In the US, roughly 2,352 businesses accept Bitcoin – but we’re going much further than simply allowing consumers to pay using Bitcoin. Now, we’re thinking about ways brands can use cryptocurrencies and blockchain technology to streamline processes and…well…be better.
It’s no secret that traditional systems are flawed – are crypto and blockchain the answer? Let’s explore.
Building Customer Loyalty with Cryptocurrency
Customer loyalty. Do you know how easy it is? Well, the premise is quite simple – give the customers what they want. But what they want isn’t simple – it’s ever-changing. Still, the facts about why you should focus on customer loyalty speak for themselves. 80% of a company’s future profits will come from loyal customers.
And cryptocurrencies could keep them loyal. The Ethereum Price and Bitcoin are high, but many people have small shares in the coins, which they could use to pay for products or services.
Or, you could reward loyal customers with Ethereum or Bitcoin instead of discounts.
Integrating crypto can work. It can align businesses with the growing digital economy.
Cryptocurrency for Customer Payments
Source: sygnum.com
As we’ve said, cryptocurrencies can increase customer loyalty, but they can also open your business up to a market of people who prefer to pay using decentralized payment methods. There might be 2.35 thousand businesses accepting Bitcoin in the US, but there are around 15 thousand accepting it globally. There’s a major global crypto adoption movement.
The adoption of cryptocurrency for customer payments reflects a strategic shift in business operations. The significantly lower transaction fees, often around 1%, are the savings businesses should be looking to make – traditional banking systems charge high percentages for transaction fees.
The security aspect of crypto transactions is also a positive. The reduced need for sensitive personal data will appeal to consumers. This growing trend aligns with the consumer shift towards digital and mobile-first solutions.
The $1 million daily expenditure in America using Bitcoin indicates the rising acceptance.
Utilizing Blockchain Technology
Blockchain, the technology behind cryptocurrencies, is revolutionizing various sectors. In supply chain management, blockchain offers real-time tracking of shipments, reducing errors and costs.
For instance, businesses using blockchain for supply chain management have reported a reduction in shipping-related errors and costs by over 30%. In healthcare, blockchain secures patient data, ensuring privacy and reducing the risk of data breaches.
Enabling B2B Trading with Cryptocurrency
The use of cryptocurrency in B2B trading is gaining momentum. Cryptocurrency transactions offer faster settlement times and lower transaction fees compared to traditional banking systems, making them ideal for businesses engaging in B2B trading. This efficiency is particularly beneficial in international trade, where brands can circumvent the complex and costly traditional banking system.
Crypto Payments
Source: usemultiplier.com
Businesses that accept cryptocurrency payments gain a competitive edge and position themselves as innovative and forward-thinking. This move appeals to a growing demographic that values technology, privacy, and efficiency. Crypto payments offer rapid transaction times, often completed in minutes, which is a critical factor for businesses that operate in dynamic and fast-paced environments.
The enhanced security of crypto transactions, underpinned by complex cryptographic protocols, greatly reduces the risks associated with data breaches and financial fraud, offering peace of mind to the business and its customers.
By accepting cryptocurrencies, businesses tap into a global market, as these digital currencies aren’t bound by national borders or regulatory constraints of traditional banking systems. This global reach is particularly beneficial for online retailers and service providers, enabling them to cater to an international customer base effortlessly.
Promoting Financial Inclusion
Cryptocurrencies are instrumental in bridging the financial divide. You might be surprised to know that a whopping 5.9 million people are unbanked. Some of those will prefer decentralized payment methods. offering an accessible alternative to traditional banking systems.
And that’s not considering the rest of the world. An estimated 1.4 billion adults worldwide are excluded from centralized finance.
By incorporating crypto payments, businesses can reach underserved populations – something that not all brands are doing. You could call it an untapped market of billions of people.
Cryptocurrencies, with their minimal entry barriers, allow individuals to engage in financial transactions without needing bank accounts or credit history – something that sometimes holds people back.
Major Companies Leading the Way
Source: utimaco.com
Major companies like Microsoft, Tesla, and PayPal have already embraced cryptocurrency payments. Microsoft, for example, has been accepting Bitcoin for its products and services since 2014. Long before this trend of wider crypto adoption started.
Tesla’s acceptance of Bitcoin and Dogecoin marks a significant step for the automotive industry. But Elon Musk was probably always going to do that – he’s the Dogecoin godfather. PayPal’s integration of crypto payments was more of a surprise – but a big brand like this making it easier for consumers to use digital currencies for everyday transactions was massive.
And we bet you’ve seen the Bitcoin ATMs dotted around. Crypto and blockchain technology are everywhere.
Integrating Crypto Payments into Business Operations
Integrating cryptocurrency payments into existing business operations is becoming increasingly straightforward. Payment processors like Bitpay, Coinbase Commerce, and B2BinPay are worth exploring. They offer businesses the tools to accept, process, and manage crypto payments efficiently. It’s as easy as adding it as a payment method like you would with PayPal or Credit Cards.
But instead, you’ll find that features like invoicing and refunding are more seamless – blockchain technology works in the favour of the people.
With major corporations leading the way, integrating cryptocurrency into business operations is becoming increasingly mainstream. They’re offering a competitive edge, enhanced security, and an avenue for financial inclusion. It’s something all businesses should be thinking about in 2024.
