Bitcoin, the first digital currency in existence and the cryptographic project that started all the craze, sees the world slowly heading toward another currency chapter – that of the digital one. This payment method has started gaining traction in the business world, whether we talk about small but future-oriented enterprises or astronomical, worldwide-known companies.
Remittance circulation, international transactions, reduced transaction fees, on-spot settlement, and a higher level of security are downright every business’ ultimate dream, and Binance data shows that they’re topping the list of reasons why Bitcoin transactions take place. Steadily, these undertakings become non-negotiables for enterprises looking to remain relevant down the road. However, accomplishing all right away to keep pace with customers’ demands used to be the sci-fi business’ dream. All these until Bitcoin broke into the market, and quick-on-the-uptake companies like Overstock and Microsoft started supporting Bitcoin payments ten years ago.
Now, the companies above take a broader range of crypto coins, like LTC and ETH, making strides in the blockchain field. Starbucks, KFC, PayPal, Dell, Twitch, Shopify, ExpressVPN, and more legendary names are now exchanging services for customers’ digital money. And even if some gigantic companies missed the start and cannot be enumerated among the early adopters, they are warming up to decentralized payments. Blue-chip company Ferrari, for instance, has incorporated crypto among their payment methods in the U.S. and looks to do the same for European countries. Meanwhile, enterprises in the entertainment, travel, hospitality, and other industries are paving the ground for reaping the benefits of these implementations in the future.
So, what are all these advantages and perks that companies get out of taking Bitcoin as a payment? Are they worth the effort when the bottom line is drawn.
Faster transaction speed
Bitcoin payments finalize way rapider compared to centralized and conventional techniques, which is even more efficient when it comes to international transactions that are generally concluded within days when employing the traditional banking system.
The average confirmation period in Bitcoin transactions at merchants generally takes from half an hour to a little over an hour, and their confirmation scores a full payment registered by the business. Such efficiency prompts the merchant to pack and ship the offerings faster, ensuring the customer enjoys the perks of quicker delivery through the technology behind Bitcoin.
Fewer transaction fees
Bitcoin transactions settle rapidly and are cheaper compared to conventional payment means accustoming the larger part of the world, specifically as it is no longer necessary to have an intermediary verify and approve the transactions, taking their fair share of revenue during the process. The more mediators are involved in the money transfer circuit, the smaller the profit gained by the business, which, more times than not, translates to higher purchasing prices for the customers.
Bitcoin enables businesses to make savings long-term by circumventing processing dees and making it easier for merchants to comply with regulations, convert BTC or other cryptocurrency into fiat money, and a plethora of different aspects, making the nerve-wracking red tape that many are put off by.
However, fewer transaction fees don’t necessarily translate to a profitable bottom line, as tax implications rule and can take a significant chunk of the revenue, as crypto is treated as “property” for tax purposes by the IRS. A sound idea for businesses looking to get the best of both worlds is to establish a minimum dollar value that makes a customer eligible to purchase with crypto.
Eliminated chargebacks
As crypto transactions occur on a distributed ledger, and once they are final, there’s no way to modify or challenge them. Hence, businesses no longer have to struggle with money- and time-consuming chargebacks. All BTC processes are completed, providing enterprises with a new way of saving a few dollars, as no customer can dispute a transaction.
Refunds are costly in the conventional financial system and some customers are confirming payments and taking orders precisely with the purpose of asking for returns in order to get stuff for free. Luckily, this stressor can no longer be a real deal for innovatory businesses taking action to prevent chargeback frauds, as well as the general costs of chargebacks.
Streamlined international transactions
Despite the differences in credit card laws and regulations in each country, Bitcoin doesn’t bring about currency exchange or foreign transaction taxes. SMBs can approve international transactions without bumping into barriers, limitations, or extra expenses.
Bitcoin is slowly lifting existing barriers and invisible borders, streamlining international payments and cutting the transaction finalization time from hours to seconds. Along with tighter processing fees from the payment processor employed, the elimination of currency translation can result in significant savings for the beneficiary company.
Ferrari – the newest example of why more blue-chip giants should open up to Bitcoin
Ferrari has recently started allowing crypto payments in the U.S., and now, European customers sitting well and looking to purchase the brand’s vehicles while enjoying the same transactional benefits are expecting a similar regime. According to the statement of the commercial and marketing chief of Ferrari for Reuters, wealthy customers familiar with crypto payments are looking for this opportunity in their brand’s strategy. They could purchase from the brand through this payment method starting next year, as the company’s planning on introducing this feature by the first quarter of 2024. According to the company, there will be no changes in prices, fees, or surcharges for those opting to seal the deal with crypto. One of the reasons for this stableness is that the crypto payment processor exchanges the Bitcoin into fiat money right after the payment is received, preventing all the participants from direct crypto management and the consequent fluctuations that would naturally result from such a transaction.
As per reps at Ferrari, the payment processor will take only legitimate digital currencies that weren’t used in criminal activity, crime proceeds, and tax evasion processes.
Ending remarks
Leading, colossal companies sitting on fortunes have one thing to cleave to, and that is innovation, for they themselves have been building kingdoms on this premise. Innovation in the financial system has long been disrupted as Bitcoin has stolen the show and risen to become as reliable an exchange tool as conventional currencies, providing new features and possibilities as a plus.
The dawn of decentralized, cryptographic payments is here, and Bitcoin is the pioneer!
