Cryptocurrency. It’s on everyone’s mind. While 2017 saw a significant increase of cryptocurrency investments, the same is not right for Bitcoin payments. For cryptocurrency to become mainstream, we must focus efforts on business adoption of payment platforms that accept cryptocurrency.
Sensing the opportunities, merchants are becoming interested in taking payments in Bitcoin as a means of payment for their products and services. Here, we’ll showcase the 5 main reasons merchants in the world of retail have started accepting Bitcoin. We’ll explore merchants’ motivations to use cryptocurrency; explain how cryptocurrencies lead to increased efficiencies and revenue; and how blockchain payment platforms provide a sophisticated approach to loyalty programs.
Reason 1: Bitcoin Is Appealing to New Customers
The recent survey by Harris Poll for Blockchain Capital says that 43% of men aged 22 to 37 choose to own $1,000 worth of digital cash instead of government bonds. Also, the Cambridge College for Alternative Finance reveals that one in three Millenials will buy Bitcoin or any other digital coin in 2018 across the globe.
Reason 2: Reduced Transactions Fees
Transaction fee reduction is a major motivator for business owners. More than 70% of merchants surveyed indicated this as a motivating factor. Until now, both the customer and the merchant paid cryptocurrency fees. The merchant who accepts Bitcoins will face fewer changes when this way of payment becomes a mainstay, and more processing services are introduced.
Reason 3: Merchants Perceived as Innovators
Bitcoin payment acceptance holds marketing benefits for forward-thinking business owners Shopify, Expedia and PayPal are amongst some of the major companies who accept crypto. According to merchants surveyed, 67% of store owners considered this to be a good reason to start accepting cryptocurrencies. You will more eagerly buy a new gadget from a company who is innovative.
Reason 4: Customers Spend More and Decide Faster
People still have strange spending habits that can prove beneficial to merchants. For example, people tend to spend up to 18% more when using credit cards. Using virtual money has a psychological effect on the buyer which gives way to higher spending patterns.
Reason 5: Cryptocurrency Increases Customer Loyalty
Bitcoin and other blockchain loyalty programs have the potential to transform the loyalty program industry as we know it. For example, tokens accumulated in your local pharmacy could be converted to gift cards for local pizza delivery, and vice versa. No wonder 50% of business owners consider loyalty programs a bonus to become a crypto adopter and take Bitcoins as payment.
It’s clear that there are many benefits for the merchant who accepts Bitcoin. In 2018 Nomura Instinet surveyed merchants who made at least $100,000 in annual revenue and 60 percent said they would accept bitcoin instead of USD. Existing payment processing ecosystems realize benefits of Bitcoin for both merchants and users alike.
Cryptocurrencies like bitcoin are especially suited for buying and selling goods over the Internet – with low fees and speedy transactions. Now a growing number of businesses are accepting digital currencies, as the available options for payments increase in number and function.
There are now many cryptocurrency payment processors that integrate cryptocurrency e-commerce into your website. Payers can use QR codes that are sent to the payment processing platform. Merchant terminals are also implementing tools to enable Bitcoin transactions at point-of-sale.
One of the most significant benefits is that cryptocurrency cannot be counterfeited as it is fully digital and every transaction is secured by creating cryptographic code. There is no need to share your identity or location or the details of the transactions made between you and the beneficiary. It is truly decentralized. Also, payments cannot be reversed arbitrarily by the sender, and all chargebacks are dealt with directly by merchants which gives them more control. The crypto coin is virtually impossible to fake or duplicate, which makes transactions inherently secure. The only problem from the merchant’s perspective is taking on an additional currency is increased accounting load and taxation issues that need to be clarified based on their jurisdiction and its stance towards cryptocurrencies.
For early adopters, it’s a great time to start accepting payments in cryptocurrency before their competitors do. When you embrace this new payment revolution, you gain the first mover advantage. Here’s the list of companies that accept payments in Bitcoin in 2018 (in alphabetical order):
- 4Chan.com (image boards)
- BigFishGames (gaming)
- Bloomberg (media)
- CheapAir.com (travel)
- Dish.com (media)
- eGifter (gift cards)
- Expedia (travel)
- Fancy (photo sharing)
- Microsoft (electronics)
- MovieTickets.com (retail)
- Mspinc.com (health)
- Namecheap (domain name registration)
- Newegg.com (retail)
- Overstock.com (retail)
- PayByCoins by Intuit (payment processor)
- PizzaForCoins.com (food delivery)
- Reddit.com (social media)
- Reeds Jewellers (retail)
- Roadway Moving (removals)
- Seoclerks.com (media)
- Shopify.com (eCommerce)
- Subway.com (restaurant chain)
- SunTimes.com (media)
- Virgin Galactic (travel)
- WordPress.com (blogging)
- Zynga.com (gaming)
This is not the most exhaustive list. As payment processors are gradually adopting cryptocurrencies, local businesses start accepting Bitcoin and altcoins more easily. You can use a handy app Cryptofind to find a crypto-friendly merchant in any location.