The Advantages of Accepting Bitcoin Payments For Your Business

Since it first went live in 2009, Bitcoin has become one of the most talked about technologies of the past few years. The pioneering digital currency is now widely used by investors and consumers worldwide, serving as both a store of value and a means to make fast and instant online bitcoin payments.

Bitcoin price has attracted a lot of attention from media outlets, but its function as an online payment processing service is far more interesting to business owners.

What Are Bitcoin Payments?

Bitcoin and other cryptocurrencies are forms of digital currency, but they aren’t backed by an organization, bank, or government. Bitcoin is decentralized and runs on a peer-to-peer network. This means that it’s not controlled by any single person or entity and is completely owned and operated by those who use it.

The main technology behind Bitcoin’s success is the blockchain, a way of storing data. The Bitcoin blockchain stores transaction data, and it’s publicly accessible for anyone to view. The information is kept up to date through a constant verification process, with each transaction verified before being stored.

Anyone can use Bitcoin anywhere in the world, provided they have an internet connection. Sending it as a payment is as simple as copying the recipient’s wallet address and then using a personal wallet to send funds. The network handles the transaction, ensuring that all blockchain copies are updated with new information on who sent and received the funds.

How Can Businesses Accept Bitcoin?

It’s now incredibly simple for businesses to accept payments made using Bitcoin. In the UK, there are a growing number of companies, both big and small, that accept cryptocurrency payments. Around 2.3 million British people own cryptocurrency, and this is growing each year.

Businesses can accept Bitcoin payments both in-person and in-store. If you’re a brick-and-mortar business, you can benefit from Bitcoin just as if you only sell online. There are now countless apps that work as POS machines to accept cryptocurrency payments. You simply need to enter the amount they owe, and the app will generate a QR code for the customer to use.

Accepting Bitcoin payments online is even easier, with many e-commerce providers allowing you to include a cryptocurrency payment gateway. Once customers have completed their order, they select the Bitcoin payment and use the QR to send the money from their personal wallet. Services like PayPal now allow consumers and businesses to easily send and receive crypto.

When accepting Bitcoin payments, it’s important to consider the taxation implications. Converting cryptocurrency to fiat may result in capital gains tax, so it’s important to discuss this with your accountant before accepting crypto payments.

Advantages of Accepting Bitcoin Payments

There are a number of benefits to accepting Bitcoin payments, which is why so many more businesses now allow customers to pay for goods and services using Bitcoin and other cryptocurrencies. Here are some of the main advantages:

• Lower processing fees – Most payment processing services come with fees that have big implications for your business. Reducing the fees you pay to process transactions can be significant, especially if you’re processing a high volume or have low margins.
• More convenience for consumers – Consumers will often avoid spending money in a business if it’s inconvenient, choosing to shop elsewhere instead. As crypto adoption becomes more widespread, having the option to pay for goods and services in Bitcoin will become ever more important.
• Secure payments – Cryptocurrency payments are highly secure, with no need to store user details. As long as consumers have the right protections, they can shop confidently.