Contact us
Updated Jul 31, 2025

Crypto vs Credit: Exploring Alternative Payment Models for Modern Businesses

The world of business and commerce is cutthroat, competitive, and dynamic. One month, you could be cruising along with a steady profit stream and customer base, and the next, you could be deep in the red and figuring out where your business’s foot traffic has gone.

Needless to say, every entrepreneur should strive to optimise and scrutinise every business decision they make throughout their business’s lifespan. One critical aspect of running a business is the invoicing and payment system you plan to set in place.

In Australia and much of the developed world, cash and credit continue to dominate as the top payment options that people opt for when making purchases. That said, global trends have changed course, and technology is starting to make a larger impact on the way we conduct business.

One upcoming technology that’s getting a larger share of the spotlight in recent months is cryptocurrency. This digital asset enables people to conduct transactions without a middleman, creating breakthroughs in the way people buy and sell in business.

This begs the question: Is the rising interest in cryptocurrency something every business should capitalise on? Furthermore, is crypto a serious contender for replacing credit in the long run?

The reality is that crypto and credit adoption aren’t straightforward—they carry subtle challenges and considerations. Let’s take a look at the pros and cons of each payment method.

Why Your Business’s Payment Methods Matter

Before diving into the whole crypto vs. credit debate, it’s important to consider the significance of your business’s chosen payment methods before anything else. 

The payment experience is typically the final stage of the closing process in a sales funnel, and you want to ensure that your customers go through this stage as seamlessly and smoothly as possible.

Here are some reasons why it’s so essential to create a secure and smooth payment system for your business:

  • It strengthens customer trust: A secure and robust payment system allows customers to easily process payments. Having credible payment systems in place, like credit card systems, can help them push through with the deal.
  • It casts a wider net: Having the right payment methods ensures that your target demographic can easily pay for your product or service, regardless of where they’re located.
  • It can reduce abandoned checkouts: A confusing or limited payment process can add friction to the funnel, leading to customers abandoning their cart and your business losing out on a sale.
  • It enables accessibility: It’s much easier to scale and reach your desired community by opting for the right payment system.
  • It future-proofs your business: With the business world evolving rapidly, choosing payment methods that align with the times is crucial to ensure that your company doesn’t get left behind and suffer from being too outdated.

Having the right payment method can play a significant role in influencing the success of your business.

With that being the case, it’s essential to thoroughly consider the pros and cons of each payment method to ensure that you’re making the correct decision when adopting your next payment system. 

It’s also equally important to do your research before opting for a particular payment method. Security is one critical factor you should pay close attention to, and you should always stick with verified trading platforms like Bitcoin.com.au for crypto buy and sell activities to ensure that you’re in safe hands.

Pros and Cons of Crypto as a Business Payment Method

Let’s explore the advantages and disadvantages of using crypto as a business payment method.

Pros

  1. It offers lower transaction fees

Credit card companies typically impose a 2-3% charge for each transaction. This can add up, especially for big purchases in the thousands or more. Specific cryptocurrency tokens bypass this and can offer transaction rates as low as 1%.

  1. Faster payments

Certain cryptocurrencies like Solana are known for having lightning-quick transaction times, faster than even standard credit cards. This reduction of wait time enables transactions to be processed much quicker, creating faster turnaround times.

  1. Global accessibility

Anyone can send and trade cryptocurrency as long as they have a wallet address, crypto tokens, and an internet connection. The payment is also made through a globally recognised and real-time market independent of fiat currency, removing the need for conversions.

  1. Modern brand appeal

Promoting a positive crypto stance on your company can give the impression that your company is forward-thinking, tech-savvy, and modern. This can appeal to a certain brand of customers and generate interest and attention for your company.

Cons

  1. Price volatility

Cryptocurrency prices tend to swing and fluctuate unpredictably. Daily price swings can be as high as 10% of its value 24 hours earlier. This can make the digital asset seem risky to many traditional and mainstream consumers.

  1. Low customer adoption

While the people in the crypto space are enthusiastic and passionate about the technology, there’s still a wide demographic of people who don’t understand what the fuss is all about, or couldn’t care less to try. Penetrating this demographic is near-impossible at this point unless there’s a big change that ripples through the space.

  1. Regulatory complexity

Depending on where your customer lives and where you live, there could be different laws and regulations surrounding the buying and trading of cryptocurrency. Some countries outright ban the use of digital tokens, removing a potential market from paying in crypto to your business. 

  1. No failsafes

Consumers may be deterred from transacting with crypto as it lacks built-in buyer protection protocols. This is unlike eWallet and credit card transactions, which typically offer dispute and refund mechanisms.

If the customers don’t trust your business and have no other choice but to pay through crypto, they may choose not to push through with the transaction altogether.

Pros and Cons of Credit as a Business Payment Method

Pros

  1. Widespread and popular

Credit cards are a trustworthy payment option that everyone is familiar with. If your business offers this mode of payment, your customer will more than likely have a credit card ready to use to finalise the transaction.

  1. Increases sales conversion rate

Credit cards allow users to pay without deducting money in their bank account immediately. This can incentivise them to push through with the transaction, especially for items that cost a lot.

  1. Chargeback protection

Customers feel more at ease transacting with credit cards as they can dispute fraudulent charges. By offering this payment option, customers will be more likely to trust your store.

  1. Easier recordkeeping

Creidit processors can be integrated with accounting tools. This makes record-keeping and accounting works much more streamlined.

Cons

  1. High transaction fees

Popular credit card networks typically charge 2-3% per sale. This can add up quickly, especially if you are selling many products at bulk. 

  1. Processing delays

Funds may take a few days to reach your business account. This can slow down cash flow significantly, hampering operational processes as a result.

  1. Dependency on third-parties

By using credit card services, you’re relying on third parties to ensure that the transaction proceeds smoothly. While it does go smoothly 99% of the time, service interruptions and regulatory restrictions can happen once in a while, which can restrict business operations. 

  1. Chargeback risk

Your business may be more likely to experience chargebacks, which can lead to revenue loss. Many credit card providers favour the buyers in such situations, so this can hurt merchants in the long term.

What’s The Better Payment Method – Credit or Crypto?

With crypto and credit cards being viable options as modes of payment in today’s tech-driven society, this begs the question: Is there one payment method that beats the other?

To put it simply, there’s no single payment method that completely edges out the competition. Each type serves a purpose, and the “superior option” is one that typically best aligns with your goals, customers’ preferences, and operational needs.

If your company serves a demographic that values what’s familiar and easy to use, then definitely opt for credit as the top payment solution for this class of individuals.

On the other hand, if your clients are more tech-savvy and open to the crypto space, then consider drawing them in by accepting crypto payments.

In any case, offering more payment options is typically always the better option. This way, you can make it easier for customers to pay how they want and position your business to withstand the rapidly growing technological world.

Best of luck in choosing your payment gateway!




Author - Suprabha Bhosale
Suprabha Bhosale

Finance Writer

Related Posts