With the proliferation of web-based mobile technology, consumers have come to expect a variety of digital payment options. From online payment platforms, such as PayPal and Venmo, to mobile wallet services like Apple Pay and Google Wallet, business owners have a number of different payment systems to choose from. But perhaps the most innovative digital method is cryptocurrency payments. Starting with Bitcoin in 2009, there are currently more than 1,300 different forms of cryptocurrency in circulation, with a total market value of nearly $600 billion.
While some view cryptocurrency primarily as an investment vehicle, consumers are increasingly
using it to purchase products and services. Indeed, a 2018 study by the Imperial College of
London found that crypto is set to become a mainstream payment method within the next
If you’re looking to capitalize on this growing trend, here are 4 key benefits you stand to gain by
adopting cryptocurrency as a payment option.
1. Reduce Processing Fees
When you accept credit card payments, the processing companies tack on an additional 3% to
5% processing fee to each transaction. The same is also true for other payment methods such
as PayPal and Stripe. In fact, in 2017 alone, American businesses paid some $90 billion in credit
card processing fees.
However, because cryptocurrency payments pass directly from customer to merchant without
the need for intermediaries, such fees are dramatically reduced, if not eliminated altogether. In
fact, when fees are added to crypto payments, they generally run between 0.5% to 1% per
By offering cryptocurrency as a payment option, you can save significant money on each sale
and pass that savings along to your customers with lower prices.
2. Avoid Disputed Payments
Another hassle of credit cards are chargebacks. Chargebacks occur when an individual
purchases your products or services and then disputes those charges with their credit card
company, often claiming the transaction was fraudulent. Though it’s not impossible to fight
chargebacks, doing so can take a lot of time and effort.
But just like paying with cash, cryptocurrency payments are final and cannot be disputed by a
customer, totally eliminating the risk of chargebacks, fraudulent or otherwise. Moreover, the
blockchain technology cryptocurrency employs verifies that funds are available before the
transaction is complete, making it practically impossible for customers to make a purchase
without the funds in their account to cover it.
3. Enhance Security
Whether made at the point of sale, over the phone, or online, both credit- and debit-card
payments are a tempting target for frauds and identity thieves. And since they lack the security
resources larger companies employ, small businesses are among the most frequent victims of
The risk for identity theft and fraud can even lead some customers to shy away from making
purchases, especially those made using online storefronts. For instance, a recent study found
that 17% of consumers decided not to make on online purchase due to security concerns, and
another 18% failed to make a purchase because the company asked for too much personal
Yet when making cryptocurrency payments, customers aren’t required to share any personal
data—payments are completely anonymous—so there isn’t any identifying information for
hackers to steal. Indeed, the anonymous nature of cryptocurrency is one of its biggest draws for
people who place a high value on privacy. In fact, some choose cryptocurrency as their
preferred payment method for the simple fact there’s no way to identify the purchaser.
4. Expand Your Customer Base
Adding crypto as a payment option could attract a whole new set of customers, particularly
those who are die-hard fans of the technology. Indeed, there are a growing number of people who specifically seek out companies that accept digital currencies, and you can break into this
burgeoning customer base.
By adopting this new payment method sooner rather than later, you can also gain a leg up on
competitors who don’t accept crypto, forcing them to play catch-up with you down the road.
And with more and more brands, organizations, and financial firms accepting digital currency
every day, it’s only a matter of time before cryptocurrency payments become the rule, rather than the
Start Accepting Cryptocurrency Payments
Given how far and fast digital currency has advanced, tech-savvy entrepreneurs should give this
new payment technology serious consideration. If you’re ready to make cryptocurrency a part
of your business, start by consulting with us. We can help you navigate the various legal,
financial, and tax issues related to cryptocurrency transactions, so you can achieve these
benefits without any unnecessary risk.
At Jones Legal, P.C., we offer a complete spectrum of legal services for businesses and can help
you make the wisest choices on how to deal with your business throughout life and in the event
of your death. We also offer a LIFT Start-Up Session™ or a LIFT Audit for an ongoing business,
which includes a review of all the legal, financial, and tax systems you need for your business.