Businesses need to be watchful that as they change with the times, they are not overextending themselves when it comes to embracing new advances in the marketplace. For example, being on the cutting edge of cell phone technology is very costly and usually unnecessary. An office of 50 people can find themselves forgoing bonuses over getting the latest iPhone.
This also pertains to how businesses deal with customers, whether it pertains to accepting payments or establishing merchant accounts. There was a time when a business that would not accept credit cards was not outside the norm. Today, it’s unusual.
Digital Currency May be the Next Big Change
A few digital currencies have run their course, but it appears that Bitcoin may be able to break into the world market. There have been reports of New Yorkers meeting at Whole Foods stores to exchange dollars for Bitcoins.
On top of this, Zynga, maker of games like Farmville and Words With Friends is now accepting it. If Zynga was merely some fly-by-night company, this could be dismissed, but its apps are moving in droves and its stock price went up by more than 70% in 2013.
Should Traditional Companies Accept Bitcoin?
Regarding whether or not a business should accept Bitcoin, the short answer is: Yes.
The reasons why include the following: people who like this currency want to spend it; it can make for great press; it’s better to accept more payment options rather than less.
When word gets out that people can use Bitcoin to purchase your goods, they’ll come and check you out. Add to this that since this is still new, the local paper as well as some blogs will want to talk about it, creating free press. Lastly, this may be the next thing since credit card payments.
At one time, accepting credit cards did not seem attractive. People went into debt, the merchant paid a fee and received the money at a later date, and it was different. However, the idea of doing business without accepting plastic today is foreign, and those who got in on the ground floor picked up more money faster.
Bitcoin may not stand the test of time, but it seems to be grabbing hold of the economy in a positive way. Businesses can ride this wave with limited risk by accepting payment and immediately cashing it in for dollars, or passing it along to a supplier or creditor who accepts them as payment.