Why do mainstream companies need to accept crypto as a payment method?
Nowadays, the world is undisputedly moving towards a new phase, decentralization. The emergence of blockchain technology gave birth to countless crypto projects and currencies, therefore, each with its own community, structure, particular use case, utility, and more. Although every crypto project is different in its own way, they are all changing the way society engages in day-to-day financial activities.
What can crypto do for my company?
Many studies, including ones from Forbes or Deloitte, have assessed the many rationales behind why some companies are using cryptocurrencies. Thus, the main ideas drawn are that companies can benefit from crypto in the following ways:
- Crypto enables access to new capital and liquidity pools through traditional investments that have been tokenized, as well as to new asset classes, enabling diversification.
- Crypto can provide access to new demographic groups meaning that it can act as a marketing tool.
- Crypto furnishes certain options that are simply not available with fiat currency. For example, programmable money can enable real-time and accurate revenue-sharing while enhancing transparency to facilitate back-office reconciliation.
- This type of currency may serve as an effective alternative or balancing asset to cash, which may depreciate over time due to inflation. Crypto is an investable asset, and some, such as bitcoin, have performed exceedingly well over the last years in spite of the risks of volatility.
To spark your company’s interest in amassing crypto as an asset class, here are some of the benefits of adding cryptocurrency as a method of payment:
Security
The chances of fraud, although still existent, are reduced to a great extent as cryptocurrencies are recorded on the blockchain and, therefore, the transactions are permanent. This enables trust and ensures that payments have gone through, regardless of any faulty claims by potential ill-intended business partners. In addition, blockchain provides full transparency, meaning that you can easily track all inflows and outflows out of your business, allowing for a more accurate accounting process.
Privacy
As we know, anonymity is one of the trademark benefits of cryptocurrency payments. Therefore, by allowing your customers to pay while using some type of token, you are also providing them the freedom to be anonymous while respecting their privacy. Even if some transactions might ask for your info, the amount of data is not even close to the traditional payment system. Nevertheless, this is a fine line that you should be careful with - you don’t want to do business with dangerous individuals and crypto payments do not provide a KYC process.
No more chargebacks
Businesses have to bear a lot of losses due to chargebacks, especially when some of them are not justified by a legitimate reason. Crypto payments can help in this regards, as the transactions that take place cannot be altered. They are recorded on an immutable public ledger. Therefore, businesses can eliminate potential fraudulent chargebacks by accepting crypto payments. The convenience of paying with crypto should come with some terms, including that of removing chargebacks for payments performed as such.
No more inconvenient currency conversions
Supposedly, your business tends to make international deals, and cross-border payments via multiple banks through several accounts can get quite frustrating if currency conversion is involved, creating additional obstacles like delays and new costs. Allowing payment in cryptocurrencies means that no more intermediaries are required, drastically reducing time and effort.
Paying or collecting payments in digital currency instead does not involve any cross-currency settlements. Perhaps it’s not the most relevant benefit for most businesses, but in some instances, it can make you appreciate even more the simplicity cryptocurrencies bring to the table
Use crypto for marketing
New customers might be interested in your business since it accepts some of the cryptocurrencies they own as payment, causing decent marketing opportunities might manifest. Therefore, not only do you serve a product or a service, but also make it accessible to as many people as possible while letting them know that if you own crypto, you’re always welcome to do business here.
By providing means to pay with crypto, merchants gain a competitive advantage in the early adopter’s market and access a new segment of customers that only gets broader with time. You can even cooperate with your payment provider to get more exposure to crypto-friendly online shoppers. In other words, if you use this opportunity wisely, it’ll pay off sooner rather than later.
HYVE can help you start earning crypto now!
HYVE not only allows companies to look for employees and pay them in crypto but also allows them to provide their services and receive payments directly through the platform. Even if the current companies that are using HYVE are within the crypto space, HYVE is looking to attract companies from the mainstream sectors and onboard them to use the platform. If you are interested in how HYVE works and want to set up an account, follow the link here to find out more information. We have a very informative tutorial series to help out any potential users!
In addition, HYVE has been proactive in establishing partnerships that will increase adoption over time, facilitating the provision of services or paying professionals easier than ever! With all being said, if you have a business, you should consider integrating crypto payments and join the new revolutionary movement! Are you ready to up your game?
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