Maitreyee Somvanshi

July 14, 2023

Why Should You Let Your Customers Pay in Digital Currency?

Digital currency, such as cryptocurrencies, has gained significant traction in recent years, revolutionizing the way we think about money and transactions. As businesses adapt to changing consumer preferences, it becomes essential to explore the benefits of accepting digital currency as a payment method. Providing your customers with an option to pay using digital currency has multiple significant benefits ranging from lower transaction costs, increased operational efficiency to standing out among your competitors.

Reasons to board the ‘Pay with Crypto’ bus

1. Earn more on every dollar

One of the key benefits of digital currency payments is the potential for lower transaction costs  which can help in businesses saving up to 90% in transaction fees compared to traditional payment methods, according to the European Central Bank. This significant cost reduction can have a positive impact on a company’s income, especially for high-volume businesses or those engaged in cross-border transactions as these businesses incur high transaction costs owing to complex cross border rules for trade. Coin Gate’s analysis also revealed that businesses can save an average of 1-5% on transaction fees compared to traditional methods.

2. Reduce settlement times from days/weeks to hours

Additionally, digital currencies facilitate faster settlement times, enabling immediate transaction confirmations that can simplify and optimise business operations and help with the problems of deferred payments, constant following up etc. that businesses face with traditional payment methods. Additionally, digital currencies ensure faster settlement times, with the average confirmation time for a Bitcoin transaction being around 10 minutes.

3. Expand your reach to a $1 trillion digital asset market participants

Accepting digital currency helps in reaching a wider global customer base in a much easier way. By moving away from the need for foreign exchange conversions or dealing with complex international banking systems, businesses can engage with customers worldwide efficiently and effortlessly. According to Statista, the number of global cryptocurrency users exceeded 200 million in Q1 2021, which is a substantial market size that businesses can tap into by accepting digital currency payments. This expanded reach can lead to increased sales and opportunities for growth. Not just that, consumers using digital currencies for payments are generous with the markups thet are willing to pay. A crypto transaction can have markups upto 300% from the original price, and consumers won’t mind!

4. Safety inbuilt, without chargebacks

Payments through digital currencies are also more secure and easily trackable. They are based on the blockchain technology, which offers robust security features. Cryptographic encryption and distributed ledger systems provide a high level of security, reducing the risk of fraud and counterfeiting that are often an issue with traditional payment. Also, the irreversible nature of digital currency transactions significantly reduces chargeback fraud, saving businesses billions of dollars annually while also helping in maintaining accurate records of transactions.

5. Bright Future

Accepting and encouraging digital currency payments demonstrates a forward-thinking approach that can attract tech-savvy customers. A survey conducted by PwC found that 40% of consumers surveyed would be willing to switch to a digital currency payment method if offered by their favourite merchants. By providing a broader range of payment options, businesses can enhance customer satisfaction, loyalty, and differentiate themselves from competitors.

Embracing digital currency payments holds significant advantages for businesses. Lower transaction costs, faster settlements, and global accessibility contribute to improved operational efficiency and expanded market reach. Enhanced security measures reduce fraud risks, and the adoption of digital currencies signals a customer-centric approach that fosters engagement and loyalty. Furthermore, businesses can explore alternative funding avenues and leverage emerging decentralized finance opportunities through digital currencies.

How to start accepting cryptocurrencies?

Binamite offers different options for you to get started in minutes, without losing money on the volatile prices or high transactions costs. We have put together an efficient channel of low-cost, and lightening fast checkout options that is easily withdrawable into your local bank currencies.

We help you integrate a ‘Pay with Crypto’ button for your online products and services, or let you pass invoices with payment links for checkout. Developer or no developer options available. Reach out to us for a demo, and we’ll get you integrated in no time!