4 Reasons To Be A Pioneer Now And Use Cryptocurrency For Business

The advent of new technologies in finance lived a glorious moment with the appearance of blockchain and cryptocurrency. Among the financial technology trends of this year cryptocurrencies are on top, but how they will evolve further is still a risky bet.

Step by step, cryptocurrencies gained awareness and these days are generating vivid polemics thanks to their sharp skyrocketing on exchanges. But they are mostly used as payment method for online acquisitions.

As digital currencies backed up by encryption technology, they operate independently from the traditional banking system and are accepted as cash in different countries. Besides investing in cryptocurrencies, a more mundane question is nowadays if businesses should include them among their payment options or not. Each business should consider the pros and cons on its individual case.
Anyway, cryptocurrencies present some heavy to ignore advantages as follows:

Costs reduction

Yearly, merchants across the globe pay billions in payment processing fees to financial institutions. These middle men are omnipresent in traditional banking transactions, charging between 2 and 5 percent per operation. In the long run these amounts add up significantly and impact on your profitability.

Cryptocurrencies are direct decentralized systems and don’t require an intermediary financial institution or a tier processing part for each transaction.Thus, these percentages paid as processing fees are disappearing from costs. You keep them!

Your control over cryptocurrency is superior, as no one has authority over your accounts. Meanwhile a bank can freeze your accounts and block your funds, a payments processor such as PayPal or Skrill can suspend or close your accounts.

Being an international currency accepted practically all over the world, its benefits multiply within international trade operations. International payments fees and exchange fees are cracked down.

Processing time reduction

Typically, money transfers are delayed a day or more within the financial system, depending on the banks involved in the payment transaction. If we are referring to international transfers that’s even longer. This delay is caused by the banks executing the transaction and slowing the process. In business, delayed payments are a frustrating issue.

Cryptocurrency based on blockchain ledger are generally processing the payments in real time, or in several minutes.

From days to minutes, well that’s tremendous improvement!

Minimize frauds and chargebacks

With cryptocurrencies the involved parties should approve the transaction, so chargebacks are practically excluded. Just like cash transactions, the ones with cryptocurrency are irreversible, because they are inserted in blockchain via a system called mining and cannot be undone.
Also, cryptocurrencies are more secure as their private keys are protected from the online medium by the cryptographic system. And thus, less vulnerable to hacking attempts or viruses.

Competitive advantage

As cryptocurrencies are spreading, more and more customers are considering them as a payment option. You have to keep up to date and adopt new technologies in financial services, if you want to gain or conserve your competitive edge. Being an early adopter of financial innovations is sure way to do that. And the more options of payment you offer your clients, the better.

Even if cryptocurrencies are providing incontestable advantages and are on a hype now, there are still issues to consider before answering positively to this challenge. Digital currencies are in a somewhat gray legal area, they are experiencing a wide variation of their prices in short periods of time – mainly speculative, converting cryptocurrency into cash can be a real headache.

Indeed, cryptocurrencies are on the verge of becoming the preferred currencies of the future, but until then, a massive bubble might be waiting on the way. In these unpredictable conditions, each business should consider the pros and cons to adopting cryptocurrency into their systems, rather as a long-term strategy.