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Small and large businesses have started accepting digital money due to their rising global prevalence. Based on blockchain technology, these currencies offer fundamental benefits, from lower costs to higher security. Integrating them into your website has become essential, especially when approaching a larger market. In this article, we will explain in detail how you should accept crypto payments for your particular business.
How to Accept Crypto Payments
Cryptocurrencies are based on blockchain, a constantly updated record of all transactions. Owning coins or tokens means holding a digital asset rather than a physical one. Crypto operations can eventually be processed from one person to another without an intermediary.
Crypto wallets are very similar to digital wallets. If you are familiar with Apple Pay or Android Pay, you won’t find crypto payments difficult. You don’t have to convert digital currency into fiat currency as long as you have a special account linked to a payment processor. The transaction details automatically appear in your account.
The standard transaction fee for making crypto payments is 1% or less. Some providers may request a network fee. For example, making a payment via the bitcoin blockchain would need you to pay $1.3 extra. Despite these fees, the cost of processing such transactions is still lower than traditional methods.
The standard transaction fee for crypto payments is 1% or less, with possible network fees (for example, $1.3 for Bitcoin). Despite these fees, processing crypto payments is cheaper than traditional methods.
If your online business uses digital money, you should know how to receive crypto transactions on your website. Before starting, you need to find a provider that would handle the technical and regulatory aspects. Here is the traditional flow of a crypto transaction.
Crypto is an effective payment method for your business. However, it hasn’t been fully regulated worldwide. This is why you should do the following:
Do you want to receive your crypto payments as digital or fiat money? Depending on the selected provider, you’ll need to take specific steps to set up your account.
2.1 Crypto wallet
You will need to create a crypto wallet to collect and store digital money for a long time without exchanging it for fiat money. Make sure it works with the cryptocurrency you plan to use on your website.
| How it works? | Security | |
| Hosted wallets | The third-party provider stores and manages your assets. | Third-party provider |
| Self-custody wallets | You hold and have full control over your assets online. | Business |
|
Hardware wallets |
You own a physical device, designed to store assets offline. | Business |
You do not need a separate crypto wallet if you consider using a gateway to accept payment in crypto. The gateway serves as an intermediary in your transaction. It allows you to receive the asset and get fiat currency in return in your personal account. For example, brokerage companies integrate a payment gateway API into their platforms, where the users manage their funds before and after trading operations. Let’s see why it is the best option for your business.
| Crypto wallet | Crypto payment gateway | |
| Key function | Store and manage digital assets | Accept crypto payments |
| Main user | Individuals and businesses | Primarily businesses |
| Conversion | Doesn’t convert crypto to fiat | Convert crypto to fiat instantly |
| Service fees | Network fees | Network and transaction fees |
| Integration | Independent or integrated with exchanges | Integrated with eCommerce platforms |
| Legal compliance | Users must comply with local regulations | Provider takes responsibility for compliance with local regulations |
Users will be able to make crypto payments in your online store. Just make crypto payment part of the checkout process.
You need to choose a crypto wallet, admired by merchants and retailers in different parts of the world. To integrate one into your platform, you need to take the following steps:
You need to make the selected gateway part of the checkout process on your website. Depending on the website’s complexity, this stage may require serious development work. Here is what needs to be done:
You should keep an eye on digital payments and report them to the responsible institutions when the time comes. Establishing an accounting program can help you deal with tax obligations. Discuss the details with an expert to ensure you take crypto payments properly.
The gateway becomes a common choice for commercial services. Let’s explore some key benefits:
The benefits of accepting payments in crypto:
Payment processors do not collect any sensitive information. Cryptographic signatures and private keys create a special layer of security, which minimizes cyber attacks or data breaches. Accepting crypto payments is less vulnerable to risks.
Crypto transactions are processed between the buyer and seller, with no intermediaries (banks or brokers). As a result, there are low transaction fees (up to 1%) compared to traditional payment methods.
The use of digital assets is widely circulated, especially in developing countries. Companies that receive crypto payments can build a larger customer base. This will help them survive in the competitive market.
Central authorities do not regulate crypto payments. In the case of legal discourse, companies do not have to handle chargebacks (around $25 per case), which can simplify the resolution process and reduce potential losses. This can be particularly beneficial for businesses.
If your shop is oriented on the global clientele, accepting crypto would make your business more efficient. Receiving digital money can help you approach customers worldwide and expand the market.
When you accept cryptocurrency as payment, you should be ready to receive and send coins instantly. The average financial operation may take a few minutes only. The short waiting period makes the interaction between businesses and customers more productive.
Accepted crypto payments may come with certain risks, including:
While not a lot of places accept crypto directly, it’s clear that the smooth acceptance and processing of crypto payments on the commercial site can help your business reach new heights. Apart from saving time and money, it is possible to increase your global presence. If you consider keeping your company ahead of the competition, make sure to reap the benefits of digital money. This guide can educate you on how to integrate crypto payments on website. You’ll see the results in no time.
