Ten years ago, if you were told that a client wanted to pay with some virtual money rather than credit cards, you would probably think it was a scam or the user wanted to hide his incorrect credentials. However, after years of developing blockchain technology, the scenes have changed.
Paying with cryptocurrencies has become popular in the last few years, and some users prefer decentralised coins over credit cards or online bank transfers. This becomes prominent for businesses that want to avoid chargeback frauds and hefty transaction fees of financial institutions and processors.
Bitcoin, Ethereum, Tether and other cryptocurrencies are widely accepted across different business sectors, such as trading platforms, gambling, e-commerce, digital products and more. Let’s discover the benefits of paying with cryptos and how to add them to your website.
Crypto Transactions for Businesses
Paying with cryptocurrencies is useful for individuals and businesses. Users avoid bank service and exchange fees by sending coins directly to the receiver’s wallet, while companies enjoy quick settlements and low transaction costs.
Businesses are increasingly adding Bitcoin to their payment methods, allowing users to connect their wallets to pay with crypto or providing a QR code that carries your storage address, where users can scan the code and insert the desired amount to send the money.
This option gives companies more ways to receive payments and expands their reach to target clients with specific requirements, such as crypto communities and users who prefer decentralised payments to avoid bank tracking and transaction fees.
There are more advantages to accepting crypto payments for your business.
- Low transaction fees because, unline bank transfers, there are fewer intermediaries involved in the transaction.
- Faster settlements since blockchain transactions are direct and almost instantaneous with minimum human interaction.
- Expanding your business reach to more markets while reducing exchange rate barriers.
- Holding your assets in multiple currencies to avoid unexpected economic turmoil.
Step by Step: Adding Crypto Payments to Your Online Business
Adopting a cryptocurrency method to your website for the first time can be challenging. It is relatively newer than traditional payment options and is more technologically complex. So, here’s what you can do.
- Review The Regulatory Landscape in Your Location
Regulations on virtual assets change constantly, and before you launch any business that is associated with transacting or dealing with cryptocurrencies, you need to know what the rules say.
You might need to obtain a special license in order to facilitate crypto transactions or register your company with a state agency to become legally capable. Additionally, the regulations might indicate that you can only transact with selected currencies. In this case, Bitcoin, Ethereum and USDT are the most common options.
- Find and Integrate a Reliable Crypto Payment Gateway
Gateways are bridges that connect your website with the client’s payment method. For example, traditional bank gateways initiate interaction between your client’s issuing bank and your website, handling the flow of money between sides and ensuring the fulfilment of the transaction to provide the service.
When it comes to the decentralised economy, crypto gateways interact with the customer’s wallet, ensuring there are sufficient funds and passing the transaction to the blockchain to verify and release the money to the receiver, that is you.
Finding a reliable payment gateway provider is crucial because there are several companies that charge different fees and services. Therefore, review their offerings and prices before choosing a payment provider.
- Add API Integrations to Your Checkout Page
API integrations increase the usability and improve the interface of your checkout page. Application programming interfaces are used to pass and process information between servers to provide a certain utility.
For example, you may integrate an API to give your clients a look at the cryptocurrency prices, allowing them to understand the money value they are spending by paying in a particular virtual currency.
Additionally, you can add a tool that allows your clients to do on-spot exchanges between crypto and fiat currency, increasing their time on your website and improving your customer experience.
- Adopt a Settlement System
After receiving a payment from your client, to want to keep the money in crypto or USD and EUR?
Choosing the settlement model allows you to keep track of transactions on your website with filtering and reporting features. Moreover, you can choose the currency of your received payments, whether you want to store them in cryptos or immediately exchange them for a given cryptocurrency or stablecoin.
Conclusion
Adding a crypto payment option on your website allows you to explore a new customer category of digital communities and crypto enthusiasts. Not only that, you can also benefit from lowered transaction fees and faster processing using blockchain rather than the centralised banking system.
However, offering payment with cryptos requires thorough understanding the legal environment and integrating the right gateway that allows you to receive and store your payouts efficiently.
