Starting to accept Bitcoin payments for your goods and services is the most common and convenient way to do so for your everyday business venture.
Is it worthwhile, regardless of industry? Consider these questions before deciding to accept Bitcoin as a form of payment from your customers:
Should You Accept Bitcoin Payment For Your Business?
The first thing to evaluate is if your firm can gain from accepting Bitcoin at all. But, in most circumstances, it is a no-brainer. As long as you have a service or a product to provide, the Bitcoin payment option simply gives an additional way of payment for customers who would rather pay with cryptocurrencies than fiat currency.
There might not be a lot of such customers at the start. Still, a recent study of Crypto.com’s users has indicated that the number of people that would like to pay with crypto is multiple times higher than the number of shops willing to take it.
The mismatch between crypto-paying consumers and crypto-friendly merchants marks the chance to fill up the demand gap and obtain a competitive advantage over firms that operate in the same industry.
What Kind Of Companies Accept Bitcoin Payments?
Travel, automotive, digital media, and hospitality industries have the highest demand for crypto payments, according to the same report.
A payment processor is used by a variety of organizations, including those in the VPN, hosting, gaming, gambling, and similar industries, all of which have a history of accepting Bitcoin and other cryptocurrencies for payment.
Businesses in the aforementioned fields don’t only accept Bitcoin and other cryptocurrencies for payment on the fly.
Companies that operate abroad and provide digital goods and services may find it advantageous to accept payments in Bitcoin or other cryptocurrencies because of the numerous advantages that come with doing so.
Benefits Of Accepting Bitcoin Payments
With numerous advantages using Bitcoin payments can offer businesses, below are some of the benefits of adopting Bitcoin payments.
- Lower transaction processing costs.
- Instant payment from anywhere across the world.
- More customers with huge wealth.
- No fraudulent chargeback.
- Multiple marketing opportunities.
- Absolute control of funds.
- Seamless currency conversion across borders.
Factors to Consider Before Accepting Bitcoin Payments.
There is always a need to address additional essential issues that need to be answered before deciding to adopt Bitcoin payments for your business. This is to guide you on the new strategy to achieve the full of incorporating crypto payments in your organization.
1. Is Accepting Other Cryptocurrencies Preferable to Bitcoin?
Bitcoin is not the only cryptocurrency in the market, as there are over 10,000 cryptocurrencies in the crypto space. Therefore, it is possible to use a wide variety of cryptocurrencies to make your transactions more secure. A wide variety of other cryptocurrencies, like Litecoin (LTC), Ether (ETH), Tether (USDT), Dogecoin (DOGE), and stablecoins, are also commonly utilized in online payments today.
Consider the potential of accepting other forms of payment as well, such as credit cards. Using a crypto payment gateway service makes it considerably simpler and less time-consuming to set up a wide range of payment methods.
2. Should You Employ A Crypto Payment Processor?
A crypto payment provider might be a nice idea. Whether or not taking crypto payments is worth it depends on what you want to accomplish and what functionalities are necessary to meet your business objectives.
If you only need to accept Bitcoin for your business, you may be able to save money by setting it up yourself. A service provider that specializes in this industry can give the flexibility and diversity that many firms are looking for.
Qualities To Look Out When Choosing A Crypto Payment Provider
Payment processors aren’t the same. While each has its advantages and disadvantages, there are a few general principles to keep in mind when looking for the finest solutions.
1. Inspect Wallet Compatibility
For unclear reasons, many users online express their discontent over the usage of a payment protocol that is not always compatible with standard wallets by payment gateways.
BitPay’s adoption of the BIP70 protocol has sparked a lot of controversy and bad comments, with users accusing the corporation of forcing customers to use the unpopular protocol, centralizing servers, and violating users’ privacy.
2. Look Out For Hidden Fees
To offset the costs of their service maintenance, certain payment providers believe in punishing the merchant’s customer with hidden fees. Even though it’s considered immoral by many payment processors, it’s nonetheless widely practiced.
It is also possible that even ordinary fees are excessive. Keep in mind that anything beyond a 1% fee is considered excessive by the industry.
3. Understand Your Final Settlement Currency Option
Some payment providers might perform a terrific job collecting money. Still, when it comes to withdrawing funds, alternatives are frequently limited. It is a fact that most businesses are willing to collect crypto while converting it to fiat currency in their local accounts. However, not every payment processor gives such a choice.
Best payment gateways allow merchants a choice to withdraw money in numerous methods, whether crypto, fiat, or both.
Methods Of Implementing Bitcoin Payment Acceptance In Business
1. Official E-Commerce Module Integration
The quickest approach to setting up crypto payments is through plugin integration via the selected e-commerce platform.
There are various payment plugins, which include Magento, WordPress, osCommerce, etc.
Installing a cryptocurrency payment plugin provides no difficulties. You can download the plugins from the back offices of the e-commerce platforms or straight from their official websites.
2. One-Time Email Billing Option
Sending cryptocurrency invoices through email or by a link with a QR code is made possible by the use of recurring billing.
Using the subscription feature, companies may also send out individual automated crypto bills to large numbers of clients at once. Businesses like VPNs, game publishers, video streaming platforms, hosting providers, and the like, who offer subscription-based products or services, are the most likely candidates.
Businesses can issue one-off invoices using this way of accepting crypto payments.
3. API Connection
A more customized approach can be realized with the API’s ability to process cryptocurrency payments on nearly any website from the moment of checkout to the final settlement phase.
To complete the transaction, the API presents the user with a Bitcoin address and a QR code that they may scan. Nevertheless, a little technical know-how is needed to put it into action.
Using the API, you will need to put its code into action on a website. Further API settings may be beyond the capabilities of a typical user.
4. Point Of Sale (POS)
The Bitcoin payment option can also be integrated with a point-of-sale system. It is possible to open the app in a web browser. The business can accept bitcoin payments face-to-face, on the go, anywhere, and instantly as long as the device is connected to the internet.
To make accepting Bitcoin even more convenient, the merchant can link as many PoS devices to his payment gateway account as needed.
5. Payment Buttons
Accepting cryptocurrency payments via a payment button is a simple and flexible approach. Copying and pasting a single line of code into your website is all it takes. To a certain extent, you can also customize the button’s function to suit your preferences.
You can, for instance, program a button to only charge a single amount. Another option is to include a slide that allows the user to select a payment amount between the lowest and highest possible. Also, a list of buttons with many fixed amounts to choose from can be created.
The title, description, background image, and logo of the button window, for example, can all be changed. Additional features like payment notifications or custom information boxes for customers to fill out are also offered in this technique.
Even while Bitcoin is still widely seen as an unstoppable trend, some people have decided to go all-in on the new digital money. Accepting Bitcoin as payment as a small business can enhance conversion rates and keep your company ahead of the competition, regardless of which camp you’re in.