6 Reasons Why More Enterprises Are Billing and Invoicing In Crypto

Crypto for brand activation and customer loyalty

Cryptocurrency is a great way to attract the devoted legions that rally around the flags of various crypto communities. If you're a business owner accepting crypto, you must let prospective customers in these communities know about it. Crypto offers an opportunity for merchants to build a loyal customer base by offering discounts or other incentives in exchange for using their preferred payment method.

This can encourage customers to return to your store because they know they can use cryptocurrency as a form of payment. For example, if someone spends $100 on your website and pays with Bitcoin, you can offer them a 10% discount on their next purchase if they use that same cryptocurrency again.

Like how CRM apps like Sales, HubSpot, and Freshsales help you offer seamless customer experience to your clients, crypto-based transactions foster customer loyalty. To boost customer loyalty by leveraging robust CRM features, you can check out reputable app analysis sites or this Daylite review for guidance.

Furthermore, creating an email list of people who purchase with different cryptocurrency types can help you stay in touch with them, build relationships, and increase sales over time.

Crypto can kill chargeback fraud

Cryptocurrency is a great way to protect merchants from chargeback fraud. Chargeback fraud is when a customer purposefully disputes a legitimate payment transaction through the issuing bank or payment processor. 

If you're an eCommerce, or online-based service business - this can be a real risk to your bottomline. According tor LexisNexis Risk Solutions’ True Cost of Fraud Study 2022, merchants lose an average of $3.75 for every $1 lost to fraud. This is due to added fees, increased overhead, and other losses associated with chargebacks.

By accepting cryptocurrencies as payment, you can eliminate the risk of fraudulent chargebacks, as they are largely irreversible. Transactions using cryptocurrencies aren't subject to chargebacks. In cryptocurrency transfers, the funds can be held in an escrow smart contract until the satisfactory transaction is confirmed by both parties. Once the transaction is complete, there is no way to reverse it.

Gil Penchina, former angel investor in PayPal had this to say: “For merchants, it is an amazing opportunity. Compared to Paypal, crypto has no credit card fees, no chargebacks, no 'Oops, we decided to hold your cash for 3-12 months while we investigate something we can't disclose.”

Fast, easy, and secure conversion into local currencies 

When you buy cryptocurrency, you’ll need to find a place to exchange it for local currency. You can do this at a cryptocurrency exchange—but not all of them are created equal. They can vary significantly by fees, processing times, and market integrity.

If you accept mostly popular stablecoins like USDC, or EURe - you can also create corporate accounts with their issuers like Circle and Monerium. They typically allow you to easily convert your stablecoins to cash deposits into your bank account at a 1:1 exchange rate.

Accounting for crypto transactions

Cryptocurrency is secure and immutable. Because each transaction on a blockchain network is recorded in an unalterable ledger, it makes it possible to easily audit and account for.

The same goes for any other information stored on the blockchain: Once it's there, it's forever. Multiple computers, or nodes, verify each transaction on the blockchain, and no one can change or delete it.

However, the blockchain records each transaction on a public ledger but doesn’t include personally identifiable information (“PII”)  about who made that purchase or how much they spent. Your business likely already uses a number of top accounting software systems. But the inherent pseudonymity of crypto payments requires specialized crypto accounting systems that can read and label your transactions across various blockchains. 

Some crypto accounting platforms like Cryptoworth are integrated with crypto invoicing tools like Request Finance, further allowing you to simplify how you account for your accounts receivable settled in crypto.

It's time to support crypto and not be left behind

Cryptocurrency invoicing and accounting are potent responses to the current market trends in digital currencies. It’s an innovative way to make invoicing more effortless and secure, and many crypto enthusiasts would also say – anonymous. The companies that provide such services have even more reasons to do so, as they get a lot of benefits.

Integrating crypto payments into traditional billing and invoicing software isn’t that challenging. Both companies and clients can benefit from this process because they will no longer have to maintain multiple fiat accounts. It’s a win-win situation for both parties.