It always makes sense to try and offer your online customers as many payment options as possible so that they can always choose their preferred method at the checkout but what about the new kid on the block, bitcoin?
When it comes to payment solutions there are the tried and tested options that everyone is familiar with such as credit cards whereas bitcoin has been around for a relatively short space of time, by comparison.
Here is a look at some of the key considerations to take into account when deciding whether to include bitcoin as a payment option.
The risk of fraud
Fraudulent transactions are a nightmare to deal with and have a detrimental impact on your business even if you are fortunate enough to suffer a small amount of them in comparison to the volume of verified payments you process.
You always have to be vigilant in your attempt to minimize the risk of fraud and because the bitcoin blockchain is structured in a way that makes it very difficult to carry out a fraudulent transaction you should find that the security protocols of bitcoin make help to keep your exposure to risk low.
A global payment solution
A key point to remember is that cryptocurrencies like bitcoin are not restrained by exchange rate issues across borders which means that customers around the globe would be able to make payment using a universally recognized payment option.
Clearance times should also be slower in a number of circumstances and that means that the cash can be in your bank within a short space of time when you accept payment by bitcoin.
Relevancy with your audience
Depending on the demographic profile of your target audience it could turn out to be a smart move to include bitcoin as one of your methods of payment offered.
Because of the relative infancy of bitcoin, it enjoys a certain level of resonance and acceptance amongst a younger demographic.
If some of your customers are already familiar with how bitcoin works and are comfortable with this method of payment you could see higher conversion rates when you offer them this option at the checkout.
Pros and cons to consider
Although there are definite pros that make bitcoin an attractive payment option to add to your store it should also be noted that there are some potential downsides that you need to factor in when you are evaluating whether to go with this cryptocurrency.
One point to consider would be the potential volatility in bitcoin prices, which could have an impact on your transaction margins.
In addition, you should verify the regulatory aspects of accepting bitcoin as your business location could have an impact on your decision.
If you do decide that the pros outweigh the cons you will need to either have a digital wallet or a Point of Sale machine.
Explore your options and decide whether it could prove to be a worthwhile business decision to accept bitcoin on your online store.