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How would businesses accept crypto payments?

8 mins read

Did you know that an electronic giant and an iconic EV company witnessed a surge in branding and reputation after announcing their support for crypto? In a recent survey, over 30% of small businesses reported accepting crypto payments. As of now, over 15,000 businesses across the world accept crypto payments. Crypto is currently one of the most favored forms of payments among the millennials and even the older generation has also started warming up to crypto. In fact, a study has found that businesses that have started accepting crypto payments have witnessed a 40% hike in sales.

The numbers mentioned above are inspiring enough to set up crypto payments options for a business, regardless of size. However, crypto payment involves a certain level of ground work. Mex group

How to set crypto payments for your business

Set crypto wallet

First, you would have to get a crypto payments wallet. Think of it as your bank account in and from where you receive and send digital money. The crypto payments sent by your customers would reach your wallet directly.  Now, there is a wide range of crypto wallets out there but then not all would be compatible for your payment solution.

There are certain things that you must check beforehand while setting the wallet. It’s best to opt for a multi-currency wallet – a wallet that accommodates several kinds of cryptocurrencies. You might start with one particular crypto for crypto payments- but, over time, you might start to accept multiple cryptocurrencies. Thus, it’s better to invest in a multi-currency wallet. This way, you won’t have to get separate wallets once you would start accepting more numbers of  cryptos for crypto payments.

Besides, the wallet must be compatible with other wallets, thereby ensuring easy integration. Other factors to check here include ability to connect with money-transfer applications and cutting-edge safety. The wallet should be hack-proof.

One thing must be mentioned here- please make sure to convert the crypto payments right to fiat after you receive them. The crypto scene is extremely volatile and even the top most cryptos might take a dip any moment. Put simply, you can’t expect stability when it comes to crypto payments. Yes, crypto payments offer a certain degree of advantage over traditional payment systems but there is the glitch of lack of stability. The only way to overcome that with your crypto payments is through fiat conversion.

Integration of crypto payments

Plugins

After setting up the crypto wallet, you would need to integrate the crypto payments right into the website. Now, if it’s an online store, you will get plugins that can be installed for the processing of crypto payments.

Payment gateway

In case you are unable to find the needed plugin, you can opt for a payment gateway for crypto payments. However, not every such gateway out there would be compatible for your business. Just like the wallets, you will have to check a number of factors before signing up with the right payment gateway.

The first thing that you will check here is the crypto compatibility level of the gateway. The chosen gateway must offer support for multiple cryptocurrencies, just like the wallet.  Then, the gateway should be compatible with all the platforms that you would have to integrate it with.

There are three more things that you must check beforehand when it comes to the gateway for crypto payments. One is the transaction fee. It’s needless to mention that the gateway should charge affordable transaction fees. The other thing that you must check here is whether or not the gateway comes with payout and minimum balance restrictions. Additionally, the gateway must be able to assure instant fiat conversion from crypto payments.

The  best payment gateways for crypto payments offer multiple additional benefits as well, such as recurring payments, invoicing, accounting options. Finally, the payment gateway should be backed by stellar reviews and ratings as well as excellent market reputation.

Advantages of accepting crypto for business

The advantages of accepting crypto payments are manifold for your business. The opening paragraph has already mentioned inspiring numbers about businesses accepting crypto payments and its impact. Here is a brief on the benefits of accepting crypto payments.

Faster and more economical payment processing

If you know about  crypto, you are acquainted with its decentralized aspect. Well, the decentralized aspect relieves involvement of intermediary or 3rd party middlemen from the payment processing scene. In the traditional payment processing scenario, you always have middlemen who process the entire payment system. As a result, the conventional payment processing system always includes charges for the 3rd parties. The involvement of middlemen also makes the process time consuming,

But, you don’t have to face these problems with crypto payments. Given the decentralized nature of crypto, the crypto payment happens in a direct manner, without any involvement of 3rd party or middlemen. Thus, with crypto payments, you won’t have to pay extra charges for middlemen. Also, since there is no involvement of middlemen, crypto payments are processed much faster than traditional fiat payments.

Global reach

Well, crypto payments have made it easier for businesses to capture international markets.

International transactions are usually pricey and  these extra charges could be overwhelming especially for small businesses.  As  a result, several small businesses are apprehensive of taking their business beyond the borders, even when they have potential. This problem  has been solved by crypto payments.

As mentioned before, crypto operates in a decentralized environment. As a result, you don’t need to shoulder the high fees associated with international transactions with fiat money. In crypto, the process follows a P2P protocol that cuts out intermediaries from the process. Apart from that, the absence of intermediaries also ensures no delay in processing the transactions.

Improved brand reputation

Approval of crypto payments is likely to put your brand in a positive light. Your business would be acknowledged as a progressive business and that would do wonders to surge up the sales figures.

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