Wondering why businesses have begun embracing crypto?

A late estimate from 2022 discloses that around 2,350 businesses in the US were taking Bitcoin for their products and services – excluding BTC ATMs. More and more companies globally take crypto and other types of digital assets for numerous purposes, including transactional, operational, and investment-based reasons. With the rapid spike in popularity of Bitcoin payments in an arguably short time, the combined efforts of businesses, researchers, and blockchain companies resulted in an enlarging pool of cryptos that businesses can fetch. You can pay for an airplane ticket with Ethereum and for a restaurant meal with Solana. If you deem the XRP price prediction appealing and would rather introduce this crypto into your portfolio, you can do it – some businesses also take XRP. 

As increasingly more businesses open their arms to crypto, it’s only normal to try to take a peek and determine whether your business could profit from crypto payments sooner or later. You want to keep, if not even grow, your customer base. So, what do you do if your financial payment structure lacks an option that modern customers are after, like crypto? Before we get to this bridge to burn, let’s discover the essential reasons businesses implement crypto payments to learn how you could shape a new payment method in any eventuality. 

“Hands-off” payments 

Customers want facile payments, and future-oriented businesses integrate the methods that can meet these ever-changing needs. Converting cryptocurrency to fiat currency and vice versa is a way to facilitate business payments. Customers can pay without touching the money, and companies can take or make payments in turn without touching them either. Simply put, a service provider can take responsibility for converting money for a fee, keeping digital currencies off the books for businesses, thus allowing for a “hands-off” approach. 

Enabling payments in Bitcoin, Ethereum, Ripple, and so on without needing to state transactions on the balance is a time-efficient way of engaging and profiting from cryptocurrency payments. As expected, a few tweaks across the corporate functions’ spectrum are needed, like getting the word spread about your new service to attract crypto-interested parties. Businesses taking on this solution usually reach out to third-party vendors to manage their transactions. 

The intermediary vendor usually operates as the company’s agent, taking or making crypto payments without the bulk of conversions necessary. This might also be the easiest way to integrate and benefit from crypto payments. Additionally, the business may experience fewer disruptions to its internal functions, as such a solution doesn’t imply adding crypto to the balance sheet. 

Fee cost economies 

Businesses can benefit from a leaner and more lucrative financial structure by introducing crypto payments. Compared to traditional transactions, where banks take up a considerable portion of profits, businesses no longer have to deal with the unnecessary charges brought about by intermediaries. Taking crypto payments benefits both worlds, as customers, too, feel the financial relief caused by the removal of the pricey go-between involvement. Businesses thus turn to crypto to slash operational costs, cater to a wider consumer category, and offer clients more value for their money in some situations. 

Merchants get in charge of paying the afferent transaction fees depending on the platform chosen, as well as setup fees based on the payment processors. There are a few alternatives to take, such as PayPal, which can take around 4% for each transaction. Cryptos come with lower fees, or none at all, by case. For instance, there are BTC exchanges that draw merchants in by offering fees of less than 1%. PayPal, for example, charges close to 4% per transaction (and sometimes more). At the same time, credit card companies may take fees in the range of 2% to 4%.

Speedy international transactions

If you own a business, you probably feel the phrase “time is money” more pragmatically than anyone else. You surely find no joy in encountering time lags between the moment a customer makes a payment and the money actually arrives in your account. Usually, you can wait from three days to even weeks. This sluggish process is a profitability killer.

Nevertheless, payments made with cryptocurrency are settled in an instant. This speeds up both international and local payments, which is why many individuals transact crypto themselves when businesses aren’t involved. In light of declining barriers to international payments, the banking system is portrayed in an unfavorable light due to the slowness with which it processes payments. 

Slashed chargeback rates

Businesses deal with chargeback fees and usually lack recourse for spoof chargeback claims due to the obligatory or optional buyer protection rules they must respect. Many of these regulations are put in place by the credit card companies that use them. Businesses that don’t comply with the provided obligations can face penalties for the transactions that get charged back, lacking the power to contest the tariff. Nevertheless, with digital currency payments, these problems have become part of the past. All sales involving crypto are regarded as fiat money. No bank obliges the business to deal with chargebacks, especially with fake ones, like it’s been the situation until not long ago. This means that unsatisfied customers can reach out to the company itself and talk to the management charged with this responsibility, following to work through the problem to find a solution. 

A case in point with Ferrari 

While the small corner shop may find it unrewarding, if not too costly, to implement crypto payments, the same doesn’t apply to blue-chip companies. Deep-rooted and internationally recognized businesses have numerous and diverse benefits to reap, depending on the industry. Ferrari’s example stands out—the company is one of the most recent to integrate crypto payments into its platforms. According to the titan’s commercial and marketing chief’s statement, those who sit well and are seasoned in crypto trading are inclined to prefer crypto payments over traditional ones. 

As per Ferrari reps, the payment processor commits to accepting licit cryptocurrencies that haven’t been involved in shady financial activities.