Nowadays, crypto is becoming more and more popular, mainly because it is being accepted by an increasing amount of companies and businesses. Most people have an idea of what it actually is and how it works, but questions may arise – especially if you have a business and are thinking about accepting crypto as payment. How does it work? How can your business accept crypto as a payment? Who accepts cryptocurrency? In the following article, all the questions will be answered.
Cryptocurrency and crypto-cash
Crypto’s popularity is on the rise: according to a study by SoftwareFindr, 4.68% of people born in the 80s and 90s have already invested in cryptocurrency. It might seem like a low number, but it continues to grow. As part of this trend, El Salvador became the first country in the world to adopt bitcoin as legal tender, and that’s not even their first step into crypto: in March, Strike released its mobile payment app in the country Central American, which quickly became the number one downloaded app.
Bitcoin itself is the very first representative of crypto cash, which is a sub-branch of various cryptocurrencies. Cryptocurrency is money that does not exist in a physical format: it is created and stored virtually. While many types of this virtual money are kept in a closed economic system, there are other cryptos specifically created for buying physical products and services. This is crypto money.
As the name implies, crypto-cash is based on a cryptic formula that cannot be counterfeited thanks to complex encryption and security measures (such as block-block transactions, proof-of-work). Many people are obsessed with the idea because no one has a direct influence on it: neither organizations, nor countries, nor even the stock market. On the other hand, crypto influences movements on the stock market (e.g. Tesla 2020 stock price changes due to Elon Musk crypto tweets).
How to accept crypto payments?
As crypto-cash becomes more and more popular among potential clients, business owners start to implement it in their processes. Using this payment method is possible not only for larger companies but also for smaller ones.
Before you can accept this currency, you need to understand the tools and processes needed for a cryptocurrency payment. A checkout system, buttons for payment, cryptocurrency e-commerce solutions, and invoicing capabilities have to be added, but it is not as difficult as it may sound. When you set up one of the crypto payment processors for your company, always make sure that you understand how they work, so you can control every aspect of the checkout process and ensure a great customer experience.
Payments could be done in three different ways: on your website, via e-mail, and in person. The easiest way might be to use PayPal as its ecommerce business platform supports cryptocurrency acceptance. Here are the three most important steps of setting up working a platform.
- It’s important to indicate on the company’s website that it accepts this type of payment. Once the platform is set up, customers who have PayPal wallets will be able to make payment with cryptocurrency; however, as a company, you don’t necessarily receive crypto, you get your actual currency.
- If they choose to pay with cryptocurrency, they will receive a QR code generated by the payment gateway that is scanned by the customer. If you download the application onto your phone, it also works as an in-person terminal.
- Your crypto-ready payment platform calculates the right amount of crypto in any currency. In this case, the QR code is displayed on your device which can be scanned by the buyer.
Who is it for?
Whether you have a large or small business, cryptocurrency is a great option to enhance your ecommerce offering. Restaurants, smaller shops, retail stores, online businesses, and even hair salons can allow customers to pay with cryptocurrency. Payments made with crypto do not go through traditional payment processors, so they’re very fast compared to the same type of transactions you make with a credit card. Rather than paying by credit card, a crypto transaction takes an average of less than 10 minutes.
If you’re worried about how you’ll receive your payment, don’t be, because accepting cryptocurrency is easy: once you set up your digital wallet, the money will be with you within seconds of the payment. The cryptocurrency is easily convertible into your choice of currency, whether it is US dollars, British pounds, or European euros. Once you select the best option for your currency, the money will be directly deposited into your bank account. The payment takes a little longer than the actual cryptocurrency, but you will get it the following business day.
The benefits of being a crypto-accepting merchant
Being a crypto-merchant has numerous benefits:
- Paying online with crypto is cheaper since the transaction fee is usually less than 1%.
- Additionally, crypto companies are open to innovative developments, which is always a positive factor for their customers.
- Since the system is completely automated, you don’t have to worry about calculating the value of your service in bitcoins, as the system will do it for you.
Although it has numerous advantages, to provide a full picture, we list the cons as well. Businesses that accept cryptocurrency might face some issues, such as different regulations depending on the area.
Setting up the right crypto payment system can take time. While it is not difficult to set up a working platform, it is not as simple as setting up a “traditional” payment platform. Although crypto exchange and payment are becoming more popular, it is still a sector that is evolving, so customers who have their own crypto wallets may want to use the traditional way of payment.
To have it or not to have it? That’s the question!
The decision of whether to accept crypto payments online is left up to you, the business owner, since this article does not provide financial advice. Consider asking your customers whether they would appreciate being able to pay this way. Once you receive positive feedback, make sure you keep traditional payment options, since we’re still far from using cryptocurrency exclusively.