Cryptocurrency has become well known as the popular fresh alternative asset. What most people might not know is that Bitcoin is more than the “latest bitcoin price” and has more uses other than being an alternative investment option. Bitcoin payments provide the online world a new way to settle amounts across countries with ease and speed.
How to accept cryptocurrency payments
Accepting cryptocurrency payments in your store might sound like an enormous undertaking because of the complications related, the regulations attached, and the blockchain systems involved. In reality, it can be quite a simple process, depending on the method you choose.
In order to accept cryptocurrency as payment, you can either:
- Accept payments using your own personal wallet, or
- Use a built-in payment platform, such as Coindirect Business.
Accepting Bitcoin to your personal wallet
The first step to accepting any cryptocurrencies into your wallet is to have a place to store the tokens. This means that you will need to set up a digital crypto wallet. These come in different forms, such as online (referred to as ‘hot’ wallets), offline (‘cold’ wallets), through platforms, devices, and paper. To accept payments, an online wallet is your best bet, although you can transfer the cryptocurrencies to an offline storage device for additional security. Your wallet will come with an address which customers will use to send the cryptocurrency payment through.
The downside of using your own wallet is that you will need to monitor every single payment which comes, which requires personal time and energy.
Bitcoin payments through a platform
Integrating a platform for cryptocurrency payments on your store takes the hassle out of your hands. The entire process of payment is handled by the platform, similar to a credit card processor. This can offer several options, such as allowing customers to pay in cryptocurrency and you receive fiat or your customers pay in fiat and you receive cryptocurrency. Coindirect Business also does not require you to have any cryptocurrency infrastructure and offers simple plug-and-play integration.
The added advantage is that you can choose to receive your payments either in cryptocurrency or have it directly converted to your local currency which means you don’t run the risk of price volatility.
The benefits of Bitcoin payments
Many people shy away from accepting Bitcoin payments because cryptocurrencies have a reputation for being complex and volatile. While explaining exactly how Bitcoin works might not be simple, allowing your customers to pay in the token does not need to be complicated.
With Coindirect Business, integrating the platform is a simple process with no cryptocurrency infrastructure required from your side.
One of Bitcoin’s functional advantages is that it is borderless. This means that cryptocurrency payments can open up an international market to you without compromising security. Having a Coindirect Business plug-in on your store also offers payment support for areas which might be difficult to reach, which can expand your business in ways that have not been possible before.
One of the most frustrating things a customer might see when checking out is an apology that “this card has been declined”. Especially after filling out all billing details and having to wait for one-time-pins. With digital payments, a certain amount of convenience should follow, but credit cards don’t always offer it.
With the right platform, Bitcoin payments can be as easy as signing in and clicking a button. It’s even better because the convenience is two-way: you and your customer both benefit from the streamlined process.
Cryptocurrency offers a level of security against fraud because payments cannot be reversed unless the merchant consents. This means that a payment cannot go through only for a third-party, such as a bank, to reverse the order and take the funds from your account.
With Bitcoin payments, once the funds are in your account, only you can move them around – protecting against fraud and banking interferences.
Coindirect Business also offers additional layers of security with custom fraud prevention models in place, combined with machine learning and intelligence tools as a means to reduce fake payments. This combats both fraudulent activities as well as anti-money laundering (AML).
Along with issues of declined cards, credit payments can be lengthy as you have to wait for confirmation of payment which can then delay the service. Cryptocurrencies do not face the same waiting periods, meaning you can access your funds immediately once your customer pays.