Many Lakewood business owners probably know the struggle of keeping up with the latest trends and innovations to attract new customers. One such hurdle comes from varying payment options and the rising costs associated with traditional banking methods. Naturally, exploring emerging payment options is the next logical step, which is why many Lakewood businesses have begun considering crypto payments. While many might think of this as a means of keeping up with tech trends, there are actually a few (very valid and beneficial) reasons why this is a smart business move.
The Allure of Lower Fees and Faster Transactions
Cryptocurrency generally appeals to investors for the same reason it would to business owners: lower fees, instant settlements, and no third party. Even more, businesses and investors can explore emerging currencies by evaluating market demand, regulatory fit, utility, and security. This makes it easier to be ahead of the curve by investing in new Coinbase listings like Bitcoin Hyper (HYPER), Maxi Doge (MAXI), and Snorter Bot (SNORT) which are known with strong market demand and market potential (high volume/cap), diverse use cases, excellent tokenomicis, strong community support, established development teams, and full legal compliance. When it comes to payment options, not only does it protect users (and businesses), but it also prevents manipulation. However, it helps to understand the pain points that come with owning a business to gain better insight into how each of these positives is beneficial in the long term.
For one, traditional payment systems, while convenient, can cost small businesses an arm and a leg to maintain. Owners must consider credit card processing fees, account for chargebacks, and wait an extremely long time for funds to reflect. In comparison, crypto payments are peer-to-peer, which, simply put, would be equivalent to paying with cash, wherein a third party (a bank) cannot take a cut. In turn, this can save businesses a significant amount of overhead costs that would generally go to their respective banks. Another point of contention is how the lack of instant settlement with traditional banks negatively impacts a business’s cash flow.
This is especially true for larger sums of money brought in through international or offshore dealings, which can take days (or weeks) to reflect. With funds constantly needing to be reallocated, a more efficient way to manage finances is needed. Crypto payment options eliminate this issue entirely by offering their users high-speed transactions (even for large sums) that reflect within a few minutes at most. This means Lakewood businesses potentially make a bigger profit while getting quicker access to their funds for payroll, inventory, and other business-related costs.
Expanding the Customer Base: Reaching the Crypto-Savvy
Globally, there has been a large influx of individuals who have invested in cryptocurrencies and opt for crypto payment options where possible. Naturally, the same is true in smaller cities such as Lakewood, where more and more residents either own or have invested in blockchain assets. While the exact number of holders is unclear, it is safe to assume that Lakewood businesses adopting crypto payments would be appealing to a whole new audience. Although many Lakewood businesses are still hesitant to take the leap, the ones that do will tap into a new, tech-forward demographic that appreciates efficiency.
Additionally, these businesses would also be considered innovators for accepting crypto payments, benefiting from the early adopter advantage. Even better, they will also gain a competitive edge over other local companies that might not prioritize efficiency and growth. This is true for the number of customers such a change would attract, alongside the internal and financial benefits. For businesses that solely function from physical locations, this might prove a bit more difficult when attracting customers from outside of Lakewood. However, for those who have online stores and/or accept digital payment methods, it opens up a world of opportunity equating to growth and positive attention.
Security and Transparency: Beyond the Buzzwords
Another benefit Lakewood businesses would be privy to is the heightened security that comes with crypto payments. In its simplest form, any crypto transaction is recorded on a blockchain (think of this as a shared digital ledger), which is connected to a peer-to-peer network. Essentially, this means that an exact record of each transaction is always available, mitigating the risk of any third-party interceptors. Business owners and customers alike have access to this information, making for financial transparency and security. Additionally, this transparency eliminates the potential of fraudulent charges, and the irreversible nature of crypto payments means no more chargebacks.
Crypto payments would also be great for protecting consumer data, as there is no need for sensitive information to be entered into any online store. Instead, users can log in with their respective crypto wallets, which are very secure and do not require anything beyond their wallet ID for transactions. Unfortunately, cyber threats and data breaches are a very real part of the modern world, which is why customer data needs to be protected. As such, customers will trust a particular company more and be more willing to be a repeat client (or even recommend new customers). Safety and reliability are the top priorities of many businesses and customers, and crypto payments guarantee this.
Challenges Lakewood Businesses Need to Consider
While accepting crypto payments has an array of benefits, Lakewood businesses still need to keep a few things in mind. Unlike larger companies such as Microsoft or luxury brands like Gucci that now accept crypto payments, a local Lakewood bakery or boutique will have far more cost-related factors to consider. For one, integrating a new payment system into the current POS (Point-of-Sales) system can prove costly. While it will be beneficial in the long run, adapting to this new tech can have a learning curve, especially if existing employees are not already tech-savvy. As a result, Lakewood businesses could end up spending a significant amount on training or hiring new staff.
The same can be said for customers who are not familiar with cryptocurrency or who have never been able to pay with their blockchain assets before. Despite quite a few dedicated payment platforms available that will make this process easy for customers, it can still prove a hurdle. Beyond customer education, there is also the concern of the regulatory landscape surrounding cryptocurrencies. There are quite a few businesses (beyond the Lakewood area) concerned about whether accepting crypto payments is legal. As such, keeping an eye on the latest legislation and amendments on crypto is crucial if this is a step you think your business might take.
The “How-To”: Getting Started with Crypto Payments
Those interested in integrating crypto payment systems into their businesses can start by looking at reputable third-party crypto payment processors. BitPay and Coinbase Commerce are great picks as they simplify the process, speed up transactions, and do so without endorsing. Additionally, most businesses will need a digital wallet, so taking the necessary steps to set one up is crucial to receive funds seamlessly. Finally, starting small is equally as crucial, including accepting widely recognized tokens (Bitcoin, Ethereum) or only accepting crypto payments for a particular service.