What is Bitcoin? Bitcoin is the very definition of a decentralized currency. It is a very well recognized form of cryptocurrency. A bitcoin is a file, which is stored in a digital wallet on your smartphones and computers.
Today bitcoin is becoming an innovative payment network and can very well be defined as the new kind of virtual or digital currency. It was invented in the year 2008 by a group of unknown people. Today it’s a digital currency, valued at 33097.80 American dollars.
A lot of corporations are now offering bitcoin as a payment method for products and services. Overstock.com is one eCommerce business that is offering the option to its customers. If we are talking big corporate Wikipedia, AT&T, and Microsoft to the only name a few have listed down bitcoin as a payment option.
So if you have a business selling titan repacking kits and wondering if you can accept bitcoin as a payment option? Let us tell you that a lot of small businesses have also adopted bitcoin as an acceptable payment option like 99 Etsy, a random pizza store called Helen pizza in jersey city, N.J is also offering pizza slice for bitcoin, etc.
These are only the names of few small businesses out of many. You are probably thinking why should I accept bitcoins for my eCommerce business? What benefits would there be?
So to help you answer this question, we have a few pointers that will help you understand how bitcoin will benefit your eCommerce business.
Why You Should Accept Bitcoin In Your eCommerce Business
1. There Are No Transaction Fees Involved
Let us be honest, whether you are a customer buying a product or a business selling the products, no one likes transaction fees being deducted from the market price.
Do you know what the transaction fee is? It’s a fee that is charged when you are using a third-party service for payment processing. So if you are using a bank payment option, the bank deducts a certain amount as a transaction fee from the price, and you as a seller get deducted that price.
However, when you are using bitcoin as a payment option since this is a cryptocurrency and does not use any third party, there is no transaction or processing fees deducted. You get the full amount that your customer pays for the product. And let us be honest, every little bit counts.
2. Instant Transaction
When using money gram or bank transfers for accepting payments, there is a certain processing period that is required for you to wait it out to receive the payment. However, when you are dealing with bitcoins, the transaction is instant.
Bitcoin offers ATM services as well, which is, even smoother compared to other options. This ATM allows the customers to buy bitcoin using their debit and credit cards.
3. Protects You From Spammers And Fraud
Bitcoin is a very secure cryptocurrency that uses highly sophisticated encryption, which makes it difficult for people to commit fraud. Chargeback fraud is very common in online transactions. This fraud however cannot happen if you use bitcoin as a payment option because it does not allow reversal of any payment.
Therefore your business is well protected in the face of online payment frauds.
4. International Transactions Are Made Easier
International transactions always have additional transaction costs embedded in them. So if your business is into cross-border transactions, it might be a good idea to put cryptocurrency as a payment option for your customers.
Bitcoin will not be affected by the location of the sender or the receiver, the amount will remain the same. No extra transaction fees will be involved.
5. Enhances Business Reputation
Bitcoin is not a very well adapted payment option by businesses, none the less it has a reputation, therefore the business that has adopted this payments method is the very definition of 2021 tech-savvy businesses.
A lot of people do not even know what bitcoin is and how it works? But they do know it’s a very cool thing that is in the hottest trends of 2021. It showcases that your business is up to date, elite, reliable, and flexible.
So if you are just starting your business, it might not hurt if you put bitcoin as a payment option.
Drawbacks Of Accepting Bitcoin As Payment In Your eCommerce Business
Just like any other business, bitcoin has a few benefits as well as a few drawbacks. The following are a few things you need to keep in mind if your accepting bitcoin as a payment option for your business.
- The rate of bitcoin is always fluctuating. So today you might think you have the needed amount to buy a certain product, but tomorrow the market rates might fall and you might not be able to buy the product anymore. The market is volatile and you need to keep that in mind in terms of accepting payment or making payment.
- Bitcoin was not made by a set of professionals, therefore nobody knows if they are secure and if they can fight off hackers. God forbid, a hacker can access your digital wallet, it is not just your files at risk but all of your money or business revenue.