financial information which could be misused will be at risk of falling into the wrong hands again, in what is another crucial benefit provided by cryptos for small businesses.
