As bitcoins rise in popularity, companies have been considering the idea of including bitcoins as a valid payment option. While cryptocurrencies like Bitcoin are known for being volatile in nature, they can be a fairly safe option for payment if handled correctly. The features that make accepting Bitcoins as payments lucrative for companies include:
- Engagement with the competitive edge of the business world
- Opportunity to open up to more customers worldwide
- Lower payment processing fees
What are the benefits and problems of Bitcoin payments?
There are plenty of benefits that would drive a company or individual to accept bitcoin payments with open arms. One of the biggest benefits is the reduced payment processing fee. While other payment modes, especially using credit cards, incur a processing fee of 3-4%, payments using Bitcoins charge none. This may not seem like a big deal, but it is a huge benefit for merchants and companies.
While credit card companies mostly favor customers, Bitcoin is a decentralized platform. So once the payment is made, there is no question of disputes. They also present a good opportunity for companies that want to invest in cryptocurrencies. Additionally, they also make international transactions easy and thus open up businesses to new customers.
Despite the many benefits that bitcoins offer as a payment option, there are certain drawbacks too. One of them is that even though Bitcoins are quite popular, most people still prefer traditional payment methods. And even if there are customers interested in making payments through Bitcoins, there can be certain hiccups along the way and with bitcoins, payments sometimes can be delayed depending on the network. There is also no support available in case of any emergency or fraud.
Along with this, there is a constant fear of the crypto value dropping suddenly as they are known for their volatile nature. However, this can be avoided by immediately changing crypto into cash by using a payment gateway. It may charge 1% of the payment, but it is still preferable over the 3-4% processing fees or incurring losses because of Bitcoin’s volatility.
How to accept Bitcoin payments
The processes companies and individuals need to take to enable Bitcoin payments are fairly simple. However, it is always recommended to weigh the pros and cons before venturing into the crypto world. The steps one needs to take to enable payments using bitcoins are:
Setting up a crypto wallet – after getting acquainted with the rules and regulations, one needs to set up a crypto wallet in order to access the cryptocurrencies. Alternatively, setting up payment gateways is also a good idea.
Adding them to checkout processes – after setting up the wallet, the website needs to be updated to include the option of using Bitcoins as a payment method.
Integrating it with accounting software – this ensures that the Bitcoin transactions are recorded along with the rest of the business transactions.
Overall, accepting Bitcoin payments has its advantages and disadvantages. It is crucial for businesses to weigh the pros and cons and understand the risks involved before deciding to accept Bitcoins as a payment option.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
