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Payments in the Digital Age: Should Your Small Business Accept Cryptocurrency?

Small businesses have started accepting cryptocurrency payments. See how doing this can affect your transaction fees, taxes, and more.

Cryptocurrencies hit the mainstream

There was a point not too long ago when cryptocurrencies existed in the shadows. It conjured images of international criminal organizations, hacker cabals, and the dark web. However, in a very short time, crypto has stormed into the mainstream, led by a rapid adoption of Bitcoin.

  • Overstock
  • Starbucks
  • AT&T
  • Microsoft

Crypto for small business

While almost 33% of small businesses allow customers to pay in cryptocurrencies today, this number will likely go up over time as crypto receives higher adoption rates generally. One estimate predicted a nearly 13% growth rate for the industry from now until the end of the decade.

Crypto might remain a small portion of sales at this point. However, taking the plunge now offers a differentiation point and helps burnish a reputation for cutting-edge innovation.

So, whether your particular industry is already deep into crypto or pushing forward would make you an early adopter among your peers, there are some upsides to at least dabbling in the market. However, there are other considerations as well.

Pros:

Lower fees

Cons:

Added volatility

How to start accepting cryptocurrency payments

Before you decide to take the plunge into crypto, you also need to determine the best way to move into the market. With that in mind, here are a few steps that will ease your transition:

Understand the Market

Don’t make an impetuous drive into the crypto market. Research your options first. There are a lot of details to determine. (For instance, are you just going to accept Bitcoin? Or step into other cryptos as well?)

Think about an Integrated Solution

Your crypto operations should dovetail with your overall payments program. Don’t just create a crypto process to pursue the craze. Instead, take the endeavor seriously and be sure to incorporate it as a sustainable part of your overall strategy.

Don’t just create a crypto process to pursue the craze. Instead, [dovetail your crypto operations with your payments program] and be sure to incorporate it as a sustainable part of your overall strategy.

Find Tech Partners

As a small business, you probably don’t have the resources (either in time or expertise) to create a viable crypto program. You want to participate in innovative parts of the market. However, you don’t want the process to become a distraction from your main business line.

Stay Flexible

Crypto is a fast-changing field. Whatever decision you make about the asset class today, be ready to review that position down the line. In other words, don’t lock yourself into a stance. Instead, stay flexible and react to market preferences as they change.

Understanding the crypto opportunity

The reports are in. Consumers want businesses (including startups and small businesses) to accept crypto. In part because of this market pressure, more and more small businesses are making this possible.

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