If you open any financial news website, chances are that 3 in 5 headlines are somehow related to cryptocurrencies. Whether it’s a new token launch, a coin that’s doing better than expected, or an ambitious project on the blockchain, one thing is for sure: everyone is talking about digital currencies.
However, purchasing, keeping, and trading cryptocurrencies is no longer the sole approach to handling digital assets. New ways to spend virtual currencies and put them to practical use are seeking to transform the way people across the world make payments. According to recent studies, crypto payments have been continuously expanding. One significant explanation for this is the growing number of large brands who accept bitcoin and other cryptocurrencies as payment for their goods and services.
Blockchain technology was created for the purposes of finance and accounting. The concept of immutable transaction records maintained on a global decentralized ledger is establishing the groundwork for a quicker, cheaper, and more transparent financial system.
However, there are more immediate benefits that companies may experience by embracing cryptocurrency for their financial operations. For one thing, crypto payments can be less expensive. Transaction fees on various blockchains are under 1%, compared to 2.5-3.5%, which is how much card processors or banks charge for international payments.
Paying bills and invoices on time is very important for small enterprises and freelancers. Even before the epidemic, experts discovered that firms in the Asia Pacific had 44.5 percent of their bills unpaid at the due date, while those in the Americas had 50 percent of their invoices past due as of 2018.
While cryptocurrencies have a long way to come until they fully replace fiat currencies, there is an increasing number of ways businesses can use these assets to cover business expenses and reap the benefits of a decentralized payment system. Below are some examples of invoices businesses can cover with Bitcoin and other crypto assets.
By now, a number of companies have announced they are starting to accept crypto payments for the products and services they offer, but what if entrepreneurs were also able to pay their business invoices with digital assets? Now, it is possible.
Some real estate companies, such as the one run by billionaire Rick Caruso, have already embraced crypto payments directly from tenants for both their residential and commercial properties. This means a company holding crypto assets can now redirect them towards sustaining their business operations.
However, even if your landlord does not accept crypto payments directly, there are a number of services that will still allow you to use crypto assets as payment. These services can convert your crypto assets into fiat currencies for a small fee, enabling the use of Bitcoin and the likes in everyday life. Some work as debit cards, which means you top it up with crypto, and the conversion happens when you pay. This way, the vendor receives money in the fiat currency of their choice. Make sure you do your research and choose the best cryptocurrency payment gateway offering low fees and great reliability.
While some landlords and real estate companies are keen to accept crypto payments, utility companies are not as eager to do the same. Businesses that want to pay their utility bills with bitcoin or other crypto assets will have to do so using external payment services such as crypto debit cards and crypto bill payment platforms that act as a crypto to fiat or fiat to crypto payment gateway.
Both of these services work in a similar way, in the sense that they convert your crypto assets into fiat currencies, which you can use to cover your expenses. Debit cards can be used with any vendor that accepts card payments, whereas payment platforms enable you to pay invoices out of your crypto wallet and convert the asset into fiat when sending it to the vendor.
For the most part, the insurance sector has approached Bitcoin and crypto in general with caution. However, things are starting to change. While life insurance is still untouched by digital assets, insurance companies have begun taking bitcoin premium payments for other products in their portfolios, such as car insurance, business insurance, and the likes.
For example, in April 2021, AXA, a well-known Swiss insurer, stated that it started adopting bitcoin as a payment method for all of its insurance options except life insurance, which is still facing regulatory issues. Another well-received insurance company, Premier Shield Insurance, which provides house and vehicle insurance plans in New England, accepts bitcoin for premium payments as well.
A number of telecommunications companies, including internet and mobile service carriers, are now accepting crypto payments for the services they offer for both residential and commercial clients. AT&T became the first major mobile carrier to embrace crypto payments back in 2019, and they believe they have made the right decisions.
Customers are able to use their crypto wallet to cover internet and mobile services through a third-party processor. When they pay bills online, customers are able to select the respective processor as they payment option and follow the steps to complete the transaction. They can use Bitcoin and any other crypto asset covered by the third-party processor.
Other expenses you can cover with crypto
The expenses mentioned above are the main ones your business can cover using crypto assets. However, we know companies have a lot more expenses than just utility bills and rent, so we did our research, and here are some of the most important companies which accept bitcoin as payment for the services they offer to businesses:
- Visa and Mastercard: both credit card companies confirmed they are now accepting crypto payments, so if you have a business credit card you need to cover, you can now do so by using crypto.
- Expedia: Through its cooperation with cryptocurrency-friendly travel booking platform Travala, Expedia is one of the most popular travel providers to take Bitcoin. You may now use more than 30 different cryptos, including Bitcoin, to book 700,000 hotels from their listings.
- airBaltic: AirBaltic, a Latvian airline, was the first in the world to accept Bitcoin as payment for fares in 2014. Since launching the payment option seven years ago, the firm claims to have completed over 1,000 Bitcoin transactions. Following this decision, another eastern European carrier, LOT Polish Airlines, followed the trend.