TABLE OF CONTENT

• DEFINITION OF CRYPTO-CURRENCY
•  BACKGROUND OF CRYPTO-CURRENCY
• BENEFITS OF ACCEPTING CRYPTO PAYMENTS FOR START-UPS
  • GLOBAL STRETCH OUT
• • LOWER TRANSACTION FEES
• • INSTANT TRANSACTION PAYMENTS
• • INCEASED SECURITY
• •  ACCESS TO NEW CUSTOMERS SEGMENT
• • INNOVATIONS
  • ELIMINATING COMPETIONS
• CONCLUSION

DEFINITION

CRYPTO-CURRENCY is a dual focus word originating from the two words “crypto” and “currency”. It is defined as any form of digital/virtual currencies used in digital transactions with a cryptography which secures all transactions.

BACKGROUND OF CRYPTO-CURRENCY         

Crypto-currency is an alternative form of payment, with a peer–to-peer (p2p) system that ensures secured sending and receiving of payments boycotting the need to be physically present and physical money movement and exchange. There are various types of crypto-currencies but most common is Bitcoin with the symbol ( ₿ ), others include Ethereum (ETH), BNB (BNB), Solana (SOL),Tether (USDT) etc. For a start up to own any of the aforementioned crypto-currencies, you need a crypto wallet. Crypto wallet is a place (software program) to store all crypto-currencies.

Crypto-currency can be dated back to the early 2000’s but the most popular crypto-currency which is Bitcoin (BTC) was introduced into the digital space in 2009 by someone or a group of persons with a pseudonym name Satoshi Nakamoto.

THE TOP 7 BENEFITS OF ACCEPTING CRYPTO PAYMENTS FOR STARTUPS                                                                                                                                                                                                                                         

1. Global Stretch-Out: As a start-up, growing and reaching customers is one of your top most priorities. These customers can be in any part of the world depending on your length of publicity and you do not want anything to come between you and their patronage. Customers not in the country of the start-ups would be discouraged to patronize because of the difference in banking system and the stress that comes with using traditional banking system like numerous fee, lengthy processes, physical presence, currency exchange rates, international banking regulations etc.. crypto-currencies are not restricted to any particular country so a start-up that accept crypto payments ie the use of  crypto-currencies for their transactions creates a means of acquiring global customers for themselves hence expanding the market reach of startups and merging in the market. There are some people that are unbanked but would want to patronize the start-up,  Crypto-currencies provides financial services to such individuals, giving them access to crypto payments

• Lower Transaction Fees: A start-up using traditional banking system as their only means of transaction payment is limited. With every bank transfer or credit card transfer there’s a transaction fee attached and customers don’t really want to pay extra. Crypto transactions have little to no extra fees. So a start-up that has a crypto wallet and accepts crypto payment as a means of transaction payments will attract more customers. Also having an international customer and using only traditional banking will incur high conversion fees, so to eliminate the need for currency conversion fees in cross-border transactions, the use of crypto payment is important. Start-ups can also save on their end by using crypto-currencies because as a merchant you incur back-charges and related fees from using traditional banking.

• Instant Payment Transaction: Crypto payments operate on decentralized networks, eliminating the need for intermediaries such as banks or payment processors. So when a start-up accepts crypto payments they eliminate the delays that are associated with using traditional banks as crypto transactions are done within minutes or sometimes seconds, making transactions seamless and efficient.

 Crypto-currency transactions can be initiated and processed at any time, day or night, without dependence on banking hours or holidays. This helps start-ups who accept crypto payment transactions to have instantaneous payments confirmations ruling out risk of payment disputes and ensuring timely delivery of goods or services. This improves customer’s experiences leading to a returning customer.

• Increased Security:  All Crypto payment transactions are recorded on a decentralized and immutable ledger known as the block-chain. Block-chain technology provides transparency and auditability of transactions, allowing startups and stakeholders to trace the flow of funds and verify transaction histories, this eliminates or reduces the risk of fraud or unauthorized alterations to transaction data Crypto-currency transactions are also peer-to-peer and cryptography techniques like cryptographic keys to securely store and manage digital assets hence increasing financial security for start-ups.

• Access to New Customer Segment: The world is going digital with people leaving behind the traditional means to dong things. Crypto is a niche in the digital world that has lots of enthusiast, people who are passionately interested in block-chain and digital currencies. Such people would mainly be interested in patronizing businesses that accept crypto payment so a start-up that uses crypto payment will attract tech-savvy customers. It is well known that Crypto users are usually the first line of persons that get the news of a product or service, the crypto community get the update first so Startups accepting crypto payments can leverage this enthusiasm, positioning themselves as pioneers in their respective fields and attracting customers who are eager to try out new solutions.

• Innovation: Accepting crypto payments positions startups as forward-thinking and innovative enterprises that are at the forefront of technological advancements this perception enhances the brand image and resonates with customers who value innovation and cutting-edge solutions. Start-up with tech –savvy brand image is attractive to customers and older brands that are looking to invest in start-ups or partnerships and collaborations with other innovative companies.  Accepting crypto payments leads a start-up into the crypto space where they can link with like-minded brands and amplify their brand visibility and unlock new growth opportunities through joint initiatives and co-marketing efforts.

• Eliminating Competitions: Accepting crypto payments demonstrates a commitment to innovation and forward-thinking, which can differentiate startups from competitors who rely solely on traditional payment methods. This innovative approach can give startups a unique selling proposition (USP) that sets them apart and makes them more attractive to customers seeking modern, tech-savvy businesses. Crypto payments enable startups to access global markets and reach customers in regions where traditional banking infrastructure is lacking or unreliable, this is a niche that not all start-ups have thought of and pushes start-ups who use it in the market. Embracing crypto payments can help startups build trust and loyalty with customers who value transparency, security, By providing a secure and convenient payment option, startups can foster stronger relationships with customers, reducing the likelihood of losing them to competitors

Conclusion: crypto payments position start-ups as industry leaders which attract a diverse customer base also startups can mitigate risks associated with financial transactions, protect sensitive data, and build trust with stakeholders in an increasingly digital and interconnected world with the use of crypto-currency.