Advantages of Using Crypto Payments in Business10 min read

Advantages of Using Crypto Payments in Business10 min read

As adoption of cryptocurrencies and blockchain technology continues to grow worldwide, more and more businesses are exploring the option to accept crypto payments. 

While there is still risk involved due to the volatility of crypto markets, taking crypto as a payment option can provide some major advantages for companies. 

Let’s take a look at why accepting crypto is becoming more popular among businesses and the opportunities it presents.

How Do You Make Money by Taking Crypto Payments in Your Business?

One of the major draws of accepting crypto payments is access to a whole new customer base. As the younger generations that grew up with technology and cryptocurrency become more financially independent, many of them prefer to spend their crypto instead of cashing out. 

By welcoming crypto as a payment method, businesses can tap into this rapidly growing demographic.

There are also opportunities for increased sales. Some studies have shown that customers are willing to spend more when paying with crypto than when using other payment methods. 

This is likely because it feels less real to spend crypto that was purchased long ago when the value was lower. Whatever the reasoning, increased cart sizes can directly boost revenue for businesses.

Another potential money-making advantage is reduced processing fees compared to credit cards. While crypto transactions still involve some conversion fees, they are generally lower than the 2-4% that credit card companies charge businesses. 

Even a 1% savings on each transaction can really add up over time. As adoption increases, these fees may fall even further.

What are the Most Popular Industries That Accept Crypto Payments?

Some of the earliest industries to start widely accepting cryptocurrency include travel, electronics, and luxury goods. 

As crypto payments have become more mainstream, many other sectors have also joined in. Here are a few of the most popular at this point:

• Online Retail: E-commerce giants like Overstock, Newegg, and Shopify actively promote their acceptance of crypto. Niche online retailers in various categories have also jumped on board.
• Gaming: Many online gambling sites and virtual game marketplaces let players deposit and withdraw using crypto. Some games even have features powered by blockchain.
• Food and Beverage: Major chains like Starbucks, Subway, and Burger King now accept Bitcoin via payment processors in some countries. Many smaller cafes and restaurants have also started welcoming crypto.
• Professional Services: Some accounting, law, and consulting firms now accept Bitcoin and other cryptocurrencies from clients as a form of digital payment.
• Real Estate: In hot crypto markets, luxury real estate listings may even promote crypto payment options directly. Other agencies work with payment processors for crypto property purchases.

Which Bank Account is Required to Receive Crypto Payments in Businesses?

For a business to integrate crypto payments, it needs a bank account that supports these types of transactions. 

Not all traditional banking providers are friendly toward crypto yet due to its elevated risk profile. 

However, there are options emerging tailored specifically for businesses dealing with digital currency.

The ideal account would be with a digital crypto bank that can facilitate both fiat currency and crypto transactions seamlessly. Leading providers like The Kingdom Bank (a digital crypto bank) offer business banking accounts designed for crypto-friendly businesses. 

Accounts provide payment rails to directly deposit crypto into fiat wallet balances without hassle.

Businesses also benefit from tools for tracking crypto sales revenue and converting balances per payment schedules. 

Customer service is attuned to the unique needs of crypto-based companies. A full-service crypto friendly bank can eliminate friction associated with moving between the traditional and decentralized financial systems.

Who Can Receive Crypto Payments?

In principle, any individual or business can receive cryptocurrency payments if they have a compatible crypto wallet or exchange account. 

However, certain wallet providers and exchanges have their own limitations on which countries users can reside in.

To be able to legally and practically accept crypto as a business, you need the right corporate bank account structure. 

As mentioned, a tailored digital bank account through a provider like The Kingdom Bank is ideal. They can facilitate all accounting, compliance, and tax obligations associated with crypto transactions as a full-service banking partner.

Some other specific entity types that can legally receive crypto payments include:

• Sole proprietorships and single-owner LLCs can use personal wallets but a business bank account is preferable.
• Corporations, partnerships, and multi-owner LLCs need a corporate business bank account to properly handle crypto revenue and recordkeeping.
• Non-profits and charities can fundraise using crypto if they have acceptance policies in place and work with a digital bank.
• Freelancers and independent contractors can choose to invoice clients and receive payment in cryptocurrency directly using wallet addresses or exchanges.

Most Advantageous Digital Bank to Receive Crypto Payments

For any business looking to enter the crypto economy and accept digital currency payments, having the right banking partner is crucial. 

An ideal choice is The Kingdom Bank – a fully licensed and regulated digital bank catering specifically to crypto businesses and individuals.

Some key advantages of using The Kingdom Bank include:

• Corporate crypto banking accounts optimized for businesses
• Full on and off-ramp services to easily receive, store and convert crypto/fiat seamlessly
• Advanced accounting integrations for tracking crypto transactions and revenues
• Expert teams well-versed in crypto compliance and tax obligations
• Dedicated digital wallet support across major cryptocurrencies
• Powerful APIs to easily integrate crypto payments into websites and platforms
• Competitive rates on crypto conversions with no hidden fees

With The Kingdom Bank handling the backend banking and compliance, any business of any size can comfortably expand their revenue opportunities by welcoming crypto payments. 

Signing up is simple online and staff are available to provide expert guidance throughout the onboarding and beyond.

As cryptocurrency and blockchain technology become more deeply ingrained in our economy and culture, the advantages for businesses to start accepting these digital payments will only continue to grow. 

By partnering with an innovative, yet fully regulated bank like The Kingdom Bank, any company or organization can tap into this exciting new revenue stream.