Cryptocurrency is all the rage these days, with wild price fluctuations occurring almost daily. But with this medium of exchange now more than 10 years old, it’s finally working its way into the mainstream. Cryptocurrency is now being actively traded 24/7 and, according to data from Skynova, more than 30% of U.S. small businesses now accept it. 

But is cryptocurrency right for your small business? There are several serious considerations to take into account – both technical and pragmatic.

Why consider using crypto?

More than 2,300 US businesses accept bitcoin, according to one estimate from late 2020, and that doesn’t include bitcoin ATMs. An increasing number of companies worldwide are using bitcoin and other digital assets for a host of investment, operational, and transactional purposes.

The use of crypto for conducting business presents a host of opportunities and challenges. As with any frontier, there are both unknown dangers and strong incentives. That’s why companies venturing to use crypto in their businesses should have two things: a clear understanding of why they are undertaking that action and a list of the many questions they should consider.

Accepting Cryptocurrency Payments

According to a January 2020 HSB nationwide survey, 36% of small businesses accept cryptocurrency payments.

If you’re among the enterprises left out of the crypto payments bracket, it’s probably time to start figuring out how to accept crypto payments to keep pace with the competition.

Among the small business owners surveyed, 50% cited the adoption of crypto by major payment processors and large innovative companies as a motivator for accepting crypto payments. In the survey, 35% of the respondents said that they chose to go to crypto to keep up with competition and customer demands. 

Here are a few companies that can help you accept Bitcoin and other cryptocurrency payments.

BitPay

One of the largest companies in the world enabling businesses to accept cryptocurrencies as payment is Atlanta-based BitPay.

The company offers various tools to make accepting crypto payments simple, including hosted checkout, payment buttons, invoicing, and Quickbooks and Shopify integrations. Payments can be made by customers online, by email, and in person.

CoinBase Commerce

Silicon Valley-based CoinBase might best be known as one of the top marketplaces for buying and selling Bitcoin and other cryptocurrencies. Still, it also has a Commerce product that makes it easier for businesses to accept digital payments.

The company has the essential tools every company that wants to accept crypto payments needs, including hosted checkout pages, payment buttons, invoicing, and e-commerce integrations such as Shopify and WooCommerce.

What can crypto do for your company?

To spark your company’s thinking about crypto, here are some of the rationales behind why some companies are currently using crypto:

Crypto may provide access to new demographic groups. Users often represent a more cutting-edge clientele that values transparency in their transactions. One recent study found that up to 40% of customers who pay with crypto are new customers of the company, and their purchase amounts are twice those of credit card users.

Introducing crypto now may help spur internal awareness in your company about this new technology. It also may help position the company in this important emerging space for a future that could include central bank digital currencies.

Crypto could enable access to new capital and liquidity pools through traditional investments that have been tokenized, as well as to new asset classes.

Other cryptocurrency payment options

Bitcoin may be the best-known cryptocurrency on the market, but it’s certainly not the only one. If you’re going to accept Bitcoin in your small business, you might want to add these other cryptocurrencies to the list of payment options.

Ethereum: According to ethereum.org, Ethereum is the “community-run technology” behind the cryptocurrency Ether (ETH). It’s currently the second-largest cryptocurrency by market capitalization (preceded only by Bitcoin).

 Litecoin: Litecoin (LTC) is very similar to Bitcoin, though presently it costs a great deal less. One benefit of Litecoin is its speed. Litecoin is mined faster than Bitcoin and has a quicker transaction throughput.

Bitcoin Cash: Bitcoin Cash is another spin-off of Bitcoin, created several years later. Like Litecoin, Bitcoin Cash processes transactions quicker than the Bitcoin network. Because of this, transaction processing fees tend to be lower than those associated with Bitcoin.

Cardano: Cardano (ADA) is another new cryptocurrency, launched in 2017. Despite being the fifth-largest cryptocurrency by market capitalization, its value is currently much less than Bitcoin. On August 21, 2021, one Bitcoin was worth $49,250.50 U.S. dollars, while one Cardano was worth $2.46. 

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