As a freelancer and a business owner, part of your responsibility is learning about the different forms of payment methods plus the current trends. And to that effect, there's a lot of fuss on; should freelancers and marketing agencies accept cryptocurrency as a form of payment?

Over the years, cryptos have grown to be reliable and present a specific set of features that's completely different from the fiat currencies we are all used to. One of the most relevant features is that crypto-transactions are hard to trace.

And as this new method of payment rises, online agencies who hire freelancers are trying to adapt to the new trend. But that still begs the question of whether or not they should accept cryptos. Regardless, before we get to answering that question, do you know what is cryptocurrency? If not, let me give you an explanation.

What is Cryptocurrency?

Taking away all the noise around cryptos, simply put, cryptocurrency is best described as an internet-based medium of exchange. This type of transaction uses cryptographical functions to verify financial transactions. Sound a bit technical, right? Well, it's not that complicated to understand. Let me elaborate.

Take the money you have in the bank, it's simply entries in the bank's database that can be changed in case of a specific condition. For instance, when you send money to another bank account, your entries will reduce showing that you've transferred some money to a different account. The opposite happens when someone sends you money when they pay for services you've offered their company or they've bought a certain merch from you.

Therefore, money is all about verification that it has been used and transferred from one party to the other. Otherwise, truth be told, coins and papers are valueless. Now, cryptos offer the same database entries without the centralized bank and the physical cash also known as fiat currencies. Get it?

Typically, cryptos use blockchain technology as leverage for their financial transactions the same way fiat currency uses banks. The only difference is, blockchain tech is decentralized and transparent. That's a lot to take in! Well, now let's get to the less complicated part:

Companies that are already using cryptocurrencies to transact in their platforms

Overstock

In 2017, Overstock announced to the world that they will be accepting cryptos as a form of paying for goods and services in their platform. They decided that they will not only take Bitcoin but also Monero, Litecoin, Ethereum, and Dash as well. To that effect, the company uses Shapeshift which is an exchange platform that allows Overstock to complete its transactions. This platform converts fiat currencies to blockchain within seconds without having to necessarily set up an account.

Subway

This is also another company that accepts cryptocurrencies. They followed the suit by allowing their customers to pay for meal items using cryptocurrency. However, the company only accepts bitcoins. So, we don't know if Subway will accept the rest of the altcoins.

PayPal

Yes, PayPal also accepts payment transactions through cryptocurrency. PayPal accepts payments done with Bitcoins. The online payment platform runs by using other payment processors such as Bit Pay, Coinbase, and Go Coin.

This is one of the biggest payment companies online. And the fact that they accept crypto payments means a lot especially in terms of the future of crypto. There's talk that PayPal will soon accept Ethereum as a mode of payment. That will also be a game-changer in the adoption of cryptos.

Expedia

Expedia is another major company that accepts cryptocurrencies in the form of Bitcoins. But it's not as sweet as it sounds. The company doesn't allow cancellation of transactions done by Bitcoin. So, you have to be sure about your purchases before making them.

Shopify

Who doesn't know Shopify in this current age, right? It's one of the most popular eCommerce websites ever. And now, the platform allows transactions using cryptocurrencies. As early as 2013, Shopify was already accepting purchases using cryptocurrency. However, the only crypto they are accepting is Bitcoins. Hopefully, there's a possibility the company will soon accept purchases using other crypto coins.

Microsoft

Last but not least, Microsoft is also accepting purchases using cryptocurrency. The company started accepting Bitcoins back in 2014. But they announced they'll stop accepting purchases using crypto which they later retracted their statement.

But don't get worried. This is not the first time the company made this statement then later changed it. Back in 2016, Microsoft did the same thing which they later overturned a few days later. All in all, time will tell whether or not the company will stop accepting bitcoins as a form of payment in their company.

Why don't freelancers accept cryptocurrencies?

I'm sure you are probably wondering why don't freelancers and marketing agencies accept cryptocurrencies as a mode of payment. Well, the companies above are not the only companies that accept cryptocurrencies as a mode of payment. On top of that, they are not the only ones doing it successfully. But if you are not doing it successfully, then it stands to reason that you will not accept it again, right? There's a possibility that most companies do not accept cryptocurrency because of previous bad experiences. More importantly, some companies do not allow cryptocurrencies as a way of payment because of their volatility. The wild swings of value in the cryptocurrencies makes it hard for merchants and small retailers. It's even more difficult for them to absorb the swings in cryptocurrency whenever there's a drop or any swing in the currency.

Benefits of using cryptocurrency in your business

As always, a business owner should ensure that you can offer all forms of payments to your clients and customers. And with that in mind, freelancers and marketing agencies should always try to look at the positivity of using cryptocurrency in their business. So, without further ado, here are some of the advantages of using crypto in any business.

Low transaction cost

Without a doubt, most businesses are getting high fees for their transactions which generally causes an effect in their finances. Therefore, crypto is an obvious solution. This digital currency can mitigate the string. And what's more, cryptos tend to have a low transaction cost when compared to debit and credit cards.

In most cases, debit cards will take up to 3 percent of the transaction and there are also some hidden costs in the process. On the other hand, Bitcoins can have a less than one percent transaction cost which is an advantage to most business owners.

Fraud Protection

Another reason why you should accept crypto in your business is that it protects your business from fraudulent activities. With crypto, the customers and clients do not have to give you their financial information-no siree!

But that's simply the same thing that happens when you use PayPal. However, the only big difference is the third party will be receiving and sending cryptocurrency. So, in an era where hackers are getting smarter in their criminal activities, an extra layer of security will only give you more peace of mind.

Money moves faster

In most scenarios, when freelancers and marketing agencies accept payment via debit cards and credit cards, they will most likely not see the money for a few days. That's because of all the third parties involved in the transaction and the rules that are used during the transfer. In could eventually take a couple of days before the money hits your bank account.

This can be frustrating especially if you need the money to keep the workflow moving or you rely on the money to start on the task at hand. However, this is not the case when you are dealing with cryptocurrencies. That means your agencies can now have smooth operations and faster money transfers that will keep the business running.

It makes foreign payments easier

Freelancers and marketing agencies are always weary especially when it comes to going global. That because of the transaction costs involved. On top of that, they can also be quite expensive. To reduce this effect, some companies like PayPal offer 3.9 percent on all foreign payments.

But of course, as usual, cryptos come to the rescue. So, because cryptos are global, this easily removes the stress of changing from one currency to the other. It makes it easy for business owners to stop worrying about going global and they leap of faith. There's a huge comparison between 0 percent and 3.9 percent.

So, should freelancers and marketing agencies accept cryptocurrencies?

Of course, yes. Not to sound like a broken record but this is the currency of the future. It seems impossible to eliminate banks as a centralized currency, but a few years back, cryptos were also impossible. So, who knows about the future! We can only speak of our today. And as of current status, cryptos offer more benefits than anyone could imagine.

What's more, the fact that big companies like PayPal accept cryptos, it only means that in the next few years, we'll have every company accepting cryptos. So, the best way forward is to jump on the ship while it's still at the shore. As a Freelancer/Local SEO Specialist and PPC Management Agency I have integrated cryptos as a form of payment. So far, no complaints. Do your Due diligence on cryptocurrency and you’ll have a clear understanding if it worth it or just not suited for you.

Article by Jamylee Germany

Gen Y and Z Marketing Specialist

Author's Bio: 

Marina Pal is a renowned author and social media enthusiast.