Crypto is a form of digital currency. Through this currency, transactions are verified and recorded by a decentralized system using cryptography. There are approximately 300 million crypto users around the world, and approximately 18,000 businesses utilize the currency worldwide.
Today we’re going to focus on the relationship between retail businesses and crypto. We’ll dig a bit deeper into what a vendor should know about crypto.
Benefits
When it comes to a retail business accepting crypto into its ranks, there are a variety of benefits that come with it. Normally people have the option of paying through such digital payment providers as PayPal, Venmo, and CashApp. Crypto (Blockchain) is just another form of currency that can be utilized by a retail business, say like a grocery store. When your purchase items from a grocery store, some places offer the option to utilize retail software like PayPal to pay for your items. Crypto can just as easily be accessed to help you purchase everyday items.
The accessibility of cryptocurrency through retail software is one of many benefits for why other retail vendors should invest in this currency. Crypto also provides lower transaction fees. Normally retail businesses that accept only credit cards often face fees of around 25 cents for each card swipe. Due to the lack of a central intermediary, this helps to lower any associated fees for crypto transactions. Cryptocurrency also helps to protect vendors from fraudulent chargebacks. These transactions are final because there isn’t a third party to reverse charges.
Lastly, when you utilize crypto, you’re catering to a customer’s preference. As a vendor, you want to provide the best customer service possible. That’s you’re essential function as a business. When you accept this form of currency you are providing the consumer an additional way to pay. You also are providing an additional layer of protection for your customer as you process payments. Adopting cryptocurrency is a great sale solution for your business.
Risks
There are also risks with adopting cryptocurrency as a vendor. Though the new form of currency is catching on amongst many customers, it helps to know what the risks are before accepting this currency into your business. Just as you may weigh the risks of Cash App vs Robinhood you can do the same for balancing out the benefits and risks of cryptocurrency. To begin with, there are technical barriers when it comes to accepting this form of currency.
As a retail business when you accept this currency, you have to set up a digital wallet on digital currency exchange. This can potentially become technically prohibitive for a small business owner who is unfamiliar with such technology. In such a case, this crypto form of currency does not become a retail management solution for your small business.
This form of currency is also volatile. The price volatility makes the price value extremely unpredictable. In addition to this, though security is often better for those utilizing cryptocurrency, it’s still not 100 percent safe. Lastly, there’s not much regulation over it. Once this happens, small business owners will have to adapt to whatever regulations might come down the line.
Future
Cryptocurrency show’s no signs of slow down in its ascent. Crypto is reported to change how money is circulated around the world. In addition to this more government bodies are taking steps to regulate this new form of currency. Some people even predict that cryptocurrencies can possibly disrupt traditional finance since it allows for easy payment transfers across borders with little to no cost, or delay. All in all, it seems that cryptocurrency for retail business is something that many vendors will have to become accustomed to.
