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The use of cryptocurrency as a payment method is growing in popularity among consumers today. Although popular cryptocurrencies like Bitcoin and Ethereum have become more popular recently, there are already around 10,000 distinct kinds of cryptocurrencies available. Due to their promise of quick and affordable transactions, these cutting-edge payment methods continue to attract shoppers.
Between January and April 2024, an average of 378,000 transactions were made using Bitcoin alone, and an estimated 1 billion people use cryptocurrencies worldwide. Currently, cryptocurrencies have a combined market cap of around $2.41 trillion today.
Small businesses may be able to expand their clientele and boost sales by taking well-known cryptocurrencies like Bitcoin. First and foremost, though, you should be well-versed in the definition of cryptocurrency, its work, and how you might be able to start accepting crypto for your business.
The term “Crypto”, which stands for “cryptocurrency”, refers to a type of money that is only found online and is transferred between computers. To verify and protect transactions, it makes use of cryptography or encoded information. Every transaction is entered into a blockchain, which is a digital ledger.
Cryptocurrencies are safe to accept as payment, to put it simply. The technology behind cryptocurrencies like Ethereum (ETH) and Bitcoin (BTC) is called blockchain. A blockchain is a public ledger that keeps track of and validates every transaction. Since no outside force can change it, it is totally safe and transparent. Furthermore, decentralized finance (DeFi) is the foundation of all cryptocurrencies.
Manage your digital payments easily using MaxelPay’s all-in-one cryptocurrency solution. Lower fees, faster transfers, and complete security.
While many people use cryptocurrency to pay for everyday purchases, some companies are still reluctant to accept these digital payments. In reality, accepting crypto payments has many benefits such as:
Cryptocurrency transactions are nearly always faster than traditional payment processing since they are decentralized and do not depend on intermediaries to complete transactions as they bypass intermediaries like banks. Conversely, traditional payment processing systems use intermediaries like banks and brokers. Traditional payments may therefore take a few days to process. On the other hand, cryptocurrency transactions take anywhere from 30 minutes to 2 hours to complete.
Payment processing is not free. In order to handle fiat transactions, a small fee is charged by intermediaries. The cost of these transactions will increase with the number of middlemen. The banks, credit card companies, and other financial organizations charge fees to merchants in order to accept traditional payments.
Since third parties are not involved in cryptocurrency transactions, transaction fees are typically cheaper than those for standard transactions.
Cryptocurrency is a more secure payment option than traditional transactions. Credit/Debit cards can be stolen by fraudsters, who then use them to make illegal purchases. On the other hand, blockchain technology serves as the foundation for cryptocurrencies. The risk of fraud and money laundering is greatly decreased because these transaction records can not be manipulated. Cryptocurrency owners can also use secured digital wallets to keep their money. Compared to traditional which may be misplaced or stolen, these wallets are far more secure because they can not be opened without the key.
It can be challenging to accept traditional currencies if you run an online business with a global customer. E-commerce merchants usually have to deal with the challenges of managing banking fees and exchange rates.
Because they are fiat-agnostic, you can use cryptocurrencies anywhere in the globe without enlisting the help of third parties. Therefore, it becomes more convenient and cost-effective for businesses of all sorts to accept payments from other countries.
Merchants are known to detest chargebacks, although they are typically helpless to stop them. Even when they are founded on valid complaints, chargebacks require a substantial investment of time and money to resolve. A dispute that a consumer files with their credit card company results in a protracted investigation and frequently a chargeback. Since there are no middlemen or central authorities involved, this does not occur with cryptocurrency transactions. Cryptocurrency transactions take place between peers so there is no way for a chargeback.
Tap into the growing crypto market and increase your conversion rates by accepting fast, easy, and secure crypto payments.
Are you aware that your business would get benefits by accepting cryptocurrency payments? If so, follow these steps to create the infrastructure you need to properly accept cryptocurrency payments.
Countries have different laws governing cryptocurrencies, and as their use grows, these laws are frequently changed. Your jurisdiction’s governance and compliance requirements must be understood if you intend to accept cryptocurrencies. Your region and intended market will determine which crypto regulations apply to your company. If you cater to global markets, you need to be aware of the crypto laws in each location. However, you may stay current on the most recent legislation and compliance standards with the assistance of a crypto regulatory specialist.
The next step in receiving cryptocurrency is to select a custody method. In other words, how would you like to be paid? Crypto wallets and gateways are the two ways to accept cryptocurrencies.
Here is a breakdown of each of these payment options:
Crypto wallet: By using a crypto wallet, you can keep your cryptocurrencies in their original state rather than exchanging them for fiat money. If you are at ease working with cryptocurrency, this is the best option.
Cryptocurrency payment gateway: A no kyc cryptocurrency payment gateway functions similarly to a traditional credit card payment processor, acting as a middleman in the transaction process. The best options depend on your level of understanding of the cryptocurrency market and how you desire a high level of personal involvement in the transaction process.
Although there are different types of coins, not all of them are commonly accepted. Therefore, while accepting cryptocurrencies, it's critical to take into consideration factors such as market preferences, popularity, and consistency with business principles.
If you’re unsure which coin or token to accept, you might start by accepting one or more of the most well-known cryptocurrencies, like:
Ethereum
Tether (USDT)
Solana (SOL)
Ripple (XRP)
A cryptocurrency payment processor, like MaxelPay, enables customers to make cryptocurrency payments to your business. While selecting the point of sale (PoS), below are the features to be considered:
Transaction speed: This refers to how quickly the software will process and complete the cryptocurrency payment.
Supported currencies: The top payment processors accept a large number of different cryptocurrencies.
Fee structure: Payment processors usually base their fee structures on the volume of transactions.
Scalability: As your business expands, your payment processor should be able to adjust with that growth.
Integration: The payment processing software should also integrate seamlessly with your existing financial systems to ensure accuracy and ease of use.
Your Payment gateway software must be integrated into your checkout page to accept cryptocurrency payments. Your Cryptocurrency payment gateway provider will provide you with a step-by-step guide for the integration via plugins or APIs.
Finally, make sure you create a thorough policy that addresses returns, refunds, and managing the volatility of cryptocurrency prices in order to protect your business and customers. For example, you ought to let your customers know that chargebacks are not accepted. By being clear about this policy, future customer service issues can be avoided.
Traditional fees are significantly more expensive than cryptocurrency transaction fees. When you include all interchange, assessment, and payment processing fees, credit card fees can go even higher. For example, PayPal fees can reach up to 4% per transaction.
In contrast, the majority of the crypto payment gateway providers charge 0.4% to 1% for every transaction. Businesses are encouraged to accept these digital payments by lowering transaction fees for cryptocurrencies, which can drastically reduce the expenses associated with processing payments.
