Today, as the world is quickly becoming more and more global, traditional payments are no longer satisfying the needs of businesses and customers. They do not like the slow processing speed, high commissions, and insecurity of transactions. Under these conditions, cryptocurrency payments are becoming increasingly popular, with huge advantages over conventional electronic money.
Now, many large companies that need to accept payments from their customers are thinking about gradually shifting their business to cryptocurrency payments.
The Popularity of Cryptocurrencies
There is a significant discussion on the topic of cryptocurrency payments today. Even though some businesses still doubt that they should switch to such a payment system, one cannot but admit that the future of all world financial settlements lies in cryptocurrency payments.
However, the difficulties of accepting bitcoin payments are almost entirely leveled if the business needs to make large volumes of payments. In this situation, digital currencies allow you to make the fastest transaction with minimal commissions and accept bitcoin on a website.
At the same time, when using payment in cryptocurrency, such commissions will be much lower than those that must be paid when conducting transactions using conventional bank cards. In this case, they range from 1% to 3%. In addition, intermediaries in such transactions charge additional fees for processing transactions and servicing the card. When making cryptocurrency payments, the commission will not exceed 1%.
At the same time, payment in Cryptocurrency has its drawbacks, which do not outweigh its advantages. One of them is the non-refund of payment in Cryptocurrency. The buyer of a product or service cannot cancel their payment. Only the recipient of the money can do this. As a rule, this problem is more related to small e-commerce companies. In the case of large businesses, this does not happen in practice.
Another disadvantage is the volatility of cryptocurrency rates. This can prevent you from accepting bitcoin on your website and overall accepting crypto payments on your website. The rate can fluctuate significantly, so businesses that accept cryptocurrency payments must transfer their digital assets into cash daily.
There may also be problems with data security, which occur, as a rule, solely through the fault of the private key owner. If they lose it, they lose all of their digital currency stored in a cryptocurrency wallet.
At the same time, it is impossible to count on any compensation and that you can recover at least some part of the lost funds. Cryptocurrency is not insured in any way, and this, of course, creates some difficulties.
So far, not all countries are ready to recognize Cryptocurrency as payment. However, bitcoin has already won this title in some countries to answer the question: «What can you use cryptocurrency for?».
What Does the World Think About Cryptocurrency?
First, we are talking about El Salvador – the first country in the world where bitcoin was recognized as an official means of payment. El Salvador did this primarily to attract the attention of investors. The government has created its cryptocurrency fund, constantly replenishing new bitcoins. It also directs the money earned on the exchange rate growth to the construction of social facilities.
Other countries in Latin America are also following this experience with interest but are still hesitant to follow the example of El Salvador. Although, this may be a matter for the near future while consultations and discussions are underway.
Many states treat cryptocurrencies as property and believe that transactions with digital assets should be taxed. This creates additional difficulties for those who send the payment and those who receive the money.
Today’s largest payment systems look at cryptocurrency payments carefully, believing they are the future.
For three years now, AT&T has been making cryptocurrency payments. The international PayPal service allows you to place orders using digital money and pay in bitcoins and other cryptocurrency payments.
With great interest are digital currencies and the largest payment systems in the world: Visa and Mastercard.
Following the example of payment giants, what should those businesses do if they have decided to start accepting payments in Cryptocurrency?
How to choose the right payment gateway?
The first thing to answer the question “How to accept cryptocurrency?” is to choose the right payment gateway. This is not as simple as it might seem at first glance. There are many such gateways.
Cryptocurrency Payment Gateways Requirements
- The legitimacy of Work – Such a gateway must be officially registered in a reputable country and have a license for its activities.
- Speed of Transactions – It must guarantee its customers that all transactions will be carried out quickly. Indeed, this is one of the most critical aspects of the volatility of cryptocurrency rates.
- Low Commissions – When paying in Cryptocurrency by users, it is important not to overpay. Commissions need to be transparent and reasonable.
- User-Friendly Interface – A user-friendly interface is one of the main criteria by which they choose a payment gateway. It should be convenient and pleasant for them to work with such a payment system.
- Security – All transactions through the gateway must meet the highest security standards. Users must be sure that they will not lose their money.
Benefits of working with CoinsPaid:
- Low and understandable commissions (at the same time, a big plus is the absence of hidden commissions. You immediately understand how much you have to pay).
- The payment system supports more than 30 digital currencies and 20 fiat currencies.
- Instant conversion of Cryptocurrency to fiat. In addition, direct settlements in 6 cryptocurrencies are also provided.
- It is the only payment gateway that has passed the system security check by Kaspersky Labs and 10Guard.
Many businesses wonder how to accept bitcoin and other cryptos. The company must take simple and understandable steps to connect the ability to accept altcoin and bitcoin payments.
How to Accept Cryptocurrency as a business?
There are several points to keep in mind when accepting crypto:
- Customize API
- Decide on Cryptocurrency
- Withdraw funds automatically
- Set up fiat options
- Learn how to manage transactions
- Conduct testing
- Add a crypto payment button
- Tell users you have started accepting altcoin payments
Let’s go through all of them step by step.
First, the API allows the website of the party accepting the digital payment to exchange data with the CoinsPaid payment gateway server. After that, you must verify the merchant account, activate the API key, and get the secret code to access the API. After that, you can withdraw the funds from the account.
Bitcoin today is one of the most popular cryptocurrencies for making such payments. And yet, there is a vast number of other digital assets that are quite suitable for this. Among them are Ethereum, Dogecoin, Litecoin, and many other tokens.
Withdrawing received money manually is very inconvenient. However, automatically withdrawing funds to an external wallet is much better. You can do this when the balance in your account reaches a certain amount. You can set any limit that is convenient for your work.
The CoinsPaid payment gateway, after being approved by the security service, allows its users to set up bank account details to make withdrawals in fiat.
This convenient feature allows you to accept altcoin payments and withdraw fiat money. CoinsPaid can transfer fiat funds to the seller’s balance via SEPA or SWIFT transfer.
The seller can access all information about accepting cryptocurrency payment transactions: the receipt of funds from the buyer and the automatic withdrawal of funds from the account.
Moreover, this list of payments in Cryptocurrency can be filtered by various parameters: amount, date, and so on.
Those in eCommerce who are just starting to accept altcoin payments should practice before beginning to work with real money from users. This can be done in a unique virtual “sandbox” that will demonstrate all the possibilities of accepting cryptocurrency payments without the need to test it with real money.
After almost everything is ready and configured, you need to create a noticeable and eye-catching button that shows you accept cryptocurrency payments on your company’s website. With its help, customers of your cryptocurrency merchant services learn that such an opportunity exists.
Now that all the technical part has already been done, you just need to notify the world that the company has begun accepting crypto payments. Of course, at first, some of the clients may have doubts. After all, everything new is always a little scary. Nevertheless, they will gradually get involved and appreciate such additions’ advantages.