As the popularity of cryptocurrencies like Bitcoin continues to grow, you might be thinking about adding it as a payment option. Most consumers today enjoy having different ways of paying for goods and services, especially with so many people using mobile devices to make purchases. Accepting crypto payments could be a great way for your business to increase sales and reach new customers.
There are various ways you can accept cryptocurrencies as a merchant: wallets, exchanges, payment processors, merchant accounts, ATMs, and more. This guide will help you better understand cryptocurrency and how you can implement it in your ecommerce website.
What is Cryptocurrency?
First, what is cryptocurrency? Put simply, cryptocurrency is a digital form of money that is encrypted and decentralized. It uses cryptography to secure transactions and does not have a central issuing or regulating authority. Instead, it uses a decentralized system – cannot be controlled by governments or banks – to record transactions and issue new units. As such, there are no transaction fees associated with using this virtual currency.
Why Ecommerce Merchants Should Care about Cryptocurrency
Many big names like Starbucks, Whole Foods and Microsoft have included cryptocurrency in their payment options. A move small business owners and ecommerce shops should pay close attention to – the popularity of crypto among customers is growing. The biggest benefit of accepting cryptocurrency payments for ecommerce merchants is the ability to provide a secure payment option that is not subject to chargebacks.
There are several other key benefits:
- Minimal transaction fee. Sounds too good to be true? In this case, some crypto transactions really do charge minimal fees. Cryptocurrency transactions are much cheaper than credit card companies.
- Reach new audiences. The businesses that take the leap with crypto payments are able to tap into this growing market and grasp the opportunity this increased demand provides. It’s an excellent way for businesses to attract new customers.
- Increase security. Fraud has been such a big problem for customers and merchants alike over recent years. The way crypto technology works (entries are made into the blockchain) makes this payment option incredibly secure.
If you’re considering accepting crypto payments, the next step is to speak with your payment processor. While there are different ways to go about it, a good place to start is to find out what solutions your current provider offers. Remember that not all wallets, exchanges and providers are the same. Compare industry-leading options and then choose the one that will benefit your business and customers the most longterm.
Content crafter Alex Wilmont has been active in the payments industry for over 15 years. He lives simply, gives generously and loves his 2 dogs. His mission is to enhance and innovate the fintech industry for years to come.