Before I address the article title, it is important to define what a payment method is. If you are a businessman either a buyer or a seller you have probably used payment methods such as cash, checks, credit or debit cards and bank transfers. So the method chosen by a seller to pay a buyer is called payment method.
There are also online payment methods such as PayPal, payoneer. Bitcoin also fall into this category. As a business owner, the choice of payment method is determined by a number of factors, two of such factors are flexibility and profit maximization.
Increasing the varieties of mobile payments for your e-commerce store enables you to have more sales and conversions. Each payment method has its pros and cons. Bitcoin unlike other payment methods is yet to gain prominence. As of today, only large organizations are advised to offer bitcoin as a payment method.
However, if you want to include bitcoin as a payment method, there are some pros and cons(forbes.com) that you must know from the outset. Bitcoin is a type of cryptocurrency, other examples are ethereum, bitcoin cash etc. bitcoin is the first and most popular.
– Zero chargebacks
Some business owners have gone bankrupt due to chargebacks. You may be easily defrauded when you use some payment methods like paypal. However, bitcoin payment prevents zero chargeback or reversals. You do not need to bother about stolen credit card because payment is unidirectional.
– Transaction fee
One of the major downsides of credit cards is that the transaction fee is very high. Paying as high as 30-40% transaction fee does not maximize profit. Although paypal charges as low as 3-4% but this is not profitable in the long run especially for products that have low cost.
The good thing about bitcoin payment is that you determine the transaction fee you want to pay, as a matter of fact, you may avoid not paying a transaction fee. What determines the amount of transaction fee you pay is how fast you need the payment.
– It has a maximum limit
Unlike most known currencies, a limit has been placed on the number of bitcoin that will be in circulation. According to reports, the maximum number of bitcoins that will be released is 21 million. It has been argued that this limit will be only be reached by 2140.
However, bitcoin as a payment method is not flawless. It is not sure if bitcoin will provide total solution to inadequacies experienced in several other payment methods. You may visit hedgewithcrypto for more insights on bitcoin.
– Poor security
It is argued that bitcoin does not guarantee protection against hackers. Those that developed bitcoin do not have the right technology to guide against wallet vulnerability. This is very dangerous for a business owner whose business capital is majorly in bitcoin. Several of such attacks have forced some users of bitcoin to dump it. However, you may guide against this by using a trusted processor.
– The complexity of bitcoin
Most of the popular payment methods that people use are easy to operate. This is not the case with bitcoin, potential users must have an average knowledge of technology for them to know why and how it works.
You may wonder why payment anonymity falls under con, of course, it is a pro for a person that is concerned with privacy. Bitcoin, however, is commonly used by many people that engage in illegal activities. Some persons that prefer anonymity use this to their advantage
– Transactions have limitations
It takes a long time for a transaction to be completed. The sender cannot reverse the payment made when it is needed. This is is one of the areas where credit and debit card payments are preferable to bitcoin
While it is true that bitcoin payment has its demerits, the advantages can’t be overemphasized. It will soon become a household name that will replace some of the other methods