With cryptocurrencies such as bitcoin becoming more mainstream, an increasing number of small businesses are wondering if they should accept this alternative form of payment. Here are six reasons why small businesses think accepting cryptocurrency is a good idea.

A cryptocurrency – often simply called ‘crypto’ – is a digital currency that is exchanged through a computer network. It doesn’t rely on banks, governments or other authorities to maintain it, and because it is digital, crypto is virtually impossible to counterfeit or commit fraud with. These are all reasons why cryptocurrencies have surged in popularity so significantly in recent years.

The first version of a cryptocurrency was created in 1983, when an anonymous cryptographic electronic money form called ecash was sent. Since then, a range of crypto-type currencies were created, but the first one to start gaining wider recognition was bitcoin in 2009.

The creators behind bitcoin are highly secretive, and Satoshi Nakamoto is the name used by the so-called pseudonymous person or people who developed bitcoin. This form of crypto has gained global acclaim and is now widely used. Satoshi Nakamoto owns somewhere up to 1.1 million bitcoin, which has a rough US dollar equivalent of $73 billion. This valuation would make Satoshi Nakamoto the 15th richest person in the world.

The mysterious beginnings of cryptocurrencies such as bitcoin can distract people away from the benefits of the everyday use of crypto. However, a third of small businesses in the United States now accept cryptocurrencies as payment, with this number growing all the time. Here’s why small businesses are catching on to the fact that accepting crypto could be a good thing for business.

1. More Customers

A key rule of business is to make things as easy as possible for customers to pay you. And since more and more customers own cryptocurrencies such as bitcoin, offering this as a payment option makes good business sense. Bitcoin uses blockchain technology to keep transactions secure. Customers can buy cryptocurrencies such as bitcoin using any currency, and then keep their crypto in electronic wallet systems. This electronic wallet can then be used when customers pay for items on a website that accepts crypto.

2. You Can Convert Crypto Back

Many businesses worry about accepting cryptocurrencies because they don’t necessarily want to have a business crypto account. While there could be benefits to having a business crypto electronic wallet of your own, if you’re not totally comfortable with this, you also have the option of converting crypto payments you receive into a currency of your choice. This enables you to transfer the money into your traditional business bank account.

3. Lower Fees

All businesses that accept payments by credit card have to pay certain fees. There are fees charged by credit card providers, and also fees charged by companies who supply you with contactless payment terminals. These can cut into business profits, and for small businesses, this can be a big deal. Across the board, cryptocurrencies have lower fees associated with them, so small businesses can end up being better off by accepting them.

4. Greater Security

Research shows that most businesses have been affected by fraud at some point. This can be a huge blow to any business, and small businesses worry about this more because they tend to have fewer reserves in the bank. Fraud is usually committed due to inefficiencies in credit card and banking systems. With crypto, there are several in-built characteristics that mean fraud is less likely to occur. The blockchain technology means only customers with the funds in place can make transactions. The nature of crypto also means that there are no ‘middle men’ who can prevent payments from going through. The wholly digital nature of cryptocurrencies also means that counterfeit transactions are almost impossible too.

5. International Reach

One important aspect of cryptocurrency for small businesses is that it opens up international markets without any negative costly impacts. Most businesses would love to reach international customers, but issues with currency exchange and fluctuating values of different currencies can be difficult to manage. In addition, charges placed on both businesses and customers to make and receive international payments can make the transaction too costly to proceed with. The truly international nature of cryptocurrencies such as bitcoin mean that transactions can be made without any financial impact on businesses and customers. And the fact that businesses can convert crypto into their preferred currency on receipt often makes it a no-brainer.

6. Instant Payment

Although bank payments are getting faster all the time, this still very much depends on the particular banks that are involved. This means that when businesses receive payments, they may not actually see the payment arrive for several days. However, crypto payments are almost always instantaneous, so you can see the money as each transaction is made. This gives small businesses great peace of mind, and provides greater financial security.