On the other hand, using a payment gateway in your cryptocurrency transaction introduces a third party, which by nature, crypto is meant to avoid. Transaction fees and markups are typically higher if you use a gateway versus a crypto wallet. https://www.xcritical.com/blog/how-to-accept-cryptocurrency-bitcoin-ethereum-litecoin-and-others/ While standard crypto transaction fees are around 1%, some gateways charge as high as 5% for currency conversion. As more customers invest in crypto, digital wallets will increasingly become a preferred payment option for your customers.

As of June of 2022, 30% of cryptocurrency owners use crypto for purchases, and the number is only expected to grow. While many speculate that digital payments like crypto will usher in a cashless society, it’s doubtful that digital transactions will become exclusive anytime soon. These companies remove any uncertainties or reservations you might have about cryptocurrency and allow you to offer more payment options.

Enable Bitcoin Payments on Your Checkout Process

Your customers must understand that any transaction or fees cannot be refunded and transactions themselves cannot be reversed (if they send their BTC to the wrong address). This network allows for lightning-quick cryptocurrency transactions, by leveraging AMP staking. It integrates with Shopify and many other eCommerce/hardware/software solutions.

When choosing your crypto wallet, consider which types of cryptocurrencies it works with. Bitcoin is by and large the most popular cryptocurrency, with 75% of crypto owners owning some form of this currency. Other players are also emerging; the more currencies you can cover, the more sales you’ll likely capture. You should also consider the level of crypto/bitcoin payment security that wallets provide. Cryptocurrency is becoming more widely available day by day, and early adopters are in a unique position to enjoy the benefits earlier than others. While many people still perceive cryptocurrencies as a “hype” that will fade away, others are betting big on the new digital assets.

LATEST CRYPTO NEWS

In fact, each government is working on issuing regulations and guidelines for cryptocurrency transactions. That’s why each situation may be different, and you should consult a tax specialist in your country or state. Another interesting fact is that older generations are not yet keen on utilizing crypto assets, whereas younger people are more likely to use digital currency for high-value transactions.

Data shows that nearly half of US merchants have started accepting cryptocurrency as a payment method, yet only a very small portion of these are small businesses. Although cryptocurrency owners can trade it for goods and services, crypto is often treated as an investment opportunity. If you decide to move forward and start accepting cryptocurrency, you must make some decisions and take a few steps. Overall, the process is similar to getting set up with a credit card processing company. There are a few caveats that every business should understand and accept if they decide to use crypto.

Accept Bitcoin payments

Crafting a viable payment solution has been a tricky endeavor, but GoCrypto managed to build the necessary network. Merchants are still free to set their prices in their local currency, while customers can pay using cryptocurrency. You can integrate your crypto wallet on your website and enable it as a payment option in the checkout process. Some providers offer even lower transaction fees (CoinPayments is just 0.5%), while others add a network fee on top of the 1%. Potential additional fees include currency conversion fees and withdrawal fees.

• To receive bitcoin payments for goods and services, the merchant needs to provide a crypto wallet address (most wallets also have QR codes).
• When clients scan a QR code or pays online, they have the choice of paying with crypto.
• While the company has stated an intent to accept cryptocurrencies in the future, such forms of payment are currently on pause, due to environmental concerns.
• Regardless of which camp you’re in, learning how to accept cryptocurrency payments can help boost conversion rates and keep your business ahead of the competition.
• If this option is not available to you, you can integrate payments with HTML code from your wallet (both BitPay and Coinbase provide this).
• Changes in cryptocurrency regulation will likely continue as cryptocurrency’s adoption expands and new problems and difficulties emerge.
• As a safeguard, investing in insurance to cover potential issues such as data security breaches and losses due to cybercrime becomes critical.

Since then, over 10,000 cryptocurrencies have been developed, including Ethereum, Litecoin, and Dogecoin. As of 2021, Bitcoin is the largest cryptocurrency by market cap, with millions of investors and counting. Cryptocurrency’s regulatory landscape is poised to change as lawmakers craft new regulations. Once regulations are in place, they will likely evolve further, meaning business owners must be ready to adapt to changes in the cryptocurrency ecosystem. Alternatively, you can sign up for a crypto exchange outside of CoinPayments. Regardless, each crypto exchange just allows you to swap your crypto tokens for other coins or to exchange your cryptocurrencies for fiat currencies like the dollar, euro, and more.

Crypto Payment Gateway

But some business owners might prefer to accept cryptocurrencies directly to their digital wallets. Specifically, they both provide a way for customers to pay electronically, which is convenient for in-person transactions and a necessity for online sales. The price of bitcoin is always changing and, historically, can be volatile.

In February 2021, electric vehicle and clean energy company Tesla made headlines when it announced it had bought  $1.5 billion worth of bitcoin . For a short while, the company even began accepting payments in Bitcoin, in exchange for its products. While the company has stated an intent to accept cryptocurrencies in the future, such forms of payment are currently on pause, due to environmental concerns. With legislation that could interrupt the crypto payment acceptance process – including the possible creation of a governing organization to monitor cryptocurrency firms – you may face challenges.

Risk Management & Operations

Bitcoin’s total market cap, for example, surpassed $1 trillion in February 2021. Transaction fees are affected by which blockchain you’re using, network congestion, complexity and the price of the crypto at the moment. When clients scan a QR code or pays online, https://www.xcritical.com/ they have the choice of paying with crypto. Small Business Trends is an award-winning online publication for small business owners, entrepreneurs and the people who interact with them. Our mission is to bring you “Small business success … delivered daily.”