Once the popularity of cryptocurrencies reached its peak, terms like coin cap, blockchainand ICOsbecame household names. However, where most people observed them as potentially lucrative investment opportunities, others saw what kind of change these trends stand to make in the modern world of business. This is especially true when it comes to SMBs, due to the fact that digital currencies offer new options and open access to opportunities that would otherwise stay closed. So, here are five ways in which digital currencies can help SMBs.
Faster, more efficient e-commerce
One of the greatest breaks and obstacles in the world of e-commerce is definitely the issue of security and potential hazard of credit card frauds. This makes people scared to entrust e-commerce businesses with their credit card information, even the reputable ones. Non-surprisingly, this makes both B2B and B2C transactions a lot scarcer than they have to be. With cryptocurrencies as a preferred method of payment, the decision-making process will be a lot faster, seeing as how it will be less fear-driven.
Lower transaction fees
According to one study, the main reason behind a high shopping cart abandon rate was the unexpected cost of delivery. In fact, most online buyers hate unexpected expenses. However, your efforts to be transparent may be significantly sabotaged by the troubles that come with high credit card transaction fees. With cryptocurrencies, you can significantly lower your transaction fees and provide your buyers with a much more honest pricing system. In this way, you get a more reliable way to build brand loyalty from scratch.
Differences between currencies today mostly come down to their value. Sure, local offline businesses may require you to pay in local currency and you might lose some money by transferring it. However, in the online world, the currency you pay with doesn’t really make a difference. This is especially due to the fact that most gateways offer a service of exchanging currencies for a fee. With cryptocurrencies, it’s much different, seeing as how each of them has its own field of specialty in which they excel against other coin types and digital currency companies.
For instance, a value you get when you decide to buy dash is not easy to quantify since it isn’t that easy to put a price tag on security, feedback system and numerous similar features. On the other hand, by choosing to work with NEO or Ripple, you get a different set of benefits and drawbacks. All in all, your transaction experience gets radically diversified.
Another concern that some people have is the ability of various parties to track your transactions, which is yet another thing you can avoid with the use of digital currencies. In fact, a lot of people go as far as to claim that cryptocurrencies act as digital cash, meaning that they are nearly impossible to trace. All in all, this can be a huge plus depending on the industry, especially if your services or products are delicate in nature.
The blockchain technology
Finally, with the existence and development of the blockchain technology, the business world becomes much more reliable. However, this is just the tip of the iceberg. The block principle shows great potential in protecting intellectual property, which might become its primary purpose in the future. Needless to say, this wouldn’t be possible without the attention and breakthrough that it received due to its association with digital currencies.
At the end of the day, digital currencies are a massive trend and it is only natural that it affects every single aspect of our world. It doesn’t only change the world of business from the technical standpoint but it also changes the mindset of people who get in touch with them. Digital currencies make consumers less afraid of technological trends, online transactions and online migration of business world, in general. Aside from this, by demonstrating just how lucrative tech startups can be, they are starting a new era when it comes to the investment trends amongst the general population.