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Accepting cryptocurrency as a payment method has become popular among small businesses. This revolutionary step is possible with affordable and easy-to-use platforms and applications. To accept crypto as a business, one needs to sign up for a cryptocurrency account that can be through a wallet or payment gateway. In other options, merchants can put a QR code scanner to accept Bitcoins in person.
This article will cover how a business properly accepts crypto payments by following some simple steps.
Businesses can accept payments in any form they want, but with crypto, the process is simplified and done with minimum effort.
Crypto is a debatable topic and quite volatile; for this reason, the legalities associated with its payment method will continue to change in the future. However, some of the basic regulations are:
• Observe the state law for crypto investors:
When you are willing to accept crypto payments, you must have your account to get Bitcoin and other cryptocurrencies. This account makes you an investor by default, so in that case one needs to comply with the crypto regulations in their state. By following this, they can make fair trades and remain legal by following the rules of government.
• Follow the crypto platform policy:
Keep track of your service provider’s website, check for the countries it supports, and review user agreements. Many such crypto platforms are not legal in the US, although you can convert or withdraw your savings in US Dollars but can’t use them for trade or exchanges. Hence, knowing about the platform before using it is always essential.
Before going for either of the options, get clear on whether you want to receive your crypto payments in their original form or as fiat money. Once the platform is chosen, go through the steps, create your account, and set it up per the guidelines. Every provider has some specific methods for their softwares, and all of that starts by downloading it.
If we see the general guidelines, crypto wallets are helpful if you want to collect, store, and use crypto for business or yourself. Crypto payment gateways came in handy when you wanted to accept crypto payments but needed them to be converted into traditional fiat money. Many popular Bitcoin payment solutions like Speed also provide the feature of wallets.
Wallets are convenient as there are no transactional charges and are also considered secure in terms of storage; cold storage wallets are most reliable in such conditions. For trade purposes, both software and hardware wallets are useful, and you can operate them anywhere on the go with your digital device.
Crypto payment gateways work similarly to crypto wallets but have multiple added functionalities. They are less secure in comparison to wallets and charge high fees for currency conversion but, at the same time, are easier to set up and provide loss protection. A pool of such providers is available, but one must choose from top crypto payment gateways for better reliability and secure transactions.
Now, when you are all set with the wallet or gateway of your choice, add the crypto payment option to your website. For integrating the wallet in the checkout process, you can go with two main approaches,
• With open source API: If your crypto platform offers you open source APIs like Speed, you can integrate them with your website using custom HTML code. This is quite preferable for businesses due to an upside control over the checkout section’s look, feel, and functionality. It requires minimal technical resources that can be arranged by small enterprises, too.
• With plugin or app: It depends on the e-commerce platform; if the integration is available, then one can opt for it. This makes the overall process a bit easier as they cover all the technicalities associated with it. Just download the plugin or app and install it on the website. Many advanced solutions like Speed provide plugins for your websites to accept payments with ease.
Crypto payment gateways can be added to online stores depending on your e-commerce needs. For instance, if any two platforms come with built-in integration of receiving payments, then the one with a step-by-step guided setup can be easily integrated rather than the other one.
You can make the in-store experience of your customers better by allowing them to pay in cryptocurrency. There are multiple options on many platforms to handle in-person payments. For in-store checkout, consider adding a One QR for scan and pay option, or you can integrate payments with the mPOS application and operate with your existing system.
By following these steps, you will be able to accept online as well as offline crypto payments for your business.
There are several reasons why business owners want to accept crypto payments. Some of its generic features are well known, like being a global currency, decentralized, and many more. However, certain features save time and money for the organization.
• Save money on credit card processing fee: Generally, the fee applied on a credit card transaction is between 3 to 4 percent; this creates a significant expense for merchants. For example, if a merchant receives a payment of $1000, then $300 from it will go into the processing fees. In these cases, the owner has to find ways to cut down the cost. In contrast, Bitcoin and other crypto transactions do not require any processing fee.
However, when payments are made through crypto payment gateways, the merchant will charge a 1% fee.
• Easy to transact with international customers: When crypto is offered as a payment method, it is easy to transact with global customers without paying fees. When a secured payment option is provided, it gets easier for customers to pay you.
• No chargebacks or disputes: Bitcoin or crypto payments are transparent and settled for once and all. No customer can claim a chargeback over the network, and there is no means to deal with payment disputes.
There are mixed reviews on how accepting crypto in your business can boost your average transaction amounts and encourage customers to make larger purchases. Though this can vary based on the demographics of the shoppers, certain benefits and disadvantages are much more straightforward when it comes to small retail businesses.
| Pros | Cons |
|---|---|
| By accommodating more payment types, more sales will be captured worldwide. | Can be subjected to capital gains taxes. |
| Better conversion rates with fast and easy online transactions. | Limited when it comes to regulations. |
| Low payment processing fee as compared to other types of payments. | Volatile, that leads to unpredictable valuation and rate of exchange. |
| With crypto, there is no risk of chargebacks. | There are some susceptible cyber security threats. |
| Simplifies international selling and currency conversion. | Requires tech setup for offline acceptance. |
Small to high-risk businesses are also compatible with Bitcoin and other cryptocurrencies that traditional banking systems do not support.
Still, many people take crypto as a futuristic trend that will only comply for a short time, while others are going all in for this new-age digital currency. As per the market data, the majority of the merchants in the US have started accepting cryptocurrencies as a convenient mode of payment for their businesses. However, a tiny portion of the small enterprise adopted this. Regardless of the industry’s size, learning to accept crypto payments for your business will boost the conversion rate and keep you in the competition’s lead. This global currency will benefit the early adopters, who will be ahead in their futuristic financial goals.
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