According to statistics, about 54% of businesses currently use cryptocurrency in
different ways. Today, it has become an important part of businesses that use
it for different reasons, such as securing transactions and facilitating
payments. They can also be used for cross-border payments making them an ideal
payment for global companies targeting global markets and market share.
There are limited dangers and strong incentives for
businesses to adopt cryptocurrencies locally and globally. This makes it ideal
for industries such as finance, technology, travel, etc. As popularity
increases, there is a need to understand the factors fueling the uptake and the
benefits that comes with it.
How businesses are currently using cryptocurrency
There are many ways businesses are currently using cryptocurrency, and here are some of
them.
Payments
Businesses are currently using cryptocurrency as a means of
payment to facilitate transactions such as B2B and B2C. They use cryptocurrency
to facilitate payments between suppliers and third-party contractors within the
business. Today, most businesses list cryptocurrency as an accepted means of
purchasing goods in bulk.
Investment strategy
Most investment businesses are currently concerned about
asset and investment diversification. Cryptocurrency has become an ideal
diversification strategy for companies to invest in cryptocurrencies such as
Bitcoin. Companies are presently using platforms such as Finixio AI to buy cryptocurrency to diversify
their asset base with safer and fast-growing crypto assets such as coins,
tokens, and NFTs.
Fraud prevention
Businesses currently face serious fraud issues mostly
orchestrated by customers and hackers interested in stealing customer data.
Fraud faces different companies, especially in brick and mortar, currently
changing to the online and e-commerce model. Fraudsters are currently involved
in canceling and reversing payments once they receive the goods or checkout the
order. The canceling and reversal mainly affect cash and credit cards, and
businesses can suffer considerable and long-term losses due to such actions.
The nature of cryptocurrency transactions makes it difficult
to cancel or reverse the transaction; hence businesses can rely on it to
prevent fraud. Once the customers make the payments, they can only reverse them
if they contact the business for refunds, preventing any fraudulent issues.
Protecting customer privacy
Due to the increasing hacking and cybersecurity issues,
customer privacy remains critical for many businesses. The targeted private
information includes credit and debit card details, customer addresses, and
other transactions. Most online payments also leave digital, transaction, and
history footprints that hackers can target.
Cryptocurrencies do not leave any footprints for hackers to
target. In 2021, the cyberattacks targeting customer data increased by 30% hence the need to protect the customers and their provided data.
Cryptocurrency does not require personal details that hackers can target.
Unlike other online payment methods, cryptocurrencies have security protocols such as private keys to protect cryptocurrency addresses and the
digital wallet. Credit and debit card payments rely on security measures such
as encryptions and firewalls, which modern hacking tools can easily surpass.
Why are more businesses using cryptocurrency?
The cryptocurrency wave continues to spread throughout
businesses as more companies adopt it as a means of payment and other
blockchain technologies to protect customer privacy and prevent fraud. Here are
some reasons why companies are currently adopting cryptocurrency.
Targeting global reach
Cryptocurrency is an accepted global means of trade and
transaction in all countries. It is an ideal way for businesses to enter new
markets with limited or no credit and debit card transaction capabilities.
Therefore, it is an ideal strategy for businesses aiming for global markets.
Increased sales
Accepting cryptocurrency transactions and payment is an
ideal strategy for companies to target and attract a new market segment: crypto
users and lovers. The global reach and capabilities make it easier for
businesses to increase their global sales, market shares, and revenues.
Accepting cryptocurrency payments means the business can easily accept bulk
payments without going through bank transactions beyond the debit and credit
card capabilities.
Business Reputation
Promoting a brand can be expensive and involves different
strategies; however, cryptocurrency offers a cheaper option to help companies
rebrand. A business accepting cryptocurrency payments is diverse, global,
competent, and favorable for customers looking for different means of payment.
Businesses can use it as a brand reputation promotion by listing their
versatile payments and attracting teens mainly moved by technology and digital
transactions.
Transaction speeds and costs
Cryptocurrency payments are fast and efficient compared to
other payment methods. In other payment methods, the intermediaries are likely
to influence the transaction process making it longer and charging transaction
fees. Eventually, the payment methods will be slower, longer, and more
expensive. Cryptocurrency solves these challenges since there are no middlemen,
and the moment someone sends the payment, you can get them within 5 to 30
minutes, depending on the amount.
Unlike other payments, cryptocurrencies are safe from
foreign exchange volatility issues. Other payments face these challenges;
hence, they receive less of the transacted amount, especially for global sales,
whenever the exchange rates exchange. Due to its stability, you can charge
standard prices for all the products in every country, attracting more
customers. The costs will only vary due to shipping costs, especially for
international trade.
The future of cryptocurrency and businesses
Currently, cryptocurrency is applicable in nearly all industries and continues to gain popularity in
various areas. In the future, it will likely be a part of all companies due to
the diverse capabilities such as security measures, buffer against market
volatility, market payments, and strategy to increase sales. These capabilities
make it lucrative for any business, especially those aiming to promote their
brands.
Conclusion
The popularity of cryptocurrency in businesses is driven by the increasing ways businesses can use it and the anticipated benefits. There are different reasons a business would adopt cryptocurrencies, such as payments, security measures, access to new markets, and increasing sales and revenue. It offers a promising future to all businesses making a necessary strategy for every business to adopt.
