Businesses have been able to take advantage of many technological advancements in recent years, not only when it comes to their day to day business operations, but also when it comes to the handling and accepting of payments.
Financial transactions between a business, its clients, and suppliers have been made much simpler, faster and more convenient thanks to certain innovations. One of these innovations is digital currencies, such as Bitcoin. And it’s not unique, its digital currency competition/companion, Ethereum, is also rapidly gaining popularity.
So how can digital currencies, like Bitcoin, be used in business transactions, and why are they increasingly seen as a better alternative to traditional currency transactions and transfers?
No set fees
When your business receives Bitcoins, there is no set fee. As a matter of fact, many Bitcoin wallets will let you be the one to control how large you want the fee to be when you are sending money. Additionally, many Bitcoin wallets offer default fees which are entirely reasonable, although a higher fee may encourage a speedier confirmation of transfer. The fees do not depend on the amount being transferred – so the fee for sending 100,000 Bitcoins could be the same as the fee for sending 1 single Bitcoin.
If your business accepts credit card payments or payments from platforms like PayPal, then you will already be aware of issues when it comes to payments which are reversed later on. Due to charge back fraud, some businesses end up having to increase their prices, or limit the markets in which they operate. But payments done with Bitcoins are secure and also irreversible, which means that the expenses related to fraud are no longer a burden for businesses.
Faster payments across international borders
Bitcoin allows your business to benefit from faster international transactions and transfers as well. If you send Bitcoin payments, you don’t have to worry about waiting for three days (as with ordinary bank transfers) and there are no additional fees associated with international transfers, either. Furthermore, if you send Bitcoins, there are no minimum or maximum limits for the amount sent.
No more compliance requirements
When accepting credit card payments online, there are extensive checks, especially security checks, required in order to comply with various standards. With Bitcoin, you still have to make sure your Bitcoin wallet is secure and your request for payment is secure, but you don’t have to be burdened with the expense and responsibility associated with the processing of confidential and sensitive customer data, such as credit card numbers.
It remains to be seen if business will adopt the use of digital currencies like Bitcoin in the future, but Bitcoin certainly offers some clear and beneficial advantages in today’s global business environment.