In an increasingly competitive business scenario, organizations are working hard to attract new customers while delivering a better value proposition to the existing ones. In addition to products or services, we are witnessing innovations in a variety of other value chain activities such as quick delivery, competitive pricing, and eye-catching advertisement campaign.
Now with the evolution and widening adoption of cryptocurrencies, payment through Bitcoin can act as a source of gaining competitive advantage. Many well-known companies, including bitcoin lottery websites and online gaming sites, using the option of digital coin payment to their advantage as the facility, which can lure more new customers to their businesses. The strategy is working nicely, and customers are responding in a very positive manner to this new value addition.
Crypto Payment Popular Methods
There are primarily two ways by which payment through the cryptocurrencies can be made – Crypto POS (point of sale) and Crypto ATM. In the Crypto POS method, customers can use their cryptocurrency cards or wallets to make payment for the product or services availed. It is similar to our credit or debit card, and the operational mechanism behind Crypto POS is uncomplicated and straightforward.
We can take the example of Salamantex, a crypto POS system that allows users to choose from six different cryptocurrencies for making the payment. It is important to note that most of the businesses today focus only on accepting the payment through Bitcoin, which is not a strange thing given the fact that Bitcoin is the most popular and valued cryptocurrency in the market. However, there are other cryptocurrencies rising in their popularity, and adding these digital coins in the list of popular cryptocurrencies will help the business in a big manner.
The second method of making a payment is Crypto ATM, a concept that works along similar lines as our conventional ATMs. Crypto ATM converts cryptocurrencies into real cash; however, the issue again here is that most of Crypto ATMs operational in the world today convert the only Bitcoin into cash. This limited choice factor is a constraint for many. That said, we are witnessing the evolution of crypto ATMs slowly and steadily as these ATMs have started accepting a number of cryptocurrencies to facilitate the conversion process.
We also have examples of reputed companies that have started accepting Bitcoin and other cryptocurrencies as a payment method for availing their products or services. KFC is the most famous name that came up with the option of Bitcoin Bucket in 2018. The Canada chain of the KFC floated the concept and the offer got a tremendous response from buyers. The company analyzed that prospective buyers found this option cool to pay with the cryptocurrency and this reason became the biggest one behind the success of the campaign.
A similar strategy was adopted by an American travel agency, CheapAir, which came up with an idea of accepting the payment in cryptocurrency through their BTCPay Server. This convenience added a lot of new customers who are habitual in making payment through Bitcoin regularly. Subway, another popular fast-food chain, went ahead and started accepting payment through cryptocurrencies, including Litecoin, along with Bitcoin. All these campaigns turned out to be very successful and can undoubtedly be taken as a precursor to a big cryptocurrency revolution that is knocking on our doors.
These corporate examples have many lessons for businesses functional across industries and are operating in both local and global scenarios. With research suggesting that overall concentration and competitive scenario is going to become more intense in the coming days, companies need to look out for new ways to enhance the value proposition and customer satisfaction. Adding a new method of cryptocurrency payment – which specifically finds favor among young and affluent customers – can definitely prove to be a source of competitive advantage. Not only the crypto payment method will raise your profitability, but also help to make the business sustainable in the long run.