7 Reasons Businesses Should Accept Crypto Payments

There is no centralized system, bank or government that backs it. Nonetheless, it has gained in popularity since its debut, and a single bitcoin can be valued at thousands of dollars. The currency is mainly used for online commerce and long-term investment; however, it is possible to use bitcoin for physical transactions. Our payment widget and B2B solutions allow you to accept crypto payments right away. By nature, cryptocurrency is designed to be decentralized and anonymous. However, some merchants might not be comfortable accepting payment in digital currency; they might not understand how any of it works or be skeptical about the system.

accept crypto in your business

However, what’s apparent is that headlines play favorites to household names. For other businesses that want to hop on the trend, it’s a question of how to start. Use a third-party vendor or custodian to maintain custody of the crypto on a blockchain and provide wallet management services that facilitate the tracking and valuation of the crypto assets.

How Businesses Can Integrate Crypto Into Their Payment Options

Still, it also has a Commerce product that makes it easier for businesses to accept digital payments. However, unlike similar services, CoinBase Commerce encourages companies to “be your own bank,” and the platform gives the company granular control of assets. One significant advantage of crypto transactions over credit card transactions is the absence of processing fees. That’s because crypto transactions don’t involve middlemen such as banks or third parties that process online payments. As a result, your customers don’t need to pay extra charges because you want to accept crypto payments.

Bitcoin and other cryptocurrencies were designed to make it easier for individuals to make payments to each other without the involvement of a third party. This makes it easy to simply speak with your buyer and organize your own payment. As more people continue to warm up to crypto, a good number of small businesses are way ahead of the news, positioning themselves to serve the increasing number of crypto-paying customers. Adam Uzialko is a writer and editor at business.com and Business News Daily. He has 7 years of professional experience with a focus on small businesses and startups.

Payment gateways are companies taking on the perceived risk of cryptocurrency payments by using their wallet to facilitate transactions between merchants and their customers. Unlike the old days, you don’t have to be a tech expert to start accepting crypto payments at your business. Cryptocurrencies such as Bitcoin are based on the blockchain, a distributed, decentralized, digital ledger. Depending on the payment processors you’d like to choose for your business, they may offer additional security measures like KYC/AML or blockchain monitoring services. If you want to keep your business on the cutting edge, it’s definitely worth it to accept cryptocurrency in your online store. Especially since crypto processors like BitPay can protect your business from price fluctuations, so your business won’t risk losing money due to changes in coin value.

A hardware wallet is a physical safe that stores the cryptocurrency in the device on a special hard drive. It’s really the only secure hardware device that lets you store a user’s private key. But small-business owners should keep a number of things in mind before accepting crypto. Cryptocurrencies are believed to be in a phase of hyper-adoption, and the 178% increase in the global crypto population is further evidence of that.

How Does Cryptocurrency Affect Small Businesses? – Nav

How Does Cryptocurrency Affect Small Businesses?.

Posted: Fri, 29 Jul 2022 07:00:00 GMT [source]

But there’s a lot to understand if you want to try it with your company. Start accepting Bitcoin, Ether, NANO and other cryptocurrency payments on your website or store. Join the thousands of businesses already using the world’s leading crypto payment processor. More than 2,300 US businesses accept bitcoin, according https://xcritical.com/ toone estimatefrom late 2020, and that doesn’t include bitcoin ATMs. An increasing number of companies worldwide are using bitcoin and other digital assets for a host of investment, operational, and transactional purposes. Be ready to grab every opportunity to stand out and thrive in today’s dynamic market.

At A Glance: Accepting Crypto Vs Credit Cards

But you do need to educate yourself as a businessperson about how Bitcoin for businesses works and how to deal with its volatile exchange rate, and you need to know that payment confirmation may take longer. There are many different Bitcoin payment processors, and other manual ways to accept Bitcoin on your website. While I recommend you dig deeper into these companies and find the method that best suits your business, these are some of the easiest ways to start taking crypto payments on your site. Is it important for your business that your money comes in quickly?

StartEverything that you need to know to start your own business. Nevertheless, older generations aged at least 60 are catching up and you’ll still need to adapt if you serve the older market. Meaghan has provided content and guidance for indie retailers as the editor for a number of retail publications and a speaker at trade shows.

If the payment gateway is hacked, you’ll lose any funds you have in your account with the provider while you’re waiting for them to be transferred. A payment gateway removes the anonymity of who you’re dealing with while maintaining your customer’s preference for it. The money is added to your account with the provider; it is deposited to your designated bank account in intervals decided on in your service contract. Amilcar Chavarria is a FinTech and Blockchain entrepreneur with over a decade of experience launching companies. He has taught crypto, blockchain, and FinTech at Cornell since 2019 and at MIT and Wharton since 2021. He advises governments, financial institutions, regulators, and startups.

accept crypto in your business

Accepting cryptocurrency as a payment method will give you access to a whole new market of tech-savvy consumers who have created a community within the cryptocurrency market. Given the option to pay through a digital wallet or a credit card platform allows you to dip into broader markets and appeal to consumers all around the world. Alternatively, you can decide to process your Bitcoin payments by yourself. If you choose to do so, then you won’t need an intermediary or have to pay them any fees. You also won’t need a bank account if you don’t want to convert the Bitcoin payment into fiat currency or want to sell it for cash in hand.

He has covered topics including digital marketing, SEO, business communications, and public policy. He has also written about emerging technologies and their intersection with business, including artificial intelligence, the Internet of Things, and blockchain. Some or all of the cryptocurrency payment can automatically be converted to U.S. dollars or other currencies.

With cryptocurrencies becoming more and more mainstream, this is a question lots of us are asking. Whether you choose to accept Bitcoin payments on your site is ultimately up to you, but if you choose to do so, it’s important you get the right setup. Here are six companies that can help you accept Bitcoin and other cryptocurrency payments. Sign up for payment processors such as BitPay and Flexa which automatically convert your Bitcoin to cash, eliminating volatility issues that can reduce your crypto’s value.

Immediately Convert To Cash

A payment gateway is a third party, which cryptocurrencies were originally designed to bypass. They pay you an amount equal to the digital currency’s fair market value at the time of the transaction. BitPay accepts 14 cryptocurrencies including Bitcoin, Bitcoin Lightning, Ethereum, and Dogecoin settled in USD.

  • While some crypto payment processors payout daily, others can take three to five days before processing your payment.
  • Cryptocurrency gateways enable you to accept digital payments and recieve fiat currency immediately in exchange.
  • Accepting cryptocurrency at a business has become easier and more widespread in the decade since.
  • Adopting crypto payments is becoming a global philosophy in the business world.
  • One significant advantage of crypto transactions over credit card transactions is the absence of processing fees.

Now that you’ve decided that your small business will accept cryptocurrency for payments, your next move is to set yourself up for transacting digital currencies. But the truth remains that you don’t need to be a tech expert before you can accept crypto payments. Businesses can choose to accept cryptocurrencies directly into a wallet maintained by the business or outsource responsibility to a third-party crypto payment processor.

With the right plugins, it’s easy to accept crypto payments and immediately convert them to your preferred currency. This means you don’t have to worry so much about volatility while still giving your customers a valuable service. When you accept Bitcoin payment on your website, you want maximum value for your customer and your business. With many different crypto payment processors to choose from, it’s important to evaluate your options and make sure you’re getting the best deal.

Give Your Business Apps The Home They Deserve

No bank or government body regulates crypto since cryptocurrencies are largely decentralized. With limited regulation, your businesses’ assets are not entirely safe. You’ll need insurance to cover issues such as data security breaches and cybercrime losses. If you run an e-commerce site on platforms such as Shopify, Magenta, and Woocommerce, there are numerous plugins that you can install to set up crypto payment processing. A multi-crypto wallet holds different types of cryptocurrency, saving you the inconvenience of opening many crypto wallets for different cryptocurrencies. When choosing your crypto wallet, you’ll also want to consider which types of cryptocurrencies it works with.

How To Accept Bitcoin And Other Crypto Payments On Your Website

NOWPayments POS supports bitcoin payments, and Coingate is launching a POS app that supports more than 70 cryptocurrencies. Some fraudulent customers use this option to take advantage of businesses because a credit card payment system allows it. This means that the business is the only one capable of issuing a refund. Think of crypto as making cash payments wherein the retailer is the only one capable of refunding cash should you choose to return the product. The open-source, open-ended nature of cryptocurrency composability can present technical challenges to newcomers. Integration with existing POS systems, ease of use and return, and susceptibility to fraud are of particular concern to businesses considering accepting cryptocurrency.

Cushion Yourself Against Crypto Drawbacks When Accepting Crypto Payments

Price volatility refers to the changes in value that cryptocurrency is subject to, which can sometimes be quick and extreme. Being protected from this means that you’ll get paid the amount you charge, even if the value of the coin changes mid-transaction. Unless you’ve been living under a rock, you will have no doubt felt the buzz surrounding blockchain How to Accept Cryptocurrency and cryptocurrency. The rise of digital wallets is making way for more convenient and instant payment systems, and as a result, disrupting the way we conduct business. Given cryptocurrency is automatically converted into local currency for merchants when using a payment processor, accepting this form of payment can be pretty seamless for retailers.