Over 15,000 businesses around the world use Bitcoin. Other cryptos are also gaining traction as payment in the commerce scene. In the USA alone, there are around 2,400 businesses that are currently using crypto payment, especially Bitcoin payments. The inspiring popularity of crypto in the commerce sphere signals a disruptive change on the radar- more of a revolution- and for better. In fact, the cryptocurrency industry has not only introduced a new payment method in the business landscape but has also spearheaded new avenues of business as well- such as trading and selling cryptocurrency or lending cryptocurrency. Check out more about Multibank.io.
There are multiple ways by which crypto is pioneering a new-age revolution in the business landscape. The post below offers a brief on the various avenues that prove that crypto is doubling up as a transformative force for businesses around the world.
Introduction of new payment mode
As mentioned in the above discussion, the crypto industry has provided businesses with a new payment mode. Versatility in payment modes or currency adds flexibility to your company’s payment system- one of the major factors that your prospective customers will look for while searching for a compatible business or service. In other words, the added payment mode as facilitated by crypto will help your business to welcome more numbers of customers – especially those who mostly prefer to pay through crypto these days.
Moreover, the value of a crypto coin is always universal. Thus, there is no need to go through the hassle of converting crypto payments received from foreign clients into local money.
Ability to tap into new set of customer niche
Taking cue from the above pointer, it can be safely claimed that use of crypto allows businesses to tap into new segments of the customer base. The booming state of the crypto industry has instilled confidence about a promising future of the industry among many crypto investors. These consumers, especially the millennials, prefer to use crypto for payment to businesses. And as crypto can be used almost anywhere, ranging from booking flights to buying pizza, crypto-enthusiast consumers are getting increasingly inclined to crypto payments.
A study conducted recently had reported that around 40 percent of consumers who prefer crypto payment are actually new clients of a firm. In fact, the study has also revealed that the volume of their purchase was double the amount of those executed through credit cards
A major reason why smart customers today prefer crypto-based transactions is super-fast transactions and that too at highly economical rates. Moreover, crypto-based payments eliminate the risks of illicit chargebacks.
Ability to tap into global market
While corporates have the resources to go global, SMBs are generally apprehensive of venturing into foreign markets. And they have every reason to be apprehensive, until now. Major problem for SMBs when it came to chartering into foreign waters was limited monetary resources. International transactions with fiat tend to be extremely pricey – a key reason why most of the small businesses can’t work with foreign vendors and foreign clients.
Low cost international transaction
But crypto (thanks to its underlying blockchain technology) resolves the problem by cutting down on the costs of international transactions. Crypto payment transactions, either domestic or international, do not involve any kind of middlemen costs and follow a direct P2P approach. Thus, international transactions with crypto come at a fraction of cost of international transactions with fiat facilitating a rather economical way to charter into foreign markets, especially for SMBs.
Immediate payment transfer
International transactions with fiat are not only exorbitantly priced but are also extremely time-consuming. For decades, this particular glitch has been another major setback for several businesses aspiring to expand into the global market. Crypto resolves the problem with its underlying decentralized blockchain technology.
Built upon blockchain infrastructure, cryptocurrencies allow almost immediate transfer of payments, both domestic and international. Speedy payment processing further facilitates faster processing of business operations, especially those that otherwise get delayed or stuck due to delay in access to funds from clients or delay in access to raw materials from vendors.
Put simply, the crypto industry holds the power to elevate the business landscape.
New business avenues and foundations
The crypto industry has also introduced novel business avenues and foundations for the commercial landscape.
Crypto investors can engage in trading and selling cryptocurrency for a handy second-income.
There are various platforms where crypto holders can go for buying and selling cryptocurrency, ranging from crypto exchanges, OTC crypto trading platforms, and P2P crypto trading marketplaces.
Crypto staking refers to a process that allows crypto holders to enjoy easy passive business by just staking the coins. The word “staking” in crypto refers to a process where you will have to keep your crypto locked-in for a certain period of time. PoS blockchains use the staking process for validating every batch of new blocks before linking them to their chain. They resort to crypto holders for staking with the latter’s coins – and in return, reward them with new coins.
This is also another way to have a passive business for crypto holders.
Crypto lending platforms borrow crypto funds from crypto holders which they utilize to provide liquidity to crypto exchanges. In return, they reward the crypto lenders with a sizable rate of interest.
Foundation of crypto-related businesses
Another major contribution of cryptocurrency into the business landscape is the introduction of a novel set of businesses aka crypto-related businesses.
One, there are cryptocurrency companies- visionary tech companies that develop cryptocurrency and reward the crypto world with a new digital asset.
Then, you have the crypto exchanges. These are online trading platforms that are especially designed for crypto-related trading activities.
The other one is crypto lending platforms. These lending businesses are especially structured for crypto lending activities.
The foundation of the crypto industry has been a blessing for the business landscape. Yes, naysayers will talk about the extreme volatility of crypto and the mammoth losses resulting from it. But, the crypto industry is not just about a “volatile market”. Rather, it introduces a futuristic industry based on a revolutionary technology that holds the potential to redefine the existing business sector all across the world, and for better.