How your business can accept crypto payments
Cryptocurrency is becoming ever-present as an alternative payment method for online merchants. However, for many smaller online stores, accepting crypto payments can be a daunting and unfamiliar task. Fortunately, it’s easier than it seems.
In our previous article, we discussed the many advantages adopting crypto payments could bring to your online business. In this article, we’ll get into the details of how to accept cryptocurrency payments on your site.
Option 1: Direct crypto payments
You can accept direct cryptocurrency payments without an intermediary. In this case, you will need to set up a personal wallet. However, it can be quite inconvenient and risky if proper precautions are not taken.
The first step is to download and install your “hot” crypto wallet for everyday use. Do not use it to store large amounts. The best option is to use a multi-coin wallet, such as Freewallet or Lumi, which supports all major cryptocurrencies.
The next step is to set up your “cold” wallet. This is where you will keep the majority of your crypto. Popular cold wallets include Ledger and Trezor. You should transfer the extra funds from your hot wallet to your cold wallet at the end of each day.
Then you have to integrate the public key address or QR code of each crypto you wish to support on your business platform. The “receive” option in your wallet will provide you with an address and QR code that you can use on your platform.
If you choose the direct crypto payments option, you will need to monitor all processing activities manually. That includes supervising confirmations on the blockchain, tracking transactions, generating invoices. You also have to set up an account on a credible exchange, such as Bittrex Global, to convert your crypto to fiat currency.
Using this set-up is quite complex for beginners and requires good technical knowledge of crypto. Thankfully, there are more straightforward options available.
Option 2: Crypto payment gateway providers
One of the easiest options available is a third-party payment processor. It works similarly to credit card payment operators. Traders can create an account on their platform to manage all of the complex processes associated with a personal wallet.
All you need to do as a business owner is follow the step-by-step guide. When the gateway is integrated into your structure, the provider will act as an intermediary allowing customers to pay with crypto. It can automatically convert it into a fiat currency which you will receive as payment.
Some of the popular crypto payment processors on the market are Indacoin and Crypto.com.
As a business owner, you have to do your research and choose a platform that is best for you. Some important factors to consider include:
Transaction fees. Double-check how much the transaction fees will be. They shouldn’t be more than those charged on credit cards. Most crypto payment providers will offer fee rates at around 1 percent for each transaction.
Fiat currency options. Make sure your payment provider can convert crypto into your chosen fiat currency. If it is not supported, you may be charged conversion fees. Most providers allow automatic conversion into major world currencies (e.g. US dollar, euro, UK pound) but don’t always support less popular currencies.
Funds transfer frequency. If you need to receive your funds daily, be sure the payment provider you choose offers this solution. In some cases, it takes several days to pay out funds to merchants and it can be problematic for certain types of businesses.
Supported countries. Due to tight and varying cryptocurrency regulations, payment providers may only offer their services to companies located in specific countries. Make sure the country your business is operating in is supported before beginning the integration process!
Option 3: Using a third-party hosting site
Another popular method for accepting crypto payments is to host your online store directly on a third-party commerce site. Popular sites, such as Exeno, support various crypto payment options. This allows merchants to set up their stores directly or bootstrap their existing platforms and benefit from the infrastructure.
This method is ideal for small businesses still trying to find their feet. It not only provides options for crypto payments, but allows business owners to build their platforms from scratch with exposure to a unique market. You can find a complete guide on how to set up an online store with Shopify here.
Option 4: Doing nothing
As cryptocurrencies enter the mainstream, many established payment providers, such as VISA and Mastercard, are looking to integrate crypto payments. So, in the future, merchants already using these providers won’t need to take any extra steps to accept crypto!
The recent announcement concerning such adoption came from PayPal. On March 30, the online payment giant announced that it would enable cryptocurrency checkouts. This means that many online merchants, won’t need to do anything. If PayPal is integrated into your platform, customers will have the option to pay with crypto. PayPal will automatically convert the funds and send you the fiat currency equivalent.
There are multiple options available, both complex and straightforward when looking to integrate cryptocurrency payments into your online business. As this new trend continues its infiltration of the world of eCommerce, making sure your business is crypto-friendly now could be a significant advantage in the future.
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