Accept Bitcoin for your business just like Tesla: Report
Tesla’s temporary embrace of Bitcoin (BTC) as a payment method for its products was possibly one of the catalysts that pushed asset prices to record highs last year and put the spotlight on crypto-legitimacy – especially in the payment area. In addition, crypto enthusiasts had praised the fact that Tesla even set up its own node to accept BTC and stated that they would not exchange the stock for fiat, which indicated high confidence in the crypto’s long-term prospects.
But despite withdrawing and ceasing to accept Bitcoin a few months later due to climate concerns, Tesla was just a cog in the adoption machine in 2021. Starbucks, Whole Foods and AMC Entertainment were just some of the other jugglers who made their entrance in crypto. last year. What is clear, however, is that headlines play favorites to famous names. For other companies that want to jump on the trend, it’s a question of how to get started.
Cointelegraph Research’s latest report provides answers. The 35-page article goes over the booming trend in cryptocurrency acceptance and practical ways any business can integrate cryptocurrencies into its business. In addition, the report also looks at the future of crypto in payments, especially in terms of regulation, and much more.
Why should companies accept crypto?
Cryptocurrencies are believed to be in a phase of hyperadoption, and the 178% increase in the global crypto population is further evidence of this. For companies, meeting this growing demographic will mean expanding their potential customer base. Receiving payments in crypto is also much cheaper compared to TradFi methods, which can improve a company’s bottom line. Sellers can save up to 3.5% in fees – or more – if the payment method is in crypto instead of credit or debit cards.
Download the full report here, complete with charts and infographics
Refunds are also another disadvantage of TradFi payment methods, costing e-commerce merchants $ 125 billion in 2021. Refunds are a type of payment reversal in which the seller returns the money to the customer due to a transaction dispute or if the customer returns the purchased product. However, chargebacks can also be outright fraudulent, as some customers may dispute a transaction to secure a refund even though they have no product or delivery issues.
The process of accepting crypto
Whether a company sets up its own node like Tesla or chooses a payment processor to simplify the transaction, the way to do it is more or less the same, but varies under the hood. For example, certain payment processors may allow a seller to receive crypto, but will also enable real-time settlement in fiat. This effectively eliminates price volatility while giving the seller the flexibility to accept digital assets. The disadvantage is, of course, that it exposes the company to the often extensive procedures in TradFi.
The other side of this is accepting the actual cryptoactive wholeheartedly, and there are various reasons to do so. Long-term price increases are the most common argument, but companies can also hold cryptocurrencies for rainy situations. Sellers can also earn extra revenue by using the available options within the crypto area, such as locking the crypto in DeFi protocols to earn returns from efforts or lending.
Ultimately, the deciding factor on the channel for receiving cryptocurrencies will depend on the seller. The factor that needs to be considered is whether the goal is to keep cryptocurrencies or take advantage of the growing cryptocurrency base – or maybe even both.
Download the full report with more detailed informationcomplete with charts and infographics at Cointelegraph Research Terminal.
This article is for informational purposes only and does not represent an investment advice or an investment analysis or an invitation to buy or sell financial instruments. Specifically, the document does not serve as a substitute for individual investments or other advice.
