This article will explain in more detail the cons of using cryptocurrency for doing online businesses in order to achieve more profits.
In recent times, cryptocurrencies have been in the financial news update almost every day. From the establishment of bitcoin ATMs in the USA, the Nigerian government directed banks to stop aiding individuals or companies dealing in cryptocurrencies, Kenyan government adopting cryptocurrencies as a legal tender to India preparing to launch its own cryptocurrency.
Of all these actions, the most important is the influence of cryptocurrency on business. This because cryptocurrencies are currencies and currencies do have effects on businesses. Below are ways through which cryptocurrencies will affect online businesses.
Ease of Transaction
This is one of the major benefits of using cryptocurrencies like Bitcoin, Ethereum, Ripplecoin, and so on for doing business. The ease that comes with using them is second to none. A test was carried out as regards the speed of transferring money. Eight out of the top ten forms of transfers were cryptocurrencies. The other two were digital wallets.
Besides the speed at which cryptocurrency transaction takes effect, the fees of transactions is another major upside of using it for transactions. The fees are very little and remain the same regardless of where you are sending the fund.
Ease of Doing Business
The transaction is the soul of doing business. No matter how good your product or service is, you will not be able to offer them if you will not get paid in return. With cryptocurrencies, you can make multiple transactions within seconds. This makes it easier to do business as you can send money to any part of the world.
Cryptocurrencies also bring another dimension in serving your customers. Lots of online businesses already include PayPal, Payonner, Skrill, Neteller, Visa, and MasterCard as payment options. The absence of cryptocurrencies as an option o payment means that customers have to convert their cryptocurrencies to cash.
This conversion comes with various fees. With the inclusion of cryptocurrencies as payment options, it will be easier to do business as there will be no need for conversions.
Better Brand Visibility
Being able to transact with customers abroad means more people will also get to know you. It also implies that you will no longer have to do business with customers in your locality. You can buy from and sell to individuals both far and near. With each transaction, you get more people to know more about your brand.
The internet is already doing a good job in helping brands grow beyond borders. With plugins like Woocommerce Smart Coupons, you can now match customers to the right products. However, the growth is not complete due to limitations in transactions. With cryptocurrencies, that border will be erased and the growth will be complete.
Adoption of popular cryptocurrencies
This is another impact that cryptocurrencies will have on online businesses. As time goes on, more online businesses will start including cryptocurrencies as a form of payment. However, it will most likely be the more popular cryptocurrencies like Bitcoin, Ethereum, Ripplecoin, Litecoin, and the likes. With time, they will add other in-demand cryptocurrencies.
Online businesses had to adopt new features like WooCommerce Price By Country in a bid to serve their customers better. As more people continue to use cryptocurrencies, online business owners will continue to adopt them.
Level ground for SMEs
Despite the digitalization of commerce (to becoming e-commerce), the gap between major brands and SMEs is still pronounced. SMEs are still struggling with issues like finding, brand awareness creation and so on. Cryptocurrencies can really help close the gap.
With access to a wider audience, SMEs still have a fair chance at making sales. They can also easily source for funds and be credited credited via a cryptocurrency. Top brands work with banks and are often given preferential treatments. Cryptocurrencies treats everyone equally and will ensure that transactions run smoothly for everyone.
There are occasions when transaction has been made but the receiver is yet to receive it due to certain “technical issues”. Sometimes, the issue might be the system itself. Delay in transaction is detrimental to doing business. Imagine a customer making payments and it does not reflect. Or worse off, the money is reversed and the fees are not reversed.
Situations like this strain trust and trust are the number one currency in business. Cryptocurrency transactions are immediate and non-reversible. This system promotes trust and helps build a better relationship with your customers.
Cryptocurrencies offer a lot of positive impact on doing business online. These impacts are even more beneficial to small scale business owners. Its implementation will definitely make doing business online more attractive.
Wrapping it up
You should now have a better idea of the main reasons why cryptocurrency can affect doing online business. More specifically, and to summarize the key points in this post:
- Ease of transaction
- Ease of doing business
- Better brand visability
- Adoption of popular cryptocurrencies
- Level ground for SMEs
- Promoting trust
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