Cryptocurrency has more than 300 million users worldwide. Not only Bitcoin is popular, but also other options like Litecoin, Ethereum, etc. Using cryptocurrencies is convenient and profitable, especially when it comes to international payments. Therefore, companies operating in the field of e-commerce add the possibility of making payments in the form of cryptocurrency. However, the decision to accept crypto payments has pros and cons, so it is worth considering this issue from various angles.
Advantages of accepting crypto payments
When a business sets the goal of entering global markets, accepting cryptocurrency payments is one of the fundamental conditions. It is much easier for users from abroad to make international transactions in this form. It’s faster and cheaper than using bank accounts. There are other advantages as well.
Any system imposes fees for making a money transfer. It happens even when using e-wallets. However, the fees for cryptocurrency transfers are tiny, so each party saves significantly thanks to this. It is also essential that you do not need to convert crypto money, so the calculations become even more profitable.
Blockchains store customer data instead of centralized databases. It is more resistant to hacker attacks. It also prevents fraud and other security problems.
Benefits for marketing
By incorporating crypto into payment methods, businesses are expanding their audiences. In this way, the company also covers those customers for whom other payment options are not suitable for certain reasons.
Disadvantages of crypto payments
Along with the benefits, crypto payments have some cons. Among them, the irreversibility of transactions and the high volatility of cryptocurrency are noted. In addition, not all consumers are used to cryptocurrency payments. Despite the widespread use of this payment method, many users avoid it due to a lack of understanding of the basic rules for making such payments.
Cryptocurrencies are becoming as common as fiat money. So, it makes sense to allow customers to pay for services or goods in this way. At the same time, businesses should protect themselves from exchange rate fluctuations. For this, each company invents its solutions: automatic conversion of cryptocurrency into fiat money or inclusion of a potential difference in the price of a product or service. You can also initially give preference to cryptos with the lowest volatility. Thus, there are various methods to eliminate the disadvantages of crypto payments, and the advantages are too significant to refuse them.