Benefits of Accepting Crypto Payments in Business10 min read

Benefits of Accepting Crypto Payments in Business10 min read

With the rise of blockchain and cryptocurrencies over the past decade, more and more businesses are exploring the potential that crypto payments provide. 

Digital currencies like Bitcoin, Ethereum, and others offer merchants new opportunities to reach customers around the world in innovative ways. 

However, many small business owners are still unsure about whether accepting crypto is right for their company. In this article, we’ll break down the top benefits of receiving crypto payments in business and explain how even small enterprises can get started.

What Do You Gain from Receiving Crypto Payments in Businesses?

There are several compelling advantages for merchants that decide to accept cryptocurrency as a form of payment. Here are three of the primary gains:

Access to a New Demographic

Cryptocurrency users tend to be younger and more tech-savvy compared to the average consumer. By accepting crypto, businesses open their doors to this emerging population segment that may become future customers. Some of these tech-native users may choose to shop at merchants that support their preferred payment method.

Lower Transaction Fees

Compared to credit cards, crypto payments can potentially reduce variable transaction costs. Most traditional payment processors charge merchants a percentage of each sale as a fee. However, because cryptocurrency transactions operate on decentralized blockchain networks rather than centralized payment rails, fees tend to be much smaller.

Speed and Global Reach

Settling a crypto transaction confirms it on the blockchain network nearly instantly, versus the 1-3 business day waiting period for debit/credit card transactions. Additionally, digital currencies bypass national borders and foreign exchange rates, allowing merchants to reach customers worldwide easily with no issues of currency conversion.

What are the Benefits of Crypto Payments to Businesses?

Aside from the direct benefits previously mentioned, accepting cryptocurrency as a form of payment also provides merchants with several strategic advantages. Let’s explore three of the main gains:

Innovative Brand Positioning

Being early adopters of new payment technologies helps businesses project an image of innovation and modernization to their customer base. By displaying their support for cryptocurrencies, merchants associate their brand with the cutting edge of finance—a valuable perception for attracting younger, more tech-savvy clientele.

Future-Proof Financial Infrastructure

Blockchain and digital currencies are poised to increasingly impact the global financial industry. Integrating crypto capabilities now future-proofs a company’s payment infrastructure for emergent technologies and business models on the horizon. Merchants get a head start adapting to these upcoming changes before competitors.

PR and Marketing Opportunities

The crypto community is an engaged audience always looking for real-world use cases of their preferred currencies. By publicizing their new crypto payment acceptance, businesses can garner positive press within blockchain media outlets and influencer marketing channels. The exposure raises brand awareness both within and outside the existing customer base.

3 Main Benefits of Accepting Crypto Payments in Business

For merchants still weighing the pros and cons of adopting crypto, here are the top three advantages that demonstrate why acceptance can make long-term strategic sense:

Reduced Fees

As mentioned, credit card transaction costs range from 1-5% but crypto fees are usually under 1%. Over many thousands of sales, the savings add up significantly. Lower fees mean more money reinvested into business growth.

24/7 Global Reach

Crypto knows no borders, enabling merchants to tap into an enormous worldwide consumer base without barriers. Larger potential customer pool equals more opportunities for increasing sales volumes over time.

Future-Proofed Innovation

While still nascent, blockchain is undoubtedly the future of finance. Adopt early to gain a competitive edge and brand reputation as a cutting-edge company. Forward-thinking posture aligns the business for ongoing technological transformation in payments.

The strategic gains of accepting cryptocurrency payments can benefit enterprises of all sizes, including small businesses. Let’s explore how:

Can Small Businesses Accept Crypto Payments?

Yes, smaller companies can absolutely leverage crypto payments to boost their operations. 

Fortunately, numerous resources now make it simple for even sole proprietorships and nascent startups to get involved:

• Payment processors like The Kingdom Bank handle the technicalities of crypto transactions seamlessly. We convert received coins to fiat immediately at settlement.
• Apps exist that integrate directly with popular shopping carts like Shopify, allowing merchants to add crypto as a checkout option with just a few clicks.
• Many banks now offer online digital banking accounts tailored for businesses engaging in crypto activities. Examples include accounts from The Kingdom Bank licensed under offshore banking regulations, enabling international e-banking and crypto services.

The onboarding process is no more difficult than setting up typical debit/credit card processing. Perhaps most importantly, access to innovative payment rails can help level the playing field for small companies competing against industry giants. 

The global reach of crypto gives even nascent startups opportunities to attract new customers worldwide.

To gain these strategic advantages, it’s important for businesses of any size to choose the right online banking partner that supports their crypto payment goals. 

Online Digital Banking Account for Crypto Payments

• Private and corporate banking accounts tailored for merchants and funds handling crypto
• Full banking license and financial regulation under offshore banking statutes
• Capability for businesses to seamlessly send/receive crypto payments, settle funds to bank accounts, and provide necessary banking infrastructure for digital currency operations
• Advanced security and financial controls for keeping business finances and digital assets safe
• Convenient digital account management through online and mobile banking interfaces

Partnering with a progressive bank like The Kingdom Bank reduces complications for merchants utilizing crypto while remaining fully compliant. 

Our specialized offerings cater to the precise needs of companies leveraging new payment rails without barriers.

Accepting cryptocurrency payments provides strategic advantages for businesses of all sizes. Reduced fees, 24/7 global commerce capabilities, and an innovative brand profile make crypto a worthwhile proposition. 

Forward-thinking merchants stand to gain significant long-term benefits by future-proofing their payment infrastructure now. Partnering with banking solutions like The Kingdom Bank also simplifies the onboarding process. 

If you’re ready to open up innovative new revenue streams and attract the crypto customer demographic, consider exploring how crypto payments could add value for your company.