Crypto-Processing for Business. How to Accept Crypto on Your Site?
One of the ways to show your customers that your business is not afraid to embrace modern technology is to offer them flexible payment methods. As more shoppers are using cryptocurrencies to make payments at stores, this might be the right time for you to outperform your competitors by accepting crypto on your site. Read on for the essential information you need to offer Bitcoin, Ether, and other digital coins as payment methods.
Should You Accept Crypto Payments on Your Website?
The first and most important question to answer when considering adding crypto payments to your site is whether it will be in your best interest. If your customers are not cryptocurrency users, you may want to put a hold on taking this strategic step. However, if you are sure that they are crypto holders or that your competitors are already accepting Bitcoin, Ether, and other digital coins, then you should add this payment option to your website.
Crypto enthusiasts and users of blockchain-based digital currencies are young and youthful people. More than 90% of them are under the age of 40. Therefore, your business might profit from adding crypto to your site if your customers are Gen X, Millennials, and/or Gen Z.
An innovative payment method like cryptocurrency is not appealing to the elderly population, which is composed of people over the age of 60. Avoid this payment method if your target customers are in the Baby Boomer generation (people born between 1946 and 1964)—it might be a waste of investment for you.
Ways to Accept Crypto Payments on Your Site
Basically, there are two popular ways to enable crypto payment options on your e-commerce platform: you either connect it directly or get help from a specialised payment service provider. We have more information about them for you below.
Using direct payment
You can set up direct crypto payment for your e-commerce business using your crypto exchange or wallet. The first thing to do is generate a QR code that links to the alphanumeric string by which your wallet can be recognised. After that, you need to send the QR code to your customers whenever they need to send you payments in crypto.
"Pay by link" is the method for establishing this connection and managing the payments. We encourage you to learn more about this technology on our website.
Note that accepting crypto payments via a shareable link or QR code is not ideal for big merchants who have to manage many transactions. The reason is that this method requires you to do a lot of administrative tasks. You will have to manually record your crypto transactions and try to account for them. Also, frequently converting crypto to cash might become stressful and financially unprofitable if you do not intend to keep your digital currencies in crypto savings.
Getting help from a third-party payment processor
When it comes to accepting crypto, it is better to use a third-party payment processor than to share a direct link. While this might cost you a fee of about 1% of the transaction, it saves you from the administrative stress involved in using direct methods. Such work is also taken care of if your payment processor and accounting software are integrated. Also, you won't have to worry as much about tracking gains, losses, or fluctuations in price if you aren't "holding" cryptocurrency.
Furthermore, some processors analyse rates on many exchanges to determine the best rate at the moment of sale. The recommended rate is up for discussion between the consumer and the business. At that rate, the sale is finalised if all parties agree.
How to Choose a Crypto Payment Processor: What to Know Beforehand
Choosing a crypto payment processor is a strategic decision. Hence, it must be taken with care. First, you need to determine your cryptocurrency requirements as a business—this is an internal factor analysis. Do you want to accept only Bitcoin or many other popular cryptocurrencies? Do you intend to manage bookkeeping and accounting manually or automatically with the help of specialised tools?
Your internal factor analysis will not be complete without due consideration of the tax implications. So, do you plan to hold crypto, and does the law of your country require crypto holders to pay taxes? It is your responsibility to answer these questions.
Furthermore, you need to obtain adequate information about the third party. Find out certain essential pieces of information, which should include:
- the variety of currencies supported by the service provider (fiat money and cryptocurrencies);
- the ease of use of the user interface;
- the transaction fees to be paid;
- the frequency of payout (daily, or within three to five days is typical);
- the level of fraud protection available to users;
- the availability of crypto cash-out methods;
- the various countries where it is supported and legally allowed to operate;
- the security and safety of the payment service;
- and the quality of customer support.
You can obtain the information you need to choose a crypto payment processor from various sources, which include its website, user reviews, reliable overviews, discussions at fintech conferences, and expert opinions. In all, you should ensure you are getting the best services at the most affordable cost.
Best Services for Merchants to Accept Crypto
There are currently a few credible crypto payment processing services for merchants who want to accept cryptocurrencies. This is probably because political support for the use of blockchain-based digital coins is still far from adequate.
Many merchants who would like to accept Bitcoin, Ether, Litecoin and other digital tokens on their websites are prevented by bans on the use of cryptocurrencies as legal tender or medium of exchange. The crypto industry is hoping for more legal support in the future.
If crypto payments are not banned in your country, here are the best payment processors to choose for your business:
1. Coinbase
Coinbase Commerce is a self-managed product of the Coinbase crypto exchange. Through this offering, you can accept payments in fiat money and cryptocurrencies, whether you manage an online business or an in-person store. The service is fast, flexible, and global in its operations.
The Coinbase Commerce product helps merchants create flexible invoices, custom checkouts, and manage easy transaction reporting. With its turnkey API, you can create workflows and experiences that better align with your business model. All these are available for a very low transaction fee of just 1%.
Coinbase's crypto payment acceptance tool is integrated with popular e-commerce stores such as WooCommerce, Shopify and Jumpseller. Your online business can be the next to join their portfolio. Use this link to contact Coinbase now to discuss a custom solution for your business.
2. BitPay
BitPay is a digital currency processor that specialises in helping businesses accept or send payments worldwide in fiat money and cryptocurrencies. It enables merchants to eliminate chargebacks and the problems that come with them as they will have to accept cryptocurrencies, which are irreversible payments.
Through its massive scalability offering, BitPay enables businesses to conduct microtransactions. Also, it facilitates the seamless management of frequent payments. Customers can use the BitPay digital wallet to take control of their payments in Bitcoin and other cryptocurrencies.
BitPay supports all kinds of crypto wallets, and it is accessible in more than 200 countries and territories. It currently works with more than 100 crypto wallets and over 15 top digital coins without charging high fees. The range is usually between 1% and 2%, plus US$0.25. Its transaction fees vary according to the cumulative monthly volume or transaction amount and the risk level of the business customer. So, high-risk merchants pay higher fees than low-risk ones.
With BitPay, freelancers, digital nomads, small businesses, and large corporations can accept crypto payments through different means. Depending on your preference, you may use your website, send crypto invoices via email, or accept Bitcoin and other cryptocurrencies (in person) on your mobile device or in your retail store.
BitPay has business customers in different industries. Some of the famous companies that accept crypto as a form of payment with the support of BitPay are Shopify, Microsoft, Ampex, and airBaltic.
Go to BitPay now if you would like your customers to settle you in crypto, fiat money, or a mix of both types of currencies.
3. PayPal
PayPal is a fintech company that has become one of the best international money transfer wallets and payment processors over the years. Through its innovative and secure services, the company enables businesses of all sizes to make sales and get paid fast. It supports fiat money and crypto transactions, whether online, on the go, or in-store.
PayPal is a great choice for merchants who need online checkout, invoicing, instalment payments (buy now, pay later), and POS systems. It helps them provide their customers with a variety of payment options, which include debit and credit cards, shareable links, and QR codes. Also, the service integrates with major e-commerce platforms, such as BigCommerce, WooCommerce, Shopify, GoDaddy, and Wix.
Using PayPal, you can get digital tools and reliable services for accepting payments in different currencies. PayPal provides its business services with support for fiat money and cryptocurrencies at a competitively low price. For example, the transaction fee for online credit and debit card payments is 2.59% plus US$0.49 per transaction.
Follow this link if you would like to use PayPal to accept payments via crypto wallets and crypto cards securely and safely.
4. Crypto.com
Online merchants can accept cryptocurrencies with the support of Crypto.com. With a few lines of code, your developers can use the Crypto.com Pay API to create custom checkouts for your business.
You use Crypto.com to accept payments in Bitcoin, Ether, and other cryptocurrencies from more than 50 million people using ERC20 wallets across the world. There is no setup or transaction fee for merchants who choose to join Shopify, nopCommerce, PrestaShop, WooCommerce, OpenCart, and several other online business platforms in using Crypto.com for accepting crypto payments.
Furthermore, your customers will love paying with crypto on your site. Why? The reason is that Crypto.com will offer them up to 10% back in CRO (its native token).
Visit Crypto.com now to get your merchant account and start accepting crypto payments.
5. Binance
Binance is one of the best crypto exchanges in the world. Through its Binance Pay product, it provides strong technological and operational support for merchants who desire to accept crypto payments. The service supports more than 50 different cryptocurrencies and stablecoins.
Binance Pay enables businesses to become crypto-friendly, whether they operate online or offline. It gives them full control of their checkout experience through the Binance Pay Payments APIs. To accept payments, they can share their QR codes with their customers, who will have to use the Binance app to scan them and send the crypto. Alternatively, merchants can simply share their unique Pay IDs with their customers, who will type or paste them into their apps to make the crypto transfer.
There is a long list of companies already accepting crypto payments through Binance Pay. They include ShopDutyFree, Egycards, Shopping.io, Bitrefill, Coinsbee, Coingate, Travala.com, Uquid Digital, Bolt+, Novelship, TopUp Balance, Alchemy Pay, Coincards, Hero Awaken, Gotok, Five Guys Bahrain, MooGold, Digital Flyer, Farvater Travel, Futuelink, Smart Vibes, Bitskins, Yummy Rides, CryptoMate, Lost Relics, Exeno, Smile Shop, and Cybertino.
Create a merchant account with Binance now so that your business can become crypto-friendly. Attract new customers with the help of Binance Pay. This is your chance to start accepting Bitcoin and other cryptocurrencies.
FAQ
You can accept Bitcoin and other cryptocurrencies using specialised payment processors like Coinbase, BitPay, and PayPal. They offer easy conversion and seamless payment management. However, if you prefer not to use a third party, you can set up direct crypto payments using your crypto exchange or wallet. The process involves generating a QR code that links to your crypto address. Next, you share the QR code with your customers so that they can use it to send you payments in crypto.
Yes, it is a good idea to accept crypto as a payment method. However, you should ensure that your customers are crypto holders and that it is legally allowed in your country.
Examples of businesses and organisations that accept crypto payments are Shopify, Ampex, Microsoft, Newegg, airBaltic, Twitch, WeWork, Camping World, American Red Cross, Take-Two Interactive, Ledger, Takeaway.com, Mythical, Jomashop.com, Namecheap, Eight Sleep, and AMC Theatres.
Yes, PayPal supports the transfer, sending, and acceptance of cryptocurrencies, such as Bitcoin, Litecoin, and Ether.
The advantages of accepting payments in cryptocurrency include lower fees than regular options like credit and debit cards; the attraction of new customers who are cryptocurrency holders; and the prestige of supporting innovative payment methods.
Yes, some traditional banks and neobanks accept cryptocurrencies. However, there are only a few. You can find examples of them in our article on crypto-friendly banks.
The Bottom Line
The use of Bitcoin and other cryptocurrencies is gaining popularity in different parts of the world. Forward-thinking merchants with innovative and futuristic business models are already accepting this new payment method. You too can capitalise on this by analysing the needs of your business and choosing the right payment processor to add crypto to your settlement options. We hope that you have found this guide helpful.
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