It may not be widely known, but there are businesses that accept cryptocurrency as a payment method. Bitcoin is received in about 15,000 businesses worldwide and Monero is welcome at over 950 merchants. Technologies such as artificial intelligence, cloud, and big data are being adopted by businesses, yet cryptocurrency is still on the verge. It is ironic that the word “cryptocurrency” isn’t fully utilized as a currency in most businesses.
One issue that is raised in the slow adoption is volatility. A Gartner survey says that 84% of CFOs are reluctant to add an asset that fluctuates to their balance sheets. Another issue for the reluctance of big businesses to incorporate cryptocurrency is the sheer number of cryptocurrencies currently available in the market and no one can say which one will remain. If you are a business owner, here are some things you can keep in mind if you are still on the fence about cryptocurrency in business.
Companies can invest in cryptocurrency
One way to prepare for economic uncertainties is to invest part of your business’ cash reserve into crypto. With the inevitability of increasing inflation rates, crypto protects the value of money over time. It is important to note here that the choice of which cryptocurrency to invest in matters. Learn all you can about the crypto coin your business is interested in. Do a thorough research and don’t fall for a coin’s current popularity. Study trends, listen to what experts say, and read the white paper. Choosing the wrong coin will have a negative impact on your business.
Accept payments in cryptocurrency
Transactions are processed quickly no matter where your customers are or the day of the week. Fees are lower compared to banks. It opens up your business to a new target market. Again, you may want to do research again on how to best go about it. Businesses still need to operate in the traditional financial industry. One step to consider is to find a crypto-friendly bank or financial institution and apply for a business cryptocurrency account.
If you don’t wish to apply for a business cryptocurrency account, you can opt to use a payment widget on your website. Widgets can accept any crypto payment and you can convert the crypto into your fiat currency of choice. You can then deposit it to your traditional business bank account.
Another option is to get a payment processor. Globee is a cryptocurrency payment processor that offers payment application programming interface (API) and e-commerce plugins. You can choose to get paid in cryptocurrencies or credit cards. You can choose to be settled with cryptocurrency or fiat.
Monero has a plug-in any online seller can install on their content management systems. Payments and other transactions are routed through your business’ Monero wallet and there is no third party needed to process payments. Another Monero option is to install Kasisto. Kasisto is a point-of-sale (POS) payment system that accepts Monero without needing any third party.
Its inherent volatility may present a complication in tax compliance. Depending on which country your business is in, you’ll need to know how your business will be taxed if you do accept payments in crypto. This can be mitigated by converting crypto payments into fiat right away. Regulations are clearer on fiat and you or your accountant can easily figure out how much tax is due.
You will need to have a secure and reliable wallet to store cryptocurrency payments if you choose not to open a cryptocurrency business bank account. Hot wallets like software, mobile, and web wallets are easily accessed and can be used for day-to-day transactions. Cold wallets or hardware wallets are storage for large amounts of crypto. You can direct payments to a hot wallet and use cold wallets for storing crypto you have allocated as a business investment.
If you’re looking for a secure web-based Monero wallet for your business, XMRWallet complements the privacy and security of Monero. You can send and receive Monero instantly, while in complete control of your coins and keys. Create an XMRWallet account now and enable Monero payments for your business. Make sure that only you know the mnemonic seed, spend key, and view key.