Over the last ten years or so, the cryptocurrencies passed a long way from being laughed at to being impossible to ignore. Although they didn't quite destroy the legacy banking system they so often liked to brag, Bitcoin, Ethereum and the likes did move the mountains across the financial landscape and become a real force to be reckoned with.
How does this economic development translate to the small business sector? Cryptocurrencies have by now been successfully exploited even by physical persons. Let’s see what happens when we move the ball a notch further into the SMB backyard.
Adoption of cryptocurrency transactions
As time goes by, cryptocurrencies are slowly but steadily becoming a mainstay on the list of widely accepted payment methods. There is no reason why small businesses shouldn’t jump this bandwagon and put digital coins among their accepted payment methods as well. The number of people using these assets is growing every day. Allowing them to purchase without having to exchange coins to currencies can do a lot to increase the appeal of companies that have just joined the eCommerce game.
Lowering the fraud risk
All contemporary cryptocurrencies are based around the technology known as blockchain in which the transactions can’t be reversed, and the concept of debt effectively does not exist. This simple fact brings a lot of good things on the table, especially when it comes to lowering the risk of various types of fraud. For instance, you have probably heard about the chargeback fraud in which a consumer makes an online purchase and then cancels the transaction upon receiving the goods. The very nature of blockchain makes these types of scams impossible.
Setting up an additional income flow
In the introduction, we have mentioned that cryptocurrencies have been successfully exploited by a whole slew of people who have nothing to do with the corporate world. The rules of the crypto game are rather simple – anyone with professional Bitcoin mining hardware can join the blockchain and start making their own coin deposits. Small businesses are no different. As a matter of fact, with a working capital that far exceeds the average family budget, SMB companies can put more money in their rigs and establish one lucrative additional income flow.
Opportunities for investments and teaming up
Entering the cryptocurrency market doesn’t necessarily have to mean starting mining the coins or even accepting the crypto coin payments. The market can simply be observed as yet another opportunity for investment. Blockchain startups are popping up on the radar with each passing day, and they are facing the same problems as the rest of the small business sector. Finding common ground and sharing the resources benefits all parties in this story. For instance, in return for funding the blockchain startups can develop listings for real estate companies, and so on.
Cryptocurrencies as a part of a loyalty program
This is yet another interesting way the small companies can get into and exploit the crypto coins. Namely, instead of offering reward tokens to loyal customers, the small companies can be offered with crypto coins gained through mining or transactions. The main difference between the two is that, unlike tokens, the crypto coins can be exchanged for real currency and spent elsewhere. This move doesn’t put much financial pressure on the business but creates tremendous value on the consumers and results in excellent word-of-mouth.
Cutting down the price of transactions
And for the very end, we have one topic that definitely more belongs to the realm of "why's" rather than "how's" but it does give a valuable perspective about the whole matter and an incentive to get your crypto game together. All crypto transactions occur without the interference of mediators or other third parties, meaning that the various fees the small businesses have today along the way are effectively eliminated. If they leverage this fact, small businesses can make considerable savings that in turn, allow for price adjustments and other moves that make the company competitive.
We hope these few considerations gave you a general idea about the benefits the cryptocurrencies can bring to the SMB sector and the ways small companies can tap into this lucrative market. Although they didn't completely take over the financial landscape, the crypto coins have become a great financial heavy hitter. Ignoring their benefits becomes only harder as time goes by.