There is no shortage of news showcasing the rising popularity and use of cryptocurrency. Impacting the way we do business, the use of digital wallets is offering a more convenient, instantaneous way to make payments.
Why Accept Cryptocurrency In Your E-Commerce Store?
Although many businesses are still leery of using cryptocurrencies, due to its speculative and volatile nature, it is still worth adding to your e-Commerce store as a payment option. Why? Here are some benefits:
- Reduced Fees: When credit card payments are processed by a business, the transaction is not simply limited to the credit card company and the merchant. Several intermediaries are also thrown into the mix and they all charge their own fee. Credit card processing fees tend to run anywhere from 3% to as much as 5%. With cryptocurrency, the payment goes directly from the sender to the receiver. There are no middlemen and consequently, little to no fees. Cryptocurrency fees typically run from zero to 1%.
- Privacy and Security: By using cryptocurrency payments, customers do not need to share any personal financial information. All payments are completely anonymous, so there is no sensitive information for hackers to take. Another plus is that, since customers value their privacy, the use of cryptocurrency means the purchaser cannot be identified.
- No Chargebacks. No Disputes: Cryptocurrencies can be treated as cash since all crypto transactions are final and cannot be challenged by the customer. Therefore, customers have no way of disputing that they did not “authorize the payment” or that they are dissatisfied with a product or service.
Blockchain technology always confirms that the funds are actually available before completing a transaction. Eliminating any way for a customer to purchase from your store without having the sufficient funds for it.
How To Begin Accepting Cryptocurrency As Payment
There are two ways that your business can begin accepting cryptocurrency as payment within your e-Commerce platform. Let’s take a look at each one:
Manually
You can manually set up wallets and exchange accounts in order to receive your payments directly.
The first step is to choose a wallet to receive your payments. Do take note that certain wallets only support certain coins. Therefore, depending on the wallet you choose will determine which coins can be accepted in your store.
Also, if you are interested in converting your crypto money into fiat, you need to create an account or an exchange. Once again, different exchanges uphold different currencies. Therefore, take the time necessary to see which one would be the best fit.
Once you have chosen your wallet and account, some web development knowledge is needed to apply the payments on your website securely. Here is a list of additional steps to take:
- Create an interface for the customer to make the payment.
- Generate new addresses to receive the coins.
- Secure sensitive customer information.
- Transfer your funds from your wallet to the exchange.
- Exchange your coins for fiat money on the exchange.
If all of this seems overwhelming and convoluted, feel free to seek the help of a freelance developer to set this up for you.
Use A Cryptocurrency Payment Provider
Although this is a more costly option, you can always integrate the services of one of many cryptocurrency payment providers. They do all the work for you. The peace of mind that you get is that they handle the setup, processing, and converting the cryptocurrency into fiat currency.
Choose What Is Best For You
One thing is for certain, there is no lack of information on the benefits of cryptocurrency. There is certainly a learning curve that must be overcome. However, once you have mastered the way cryptocurrency works, your business will be in the right position to expand and thrive in this rapidly-changing economy.