As more business occurs online, companies are continually seeking ways to save money and make payments faster and more securely. Regular payment methods—such as banks, credit cards, and online services—often charge high fees, sometimes taking 2–5% from each transaction. For small businesses or those selling worldwide, these fees can add up quickly.
Cryptocurrency is a cheaper option. By using blockchain technology, businesses can cut down or even avoid many of the fees that come with credit cards and bank transfers. Here’s how crypto payments can help lower costs and make payments easier for business owners.
The Hidden Costs of Traditional Payment Methods
Credit cards and online payment services like PayPal or Stripe usually charge businesses 2% to 4% for each sale. For small businesses with tight budgets, these fees add up fast and eat into profits. On top of that, there are often extra costs for things like refunds, international payments, or converting currencies. These hidden fees can make it harder for small business owners to grow, especially when dealing with customers from other countries or handling a high volume of transactions.
Why Are Crypto Payments Cheaper?
Cryptocurrencies like Bitcoin, Ethereum, and stablecoins (such as USDT or USDC) use blockchain technology—a system that sends money directly between people or businesses without needing banks or credit card companies. This setup helps cut out middlemen and lowers extra costs.
1. No Intermediary Banks
Crypto transactions don’t need banks, credit card companies, or payment processors. Without these extra players, businesses avoid fees from things like clearinghouses or acquirers. This means more of each sale goes straight to the business instead of being lost to third parties.
2. Lower Transaction Costs
Using fast blockchain networks like Lightning (for Bitcoin) or Polygon (for Ethereum), businesses can send and receive payments for just a few cents—or even less.
Compared to credit card fees, this can save a business a lot of money over time.
3. Eliminates Chargebacks
Crypto payments are final. Once a transaction is made, it can’t be reversed. This helps protect businesses from fraud and surprise refund requests.
4. Easy and Cheap International Payments
With crypto, sending money across borders is simple. You don’t pay extra for currency exchange or international processing fees, making it great for global sales. Customers from any country can pay in crypto without worrying about added bank charges.
Stablecoins Make Crypto Easier to Use
Some businesses worry that cryptocurrency prices fluctuate too much, too quickly. That’s where Stablecoins come in. Stablecoins are a type of cryptocurrency that’s tied to the value of a regular currency, like the US dollar. This means their price stays steady.
Popular stablecoins like USDC and USDT are great for payments because:
- Their value doesn’t fluctuate like that of Bitcoin or Ethereum.
- Transactions are quick and inexpensive.
- You can use them for everyday business, just like digital cash.
By using stablecoins, businesses can benefit from the advantages of crypto—such as low fees and fast payments —without the risk of price fluctuations.
Real Examples of Crypto Payment Savings
Many businesses and individuals are already utilizing cryptocurrency to reduce costs and expedite payments. Here are some examples of how it works in real life:
Freelancers Get Paid Faster and Cheaper
Freelancers who work with clients from other countries often use stablecoins like USDT or DAI. They get paid instantly without waiting days or paying high wire transfer fees. It also helps them avoid issues with blocked bank accounts or delays from international banks.
Online Stores Save on Processing Costs
E-commerce businesses that accept crypto don’t need to pay high fees to credit card companies or payment platforms. They also avoid delays caused by holding funds in escrow, which means they receive their money faster. This allows them to reinvest funds quickly into inventory, marketing, or business expansion.
Hotels and Tourist Services Cut Foreign Fees
Hospitality businesses in tourist areas are starting to accept cryptocurrency to avoid additional charges on international credit cards. This enables them to serve global customers while saving money and reducing long processing times. It also provides tourists with a smoother experience by allowing them to pay in a currency they already use.
You don’t need to build your wallet or know how to code to start accepting crypto. Today, numerous tools make it easy for businesses to integrate cryptocurrency payments into their websites, stores, or invoices. Here are some examples:
BitPay: Quick Setup with Invoices and Payouts
BitPay makes it easy to accept crypto with payment buttons, custom invoices, and automatic payouts in your local currency. It’s a popular choice for online stores that want fast crypto payments with minimal hassle.
NOWPayments: Supports 150+ Coins with Auto-Convert
NOWPayments allows you to accept over 150 cryptocurrencies and automatically convert them into the preferred coin or currency. This is great for businesses that want flexibility without worrying about price swings.
Coinbase Commerce: Simple and Trusted Integration
Coinbase Commerce enables businesses to accept cryptocurrency and decide whether to hold it or convert it to cash. It’s user-friendly and backed by one of the most well-known names in the crypto space.
Crypto Payments and Taxes
Cryptocurrency can help reduce payment fees, but it also comes with specific tax rules to follow. In many countries, getting paid in crypto counts as income and must be reported using the coin’s value at the time you receive it. If you later sell the cryptocurrency for cash, you may also be required to pay taxes on any profit. Using stablecoins like USDT or USDC can make this easier, as their value remains relatively stable. To stay on top of taxes, you can use tools like CoinLedger or Koinly to help track your crypto payments and keep things organized.
Incentivizing Customers to Pay with Crypto
To encourage more people to use crypto, many businesses offer small discounts or perks to customers who choose it as a payment method. For example, a company might say, “Pay with crypto and get 2% off your order.” In many cases, the savings from lower processing fees are greater than the discount offered. It also helps attract crypto users who prefer using digital coins instead of traditional payment methods.
Risks and Considerations When Accepting Crypto
While crypto can save money and speed up payments, it’s important to understand a few key risks:
- Volatility – Crypto prices can change quickly. If you don’t use stablecoins or auto-convert features, the value you receive may go up or down.
- Unclear Rules and Regulations – Crypto laws are different in each country and still changing. It’s important to stay updated and follow local rules.
- Extra Setup and Learning – Your team will need to learn how to safely use wallets and handle crypto payments, including how to manage refunds.
Working with a trusted crypto payment provider can help reduce these risks and make things easier for your business.
Final Thoughts
Accepting crypto payments isn’t just a new tech idea—it’s a smart way to lower costs, reach more customers, and make international payments easier. With tools that can automatically change crypto to cash, protect you from price changes, and help with taxes, businesses of all sizes can enjoy lower fees and quicker payments. As the industry of crypto keeps growing, starting early could give your business an advantage in the future.
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