Accepting Bitcoin payments is advantageous due to lower fees than credit and debit cards, expansion of customer base and real-time bank balances. However, risks like volatility and cybercrime may undermine these benefits.
Cryptocurrency payments help save excessive credit and debit card processing fees as they are decentralized and do not need intermediaries to verify the transaction. Moreover, merchants do not incur overseas currency exchange changes if payments are made in BTC or other cryptocurrencies.
High transaction speed is another benefit of accepting Bitcoin payments, allowing businesses to receive payments in real-time. Moreover, with the increasing customer demand to pay in crypto, offering Bitcoin as a payment method will help acquire more shoppers.
However, accepting cryptocurrency payments impose tax implications on businesses. For instance, any earnings from cryptocurrency as income will be subject to income tax: a beginning rate of 19% and an intermediate rate of 21% for residents in Scotland, or 0% to 45%, depending on one’s tax band in Wales, England and Northern Ireland.
Another negligible point while considering accepting Bitcoin payments is the volatile nature of the crypto market, i.e., sharp and abrupt price movements might result from unanticipated shifts in market sentiment.
Additionally, hackers can steal funds from cryptocurrency wallets using tricks like sending phishing emails or redirecting victims to fake websites. Therefore, any business that wants to accept BTC or other cryptocurrencies as payment methods should assess the risks and returns before making any decision.