Cryptocurrency is all the rave these days, with massive price fluctuations virtually every day. However, after more than a decade, this form of exchange is finally making its way into the mainstream.
As more people get interested in cryptocurrency, a growing number of small businesses are positioning themselves to accommodate the rising number of crypto-paying clients, analysing all of the cryptocurrency factors and turning them into crypto-friendly APIs.
What Is Cryptocurrency?
Cryptocurrency is a digital medium of trade that is decentralised and based on peer-to-peer blockchain technology. To put it another way, no central bank or government regulates or supports cryptocurrency. Without the use of third parties to process payments, buyers transfer funds directly to sellers.
Small businesses may choose to take cryptocurrency for a variety of reasons, including the fact that it is cutting-edge technology, it has the ability to attract clients that use cryptocurrencies, and the elimination of certain types of fraud.
Benefits Of Accepting Cryptocurrency
- Lower Transaction Fees
Transaction fees are significantly reduced due to the lack of a central intermediary. Small businesses that accept credit card payments through credit card processing companies typically pay roughly 2% to 4% of the overall transaction amount. These expenses pile up, which is why many Point-Of-Sale systems in smaller establishments impose credit card purchase minimums. Accepting cryptocurrency reduces these fees to less than 1% of the transaction value.
- Merchant protection
The decentralised nature of cryptocurrency protects merchants from chargeback fraud. Because no third party may reverse charges, the transactions are final, just like cash.
- Increased Sales
Small businesses can use cryptocurrency to expand and reach out to international buyers who formerly could not access these goods and services.
- Convenience For Customers
Accepting cryptocurrency gives clients more options to pay while also adding another degree of security to their data.
How To Accept Crypto Payments?
- Setting Up A Cryptocurrency Wallet
You will begin by creating a cryptocurrency wallet. A wallet is similar to a bank account in that it allows you to send and receive digital money. Since you are likely to accept a variety of cryptocurrencies from different consumers, it is preferable to get a multi-cryptocurrency wallet that can store many cryptocurrencies. A multi-crypto wallet holds multiple types of cryptocurrency, eliminating the need to open multiple crypto wallets for various cryptocurrencies.
- Integrate Crypto Payments On Your Website
It’s time to incorporate crypto payments into your website after your crypto wallet is up and running. You may use crypto processors to collect payments on your website in a variety of ways. Payment buttons and invoices are two examples of these methods.
Choose a cryptocurrency gateway that complies with the following criteria:
- Supports a variety of cryptocurrencies.
- Transaction fees are minimal.
- Integrate with platforms that are critical to your company’s success.
- Instant conversion to Fiat money protects your crypto from market volatility.
- There are no minimum balance requirements or payout limits.
You can arrange direct payments with your consumers if you can’t or don’t want to integrate. Your wallet address or your QR code, which you can obtain from your wallet, is all they require. To make a payment, your customers will enter your address or scan your QR code.
While many people still regard cryptocurrency as a passing phase, others are betting big on the new digital currency. Accepting crypto as payment while being a small business can help raise conversion rates and keep your business ahead of the competition. Cryptocurrency is becoming more widely available as time goes on, and early investors are in a unique position to exploit the benefits early on.