There’s a saying in the cryptocurrency community: “Bitcoin is freedom money.”
This saying makes a lot of sense the more you learn about crypto, because the combination of decentralization, privacy, and the immutability of transactions offers such a liberating departure from the history of money. Even though Bitcoin has been around for years, most businesses are just starting to embrace the benefits of incorporating crypto into their operations.
This guide covers the pros and cons of using Bitcoin to pay for shipping, which delivery services accept Bitcoin as payment, and why it’s worth the small learning curve to join the crypto revolution.
Why Should You Bother with Crypto?
Crypto benefits businesses in numerous ways:
- Financial freedom: Crypto lets users take full control over their finances. In countries facing the greatest socioeconomic challenges, the importance of decentralization to financial freedom is even clearer.
- Privacy: Bitcoin’s decentralized nature makes it easy to track all details of transactions but hides personal data so it can’t be hacked.
- Accessibility: Crypto is used all over the world in populations where people have become unbanked or lost access to bank accounts.
- Inclusivity: Crypto levels the playing field for economic access; it is accessible to people of all races, genders, and places of birth.
- Censorship resistance: Oppressive governments are known to use financial access to silence opposition. Bitcoin empowers the oppressed with a source of value that cannot be prevented or seized.
What Are the Benefits of Using Bitcoin to Pay for Shipping vs Fiat?
There are multiple benefits to paying for your shipping needs with cryptocurrency instead of fiat (the US dollar):
- No third-party purchase approval required: When you pay for shipping in USD, you’re probably using a credit or debit card, which means a financial institution has to approve the payment. If service is down or they choose to deny the payment for any reason, it’s a hassle to contact support. Crypto leaves you in charge. Make the payment right from your own hosted wallet, and the decentralized network validates the transaction without any agency, creditor, or bank interference.
- No higher costs or added fees: It’s easy to buy shipping labels with crypto—but it’s also affordable since there are no additional fees for the privilege. With Bitcoin Postage, you pay the same for shipping packages as you would if you were paying with fiat.
- Added protections for sensitive financial data: Every time you make a payment with a credit card, check, or debit card, your financial details are shared with third-party vendors across digitized connections that are often breached. Those details might also be stored on company servers where they can be stolen and leaked to the dark web. Crypto payments don’t contain personally identifiable data, so even if a hacker gained access to the transaction, there would be no private information to steal.
- Ease of Use: You can pay for shipping directly from your private crypto wallet or your company’s crypto eCommerce platform. You don’t need to exchange privacy and self-reliance for simplicity—you can enjoy all three.
Why Are Businesses Hesitant to Use Crypto for Expenses Like Shipping? 8 Crypto Pros and Cons
Crypto is an interesting combination of math, technology, economics, and a philosophical freedom movement. Its relative newness and mystery lead to some hesitance. The following are some of the top concerns business owners have about using crypto.
- Volatility
The Concern: Drastic crypto price fluctuations are an understandable concern. Major spikes and drops of 20% or more are common; even with Bitcoin, we’ve seen fluctuations of up to 200% within a couple of years.
The Response: Businesses have great options for locking in value immediately so volatility isn’t an insurmountable concern. What’s more, holding on to a small reserve in crypto is seen as an added bonus, as the value of top cryptocurrencies could rise over time.
- Transaction Anxiety
The Concern: Crypto transactions are irreversible, secure, and affordable. But, the whole process can be daunting. If you make an error pasting the recipient address, the amount you send is probably lost forever.
The Response: Wallets and retailers have made an effort to take the fear out of the process by providing QR codes to remove the likelihood of transaction errors. The fact that transactions are permanent can also be a benefit; it means the system is working properly.
- Regulatory Uncertainty
The Concern: This has become a significant concern in the crypto community. Because every country—and even individual US states—is weighing how they approach and categorize the use of crypto, companies worry that crypto transactions could fall under regulatory scrutiny and change how they operate.
The Response: The more local and national governments discuss these uncertainties, the more it illuminates the fact that crypto likely will play a permanent role in trade; the more businesses that use it, the more it becomes a permanent facet of infrastructure.
- Tax Implications
The Concern: The fact that selling crypto is treated as capital gains makes business owners nervous, and new users may feel lost in knowing who to talk to for advice. It’s also hard for anyone outside the crypto community to know the best platforms for handling and tracking transaction data for taxes.
The Response: These days are full of promise for crypto business solutions. Conversion fees are low, and the tax implications have little impact on operational costs overall. As with all things crypto, this could change, so it’s always best to talk to professional advisors for your business.
- Limited Acceptance
The Concern: From the outside looking in, the slow acceptance of crypto in business operations signals that there must be a reason not to use it.
The Response: The good news is that the solution is easy: The more companies that move to embrace crypto in their operations, the quicker the word spreads that decentralization is a major upgrade to old systems.
- Security Concerns
The Concern: People hear about hacks, individuals losing their private keys to their wallets, and crypto scams. They fear that an event will have a major impact on operations.
The Response: These events happen far less often than they do in the traditional banking system, and preventative measures are much more effective in fighting fraud, security, and personal privacy.
- Lack of Chargebacks
The Concern: Unlike credit card payments, crypto transactions are permanent and irreversible. This is a huge win for taking crypto payments, but companies worry about the implications when using crypto for business expenses. If there’s a problem, will it be more difficult to find recompense?
The Response: Companies can offer the same refund policies regardless of how payment is made. Any honest company will refund money for legitimate claims within a specified time frame. The original transaction isn’t reversible, but a refund can be issued through a new payment.
- Exchange Rate Fees
The Concern: Companies often maintain small margins between the cost of goods and profits. There is fear that using crypto means getting hit with lots of fees when converting to fiat.
The Response: Converting crypto can be affordable, but other options exist, too. Paying for services like shipping using crypto is a great way to maintain the value of crypto payments and instantly put profits to use.
As you can see, there are valid reasons for businesses to consider crypto despite initial concerns. Each potential issue has a solution. Most companies that decide to look into crypto find that the upside is worthwhile, and most challenges are overcome with education and adoption.
About Converting Crypto to Fiat as a Business
Accepting crypto payments and converting them to fiat is easier than you might think.
Usually, a business can set up a payment processing account that integrates with its eCommerce website, acting as an all-in-one solution for its crypto payment gateway, processing, and conversion.
This not only makes it seamless to accept crypto payments, but it also locks in the value of the transaction so there isn’t added risk in losing value if crypto prices fluctuate. Business owners also have the option of holding on to some, or all, of their crypto to use for business expenses or in the hopes of long-term gains.
Fees for Converting Crypto
Business owners worry about added fees for converting crypto to fiat. Fortunately, these fees are minimal: usually around 1% of the price of the transaction, up to around 2%, depending on the volume of conversions needed.
There are low withdrawal fees when a business wishes to send crypto from one account wallet to another. It’s important to keep current with the tax laws; crypto is treated like a capital gain when it is sold or used for other purchases.
Who Should Use Bitcoin Postage?
Using Bitcoin Postage to pay for shipping is ideal for anyone looking to use crypto for everyday tasks; it’s a great option for companies with shipping expenses.
Bitcoin Postage can be used to send a single package, but we’ve also placed extra attention on providing businesses what they need by offering features that assist in batch purchases and integrating your eCommerce crypto payment platforms. When you pay for shipping using Bitcoin Postage, there is no extra fee; our prices are the same as shipping directly with your favorite carrier.
Read our step-by-step guide on how Bitcoin Postage works to see how easy it is!
What Delivery Services Accept Bitcoin as a Payment?
Even though major carriers have been cautious about stepping fully into the crypto space, each one is exploring how crypto and blockchain can help them innovate their operations.
Does Fedex Accept Bitcoin?
FedEx doesn’t currently accept crypto payments for shipping services, but the organization is proactively invested in supporting innovation and cutting-edge technologies like blockchain and cryptocurrencies.
FedEx is a founding member of the Blockchain in Transport Alliance (BiTA) and is developing a set of industry standards for blockchain use, including logistics for storing data for dispute resolution and other purposes.
In its published paper, The Early Adopter Effect European SME Export Report, FedEx discovered that small-to-medium-sized enterprises (SMEs) that are early adopters of technology like blockchain and cryptocurrencies are significantly more likely to have higher revenue and achieve international success.
Does UPS Accept Bitcoin?
UPS doesn’t take crypto payments directly for its shipping services, but the company has shown interest in Bitcoin in the past. In 2018, it filed for a patent for a locker bank system that could use Bitcoin as a method of payment. This doesn’t mean UPS is on any kind of track for taking crypto payments directly, but it shows that they aren’t opposed to thinking outside the box in clever ways to incorporate crypto into their operations at some point in the future.
Does USPS Accept Bitcoin?
The United States Postal Service (USPS) doesn’t currently accept crypto payments directly, but Bitcoin Postage provides this as a service, allowing you to pay for your shipping labels with the USPS, UPS, FedEx, and other carriers.
Regardless of how you need to send your packages, they have a solution for you to easily and instantly use your Bitcoin, Litecoin, or Monero for shipping.
The Good News: Use Bitcoin Postage to Ship Your Products
The good news is it doesn’t matter that these major carriers aren’t currently taking cryptocurrency payments—because Bitcoin Postage fills that void!
Bitcoin Postage is a privacy-focused crypto company that’s been around since 2017. We’ve provided companies and individuals with over two million labels each year, serving over 12,000 active customers. Learn more about Bitcoin Postage on our FAQ page.
How Bitcoin Postage Works
Use Bitcoin Postage to pay for your shipping needs with cryptocurrency. We make it easy to turn crypto profits into a great solution for expenses while embracing privacy, security, and fast no-nonsense transactions.
Questions?
Send us an email at bitcoinpostage@tutanota.com, and we’ll get right back to you!