Cryptocurrencies have undergone massive developments since their inception, growing from a premature payment option to a hot topic that top-tier financial regulators and authorities discussed. The latest market crash in 2022 seems like it is going well on recovery in 2023, with many digital coins and tokens growing in value.
Businesses and online platforms have increasingly adopted crypto payments, facilitating fast and safe transactions. Customers are becoming more aware of security practices, prioritising privacy and confidentiality.
Therefore, if you manage an online shop or e-commerce store or you sell digital assets, it is time for you to accept crypto payments for your business. How to get started? Here is everything you need to know.
How Crypto Transactions Work?
Firstly, let’s explain how crypto payments work, which is a process that involves payment gateways, APIs, payment security systems and crypto wallets to process the payment from beginning to end.
The crypto transfer starts with the user initiating a transaction from the checkout page after choosing a crypto payment method. In this stage, the payment gateway communicates with the website to indicate the purchase amount and any transaction fees.
This process also involves APIs that exchange data with the sender’s wallet, the blockchain and smart contract. The process ends by releasing the funds to the receiver or merchant’s wallet.
This sophisticated process entails a few complexities that the blockchain deals with, such as encrypting the crypto money, approving the transaction with validating nodes and processing the gas fees.
However, on the user’s side, the process is seamless and only takes a few steps to transfer cryptocurrencies by interacting with the payment gateway.
How Do You Accept Bitcoin for Your Online Business?
Receiving crypto money has the benefit of quickly getting your money and finalising settlements in a shorter period of time. More businesses are accepting Bitcoin payments following these steps.
- Comply With Applicable Regulations
Adhering to local regulations about accepting crypto payments is crucial. In fact, the first thing a client would look for is the legality of your business and how safe it is to send Bitcoin payments.
Find out the applicable laws about cryptocurrencies in your country, if there are some banned digital currencies, or if any special disclosures are required when dealing with cryptos.
This is crucial to protect your clients’ funds and your account from being restricted by authorities or becoming unable to receive your payments.
- Setup a Crypto Payment Gateway
The technical part starts here, where you look for a payment gateway that accepts cryptocurrencies. However, there are a few things to consider when choosing the best crypto payment gateway, such as supported currencies, the expected transaction volume, global reach, and the pricing policy.
Note that a suitable payment gateway carries integration capabilities with your website and merchant account to streamline cash flow from your customer’s wallet to your wallet.
- Integrate The Gateway With Your Financial Solution
Gateways usually have various integration possibilities using crypto API capabilities. These tools exchange data between your website, your bank account, and any solutions you use to track your transactions.
Start connecting your gateway with your financial solutions to seamlessly receive money in your bank account or e-wallet, where you can easily monitor your funds, analyse transactions, and discover specific trends. This helps you generate various reports to learn more about your customer behaviour and to offer suitable solutions and services.
- Add Crypto Payment on The Checkout Page
Online platforms are increasingly accepting cryptos by adding that as an option on the checkout page, besides other traditional payment methods.
Allow your customers to send you different cryptocurrencies, such as BTC, ETH, USDT, USDC, etc. Different digital currencies expand the user base and encourage your clients to use crypto. You can also simplify the user journey by adding a scannable QR code that allows customers to finalise payments in two steps, increasing their satisfaction with your services.
Bonus: Add Crypto Exchange Feature
Buyers usually send cryptocurrencies from their wallets. What if they did not have cryptos in their wallets? You can add a crypto exchange tool on your website, where users can exchange their fiat money on the point.
This facilitates accepting crypto payments on your online business and improves the customer experience by not sending them to a third-party website to exchange money before interacting with your website.
Conclusion
Managing financial transactions in your online business is challenging. However, accepting cryptocurrencies on your website makes this process easier because transfers are usually instantaneous and secure.
Therefore, you can easily track payments, analyse transactions and finalise settlements without waiting several days. This process improves the customer experience and invites more clients to your website, which helps you grow and expand your business.
