As technology improves, so does the way we conduct business. As a result, several options are now available for businesses that want to accept crypto payments, which will only likely increase in the future.
It is estimated that by 2023, the global crypto ATM market will reach $145 million. So, if you’re a business and are not yet set up to receive crypto payments, now is a great time to start.
In this article, we will discuss:
- What are Crypto Payments?
- Why Should Your Business Accept Crypto Payments?
- How to Start Accepting Crypto Payments?
Let’s dive in!
What are Crypto Payments?
Cryptocurrency is a digital or virtual asset designed to work as a medium of exchange. Cryptocurrencies use decentralized control as opposed to central banking systems. Bitcoin, created in 2009, was the first decentralized cryptocurrency. Since then, various other cryptocurrencies have been designed. These are frequently called altcoins, as a blend of alternative coins.
Crypto payments are payments made in cryptocurrency rather than fiat currency (a country’s legal tender). So, for example, if you were to buy a cup of coffee with Bitcoin, the payment would be considered a crypto payment.
Fiat currency is physical money, such as paper bills and coins. In contrast, cryptocurrency is digital and uses cryptography for security. In addition, cryptocurrency is decentralized, which means it isn’t subject to government or financial institution control. Bitcoin and other cryptocurrencies are stored in a digital wallet.
Why Should Your Business Accept Crypto Payments?
If you’re on the fence about whether or not your business should start accepting crypto payments, here are a few reasons that may sway your decision:
You’ll Be Ahead of the Curve
Cryptocurrency is growing in popularity, and its use is only expected to increase. By accepting crypto payments now, you’ll be ahead of the curve and prepared for the future.
Lower Fees
Transaction fees associated with credit cards can eat into your profits. However, when you accept crypto payments, these fees are significantly lower.
Get Access to a Bitcoin Escrow Service
When you conduct business online, it’s essential to have a way to ensure that both parties fulfill their obligations. A Bitcoin escrow service does just that. This type of service adds an extra layer of security by holding the buyer’s funds until they receive the goods or services they paid for.
How to Start Accepting Crypto Payments?
Now that we’ve discussed crypto payments and why you should start accepting them, let’s talk about how you can start receiving them.
Step 1: Choose Which Cryptocurrency You Want to Accept
The first step is to decide which cryptocurrency you want to accept as payment. While there are over 4,000 cryptocurrencies in existence, the most popular ones are Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
Step 2: Set Up a Cryptocurrency Wallet
Once you know which cryptocurrency you want to accept, you need to set up a digital wallet to store it in. A digital wallet is similar to a physical wallet in that it allows you to store, send, and receive cryptocurrency. However, unlike a physical wallet, a digital wallet is stored electronically.
Different types of digital wallets are available, so it’s essential to do your research to find the best option for your needs. Some wallets are designed for specific cryptocurrencies, while others can be used for multiple types of cryptocurrency.
In addition, some digital wallets are online while others are offline. Online wallets are stored in the cloud, making them more convenient to access and vulnerable to hacking. On the other hand, offline wallets are stored on your computer or a USB drive, making them less convenient to access but more secure.
Step 3: Choose a Payment Processor
Once you have a digital wallet set up, you need to choose a payment processor. A payment processor is a service that allows businesses to accept and process payments. If you’re already using a payment processor for credit card payments, you may be able to use the same one for crypto payments. However, not all payment processors offer this option, so it’s important to do your research beforehand.
There are also crypto-specific payment processors available. These services are designed specifically for businesses that want to accept cryptocurrency payments.
Step 4: Start Accepting Payments
Now that everything is set up, you’re ready to accept crypto payments! There are a few different ways you can do this.
- The first option is to use a payment gateway. A payment gateway is a service that allows customers to pay with cryptocurrency on your website. To do this, they simply enter their wallet information when they checkout.
- Another option is to use a point-of-sale system. With this method, customers can pay using their cryptocurrency of choice by scanning a QR code at the point of sale.
- Finally, you can also accept payments via email. Simply provide your customer with your wallet address and instruct them to send the payment to that address.
The Bottom Line
Cryptocurrency is here to stay, and more and more businesses are starting to accept it as payment. So, if you’re not already doing so, now is the time to start! Accepting crypto payments can lower your fees, improve your security, and get ahead of the curve.
