5 Things Businesses Should Know About Cryptocurrency as Payment Method

Cryptocurrencies are becoming popular among people. More companies accept Bitcoin and other cryptocurrencies as payment method after first taking a wait-and-see attitude. According to a recent survey by Skynova, about one-third of small business owners and senior executives in America claim their organizations accept cryptocurrencies. The global cryptocurrency acceptance footprint is also growing, with countries like El Salvador and the Central African Republic making Bitcoin a legal tender.

What should businesses be more familiar with the growing acceptance and use of cryptocurrencies as a payment method?

What Consumers are Saying

As cryptocurrency use becomes mainstream, more tech-averse consumers prefer cryptocurrencies as a payment method. Thirty-nine percent cite their leading motivation to buy crypto as transactional reasons, and they represent the new wave of cryptocurrency consumers.

For the PYMNTS May 2021 Cryptocurrency Payments Report, researchers polled over 8,000 U.S. consumers on this trending subject to examine their desires and needs about cryptocurrencies.

New research reveals that present users, former users, and even non-users are ready to buy and utilize cryptocurrencies, claiming that they would if more retailers accepted them.

Thus, around 46M consumers, including 17M non-owners, or 18% of the adult population, are likely to make a cryptocurrency transaction. People who used it to make purchases did so via delivery aggregators for everything from groceries and meals to real estate and diamonds.

From the statistics, consumers are asking business owners to provide cryptocurrency payment options.

Not All Cryptocurrencies are Equal

Bitcoin is a household name but there are many others like Ethereum, Litecoin, Ripple, Velas, and more. Because many cryptocurrencies have small user bases, they might never become widely used payment forms. Consumers and businesses will accept cryptocurrencies with a sizable, established user base.

For a strategic market positioning, businesses should employ a crypto payment gateway to accommodate a broad customer base. Enterprises such as eCommerce platforms stand to penetrate the global market, and businesses attract consumers using the cryptocurrency payment acceptance tools.

Safety Measures

When making online purchases from eCommerce platforms like Etsy, buyers and sellers aren’t 100% sure of the transaction or business legitimacy. Blockchain enables buyers and sellers to permanently upload validated personal papers like a credit report, a contractor’s license, or a driver’s license from the government. The AML/KYC structures ensure trustworthy information is available when conducting online business. Using services like crypto payment gateways ensures business and consumer funds remain safe when transacting. Reliable data increases trust, encouraging users to transact with an enterprise.

Try Stablecoins

The cryptocurrency market volatility affects asset value; however, stablecoins provide a profit-saving option. Various stablecoins exist in the market and offer a hedge against market volatility. Businesses unsure of their cryptocurrency portfolio have stablecoin options accessible in cryptocurrency exchanges. In a volatile environment, enterprises trade their unstable assets for stablecoins pegged to fiat, like the USD, to protect their revenue.

Cryptocurrency Developments (Don’t be left behind)

It’s reassuring that more payment alternatives (crypto) are available to small and large business owners. If a company isn’t changing, the world around it is. While PayPal works to make it as easy for the typical business owner to participate in the movement, cities like Los Angeles and Chicago have established themselves as centers for cryptocurrency stores and eateries.

Among the methods to encourage greater innovation in the cryptocurrency space is by providing incentives. Businesses can do this by adopting crypto payment solutions and offering their customers diverse benefits like discounts or free transactions, boosting adoption and creating new opportunities for business owners.