What Is Covered In This Article?
Why Bitcoin is a good payment option for businesses?
“Bitcoin will remain, in my opinion, a relentless anomaly that refuses to go away – a black swan that cannot be ignored or extinguished” – Andreas Antonopoulos
Bitcoin has unique features that make it an inexpensive and a secure way for making business payments. Let’s see why.
Why Bitcoin Is a Good Payment Option for Businesses
The following features makes Bitcoin is a good payment option for businesses.
Low fees: In order to receive Bitcoins, there are no fees to be paid. Even when spending Bitcoins, many wallets let you control how much fees should be paid. Wallets usually have quite reasonable default fees, though higher fees can help in getting faster confirmation of your transactions. The best part is that the amount transferred and the fees for the amount have no correlation. It is possible to send 50,000 Bitcoins for the same fees as sending one Bitcoin.
Protection against Payment Reversals: Businesses that accept PayPal or credit cards face the problem of payments that are reversed later. The cost of such fraud leads to increased prices and limited market reach, which in turn penalizes customers. Since Bitcoin payments are irreversible as well as secure, there would be no more of such cost of fraud.
Quicker international payments: Businesses don’t have to wait for 2-3 business days for payments to go through, check the banking holidays, or calculate the additional fees for international money transfer. Sending Bitcoins internationally is quite easy and there are no special limitations on the maximum amount or minimum that businesses can send.
Multi-signature: Additional features like multisig ensure that the Bitcoins can be spent only if a certain number of people authorize the transaction. For a business board of directors, this is quite a blessing as they can not only prevent unauthorized expenditures but also track which members permitted each payment.
Transparency: Bitcoin provides complete transparency. This is quite useful in the case of non-profit organizations as they can let the public see how much they receive in donations.
No need for PCI compliance: Credit cards need excessive security checks in order to comply with the PCI standard to be accepted online. Although Bitcoin needs businesses to secure their payment requests and wallets, businesses will save on the costs and responsibilities that come with processing sensitive information like credit card numbers from their customers.
Get more business and visibility: Since Bitcoin is still an emerging market, many new customers are searching for ways to spend their Bitcoins. If businesses start accepting Bitcoin payments, it will not only attract customers but also increase visibility, especially for online businesses.