As cryptocurrencies continue to become more prominent, the question of whether or not to accept them as payment is one more businesses will need to scrutinize. Studies indicate that more than 2,300 U.S. enterprises have now opted in at this point, making it all the more prudent to consider whether you should be accepting cryptos in your business. As you consider doing so however, it’s important to weigh both the pros and cons. As with most business decisions, there are both incentives and possible disadvantages associated with the idea, and how crypto affects you will depend on your specific situation and fit.
To help you determine whether digital assets are right for your business, we’ve gone over some reasons to accept –– as well as some reasons you may not need to.
Reasons to Accept Crypto
1) Payment Security
With the pandemic leading to a surge in credit and debit card fraud (attempts rose by 35% in 2020), one thing crypto offers is better payment security. Crypto transactions occur directly from buyer to seller. They also do not require the storage of business or consumer data in a centralized hub where data breaches can occur. Plus, the actual transactions are quick and straightforward, and can be conducted securely on existing equipment (like smartphones and most modern POS systems).
2) Keeping Up
As noted in a previous article on the need to pivot business strategies, it’s important to keep up with the times when running your own enterprise. This, to some business owners, is the key driving factor to crypto adoption. We mentioned above just how many U.S. businesses are accepting digital assets, and it’s worth noting specifically that that number is the result of a notable increase in small businesses adopting cryptocurrency of late. By following suit, you’ll be ensuring you keep up, rather than let these businesses get too far ahead.
3) Casting a Wide Net
Global accessibility is vast in the crypto world, with studies showing that half the population now has access to Bitcoin. That in and of itself means you’re speaking to a large market. Plus, you’ll be opening your arms to a growing population of consumers who are specifically enthusiastic about cryptocurrency, and perhaps roping in more business in the process.
Reasons Why Crypto May Not Be Suitable
1) Time Management
Allowing crypto as a payment method can create inefficiency in your business processes, and potentially add work for your employees. Dealing with refunds during busy seasons, for instance, will require your team to divert time and attention towards individual payment returns –– some of which can be complicated by the fact that crypto values will have changed in the time since the original purchase.
2) Distinguishing Consumers From Investors
It’s also important to recognize that most people within the aforementioned population of crypto enthusiasts are ultimately more interested in trading cryptocurrency than using it as currency. The real excitement revolves around the idea of setting up an account on an online exchange and speculating –– buying and selling digital assets for gains, much as people have long done with commodities and stocks. But even within growing communities of those who trade cryptocurrency in this fashion, most do not make a regular habit of using their digital coins in day-to-day transactions. That’s not to say none do –– there are, again, some who specifically look to use cryptos. But talk of a growing crypto market mostly has to do with trading and investment.
3) Volatility
While crypto is here to stay as a commodity, its time as a functional currency may well come and go. As with the value of anything, supply and demand applies to crypto too. As a result of this (and all of the aforementioned exchange trading) it’s not uncommon for the price of Bitcoin, for instance, to increase or decrease in price by 10-15% from one day to the next. Smaller cryptos occasionally swing by even greater percentages. With currency this volatile, there’s always a risk element.
As you can see, there are pros and cons to the idea. Be sure to weigh both sides as you determine whether or not crypto adoption is the right idea for your business.
Beate Chelette is The Growth Architect & Founder of The Women’s Code, a training company specialized in providing companies an ROI on Balanced Leadership. She has been named one of 50 must-follow women entrepreneurs by the Huffington Post. A first-generation immigrant who found herself $135,000 in debt as a single parent, she bootstrapped her passion for photography into a highly successful global business and eventually sold it to Bill Gates in a multimillion-dollar deal.
Beate works with business leaders and supports organizations by developing and providing training the training, tools, and expertise to create and maintain a balanced, equal, and inclusive work environment that fosters creativity, employee engagement, and corporate growth.
Recent clients include Merck, Women’s Legislative Caucus of California, Cal State University Dominguez Hills, Small Business Development Centers (SBDC), NFTE, CreativeLive, the Association of Corporate Growth, and TracyLocke.
Beate is the author of the #1 International Amazon Bestseller “Happy Woman Happy World – How to Go From Overwhelmed to Awesome” a book that corporate trainer and best-selling author Brian Tracy calls “a handbook for every woman who wants health, success and a fulfilling career.
To book Beate to speak or train please connect here. Your Time Is Valuable!