If you’re a business owner looking to tap into the over 300 million people across the globe using cryptocurrencies, you’ve come to the right place. In this piece we’re covering how you can go about incorporating cryptocurrencies as a payment option.
Why businesses are integrating crypto payments
Whether you want to accept Bitcoin payments or crypto payments, incorporating digital currencies into your business is becoming more and more common. Here is why more businesses around the world are opting to integrate modern payment options alongside their traditional ones:
- Faster Settlements
Do to the nature of blockchain technology, with crypto payments, once the transaction has been executed the funds will (almost) immediately appear in your crypto wallet. Some traditional payment systems can take several days (for international payments)
- Lower Fees
Card processing companies charge anywhere from 1% - 3% plus an additional charge for using that service. Other payment services, like PayPal for example, charge even more. While the transaction fees structure is dependent on the specific network, cryptocurrencies charge a minimal flat rate, with no added hidden costs. When making or accepting crypto payments, ythese fees are communicated upfront.
- Attract new customers
With over 300 million people using cryptocurrencies, expected to rise to 1 billion by the end of 2022, there is now a much wider audience that your business can tap into. Tap into these new customers by adding crypto payments to your payment options and attract a new demographic.
- Reduce Fraudulent Charges
Fraudulent card activity costs the global economy over $120 billion each year. These chargebacks can range from a number of reasons, from technical issues to outright fraud. With cryptocurrencies, transactions are final and cannot be reversed due to the nature of blockchain technology facilitating them.
What does a business accepting cryptocurrencies entail?
First, you will need to have a proper understanding of cryptocurrencies, and an idea of which cryptocurrencies you would like to accept. While most businesses new to accepting crypto payments might opt for Bitcoin payments, there are several alternative options with varying features. Bitcoin Cash, for example, provides faster transaction times at a lower cost. Conduct thorough research and explore what other companies in your industry are doing.
Next, you will need to create an account with a payment gateway, the crypto equivalent of a payment processor. This gateway will allow you to easily transfer crypto to fiat and vice versa. Ensure that the platform you opt to use is reputable, has high levels of security, and is in line with the regulatory requirements. If you decide to accept Bitcoin payment, you need to ensure that everything you are doing is above-board.
Once you have chosen your payment gateway and set up the account, the last step is to let your customers know. Whether you do this through a marketing campaign or simply incorporate the crypto QR code on your website or in-store, this is an excellent opportunity to get the word out there and create a buzz around your business now accepting crypto payments.
A crash course in cryptocurrencies
For the sake of getting you fully prepared to accept crypto payments, we've included a short crash course on cryptocurrencies. The first cryptocurrency to come into existence was launched in 2009 as a response to the global financial crisis. The still-anonymous creator, Satoshi Nakamoto, wanted to create a global digital currency that would allow each individual to take control of their own funds, and not have to rely on governments and centralized financial institutions to do so.
A few years after Bitcoin entered the scene, several other cryptocurrencies started emerging, many of which used the same infrastructure. Bitcoin Cash and Litecoin are examples of this, offering the same service with several tweaks.
While adoption was slow to take off, crypto payments eventually integrated into the mainstream financial sector as several companies started catering to the crypto crowd. While the markets still go through the typical economic cycles, cryptocurrencies and most notably crypto payments are here to stay.
Closing thoughts
If you’ve decided to accept Bitcoin payments and propel your business into the crypto-sphere, the process is likely to be much more simple than one would initially imagine. The best part about deciding to accept cryptocurrency payments is that you don't need to forgo your traditional payment methods. Cryptocurrency works perfectly alongside your current point of sale system and offers an alternative online payment solution.
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