Cryptocurrency is no longer just a speculative asset in an increasingly digital world. For small and medium businesses, cryptocurrency can play a pivotal role in streamlining operations, lowering costs, and expanding market reach, with efficient, cost-effective solutions being core to the long-term success of any business owner of digital currencies.

Reducing transaction costs

Cryptocurrency has changed how we do business, especially globally. It lets us work easily with vendors and partners worldwide, breaking down geographical barriers. The low transaction costs of cryptocurrencies help us collaborate with international businesses more efficiently and affordably, opening up new growth opportunities.

For businesses involved in international trade, or those simply looking to reduce the costs of domestic operations, cryptocurrency offers a way to bypass the expensive fees associated with traditional payment methods. Credit card transactions can incur fees of 3-4%, while cryptocurrency payments often come with significantly lower transaction fees.

With traditional payment methods, you often lose track of the process, it can take a long time, and the fees are unpredictable. But using something like a stablecoin can make things much simpler. Stablecoins offer more predictable and transparent fees, making it easier to manage finances and streamline operations. Stablecoins are a type of cryptocurrency that is pegged to a traditional currency such as the Australian dollar. This can help users hedge against currency fluctuations and speed up transaction times.

Cryptocurrency ATMs are a bridge between the traditional financial systems and crypto world by offering a straightforward and accessible entry point. Services like those provided by CoinFlip enable businesses to accept payments in crypto or convert cash to digital assets. The process is designed to be as simple as using a traditional ATM, allowing business owners to integrate cryptocurrency into their operations without needing to navigate complex technology platforms.

For SMEs that typically operate on tight margins, this reduction in fees is particularly beneficial, with cumulative savings on transaction fees making a substantial difference over time. As a result, lower costs could mean more resources are available for reinvestment into a growing business, whether through marketing, staff development, or other operational improvements.

Faster payment processing

One of the most frustrating aspects of traditional banking for SMEs is the time it takes to process payments. Cash flow is disrupted and critical business operations delayed, particularly by international transfers which can take days. By contrast, cryptocurrency transactions, such as those handled through CoinFlip’s large network of ATMs, are typically completed within minutes.

For businesses that rely on quick turnover of goods or services, such as retail or consultancy, faster payments mean they can operate more efficiently and respond to customer needs in real time. Imagine sending out an invoice and receiving payment almost immediately—this kind of liquidity could be a game changer for a small business.

Improving financial inclusion

Cryptocurrency ATMs can also be a lifeline for businesses operating in regions with limited access to traditional banking services. SMEs located in rural areas or underserved urban communities can use cryptocurrency to participate in the global digital economy without the need for conventional banking infrastructure.

For instance, a business in a remote area that previously struggled to find affordable banking services can now use a CoinFlip ATM to conduct transactions, access digital payments, or even pay employees using stablecoins. This opens opportunities for businesses that may have otherwise been excluded from the global marketplace.

As an example, a small business owner who runs a successful local honey shop in Australia might be struggling with rising shipping costs and the challenges of competing on an international level. The business could adopt cryptocurrency to lower operational expenses, reduce transaction fees and expand its customer base to include international buyers that might have originally been deterred by high conversion rates. This would allow the business to reinvest the savings from lower fees back into its operations, opening great flexibility to offer more competitive prices and grow its market share in new regions.

Being able to both buy and sell cryptocurrency allows people to access fiat (traditional) currency in places where cash is hard to come by. CoinFlip is installing ATMs in regional Australia at a time when banks are pulling theirs out. This shows our commitment to helping regional Australians maintain access to cash and continue participating in the economy. It’s all about ensuring that even those in remote areas have the financial tools they need to thrive.

Building community through blockchain

Beyond the financial advantages, cryptocurrency can also help small businesses foster stronger relationships with their customers. Blockchain technology is increasingly being used to power loyalty programs that are transparent, automated, and secure.

Other countries such as the US have had businesses quickly adopting cryptocurrency for payments, with many retailers now accepting digital currencies. This shift has provided customers with more flexible payment options and has streamlined transactions. Following this trend, cafes in Australia, such as Brew Lab Coffee in Sydney and Crypto Café in Melbourne, have also started accepting crypto. This not only appeals to tech-savvy customers but also makes the payment process more efficient and secure.”

When used effectively, cryptocurrency can provide small and medium businesses the tools they need to thrive in a competitive landscape. As business leaders, it’s our responsibility to stay ahead of the curve and ensure we’re using every tool at our disposal to reduce costs, improve efficiencies, and expand our market presence.

For more information about how cryptocurrency could help support business growth, read CoinFlip’s comprehensive guide.

Ben Brockliss is vice president for Australia and New Zealand at CoinFlip.