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One of the essential parts of running a successful e-commerce business is to accept payments. However, with all the recent scams and frauds in the market, it has become difficult for merchants to find safe options for payments. Cryptocurrency, however, is a safer option that individuals can explore. Cryptocurrencies are digital currencies that are generated through solving complex mathematical algorithms. They are stored in wallets on users' computers which can be accessed via passwords or keys.
What is cryptocurrency?
Cryptocurrency is considered to be a digital payment system based on blockchain technology. As the name implies, it is a digital currency used as a medium of exchange. Individuals can also use cryptocurrency to purchase goods and services from suppliers worldwide. Apart from these transactions, cryptocurrency can exchange value and is usually traded via decentralized platforms like an open-source network. Cryptocurrencies are known for their decentralization, transparency, and anonymity features. To learn more about cryptocurrencies, you can check here a crypto training course by Dan Hollings, you’ll be able to learn everything about cryptocurrency that every beginner needed to know.
Why should merchants accept it?
Accepting cryptocurrency has several benefits. Here are a few reasons that should make you consider accepting cryptocurrency payments on your e-commerce site:
1. Increase in sales
Through cryptocurrency, selling products has become easier for merchants worldwide. Cryptocurrency is gaining popularity and usage, so it is only fitting that merchants accept it as a form of payment for their products and services.
2. Low fees
One of the main reasons most people stick with fiat currency as a payment option is the high transaction fees that merchant processors usually charge. Merchants using cryptocurrency can save on these charges.
3. Cryptocurrency is safe
Since the currency is digital, Individuals will better protect it from monetary loss or damage. Natural disasters can be prevented since they do not have a physical presence like fiat currency.
4. Lower processing fees
Crypto transactions are almost free compared to traditional credit card transactions.
Accepting Cryptocurrency as Payments on Websites
The first step to accepting cryptocurrency is to create a cryptocurrency wallet. Many companies offer free wallets, but the downside is that they take time before money can be transferred into your customers' wallets.
The next step is to create a gateway between your website and the cryptocurrency wallet. To do this, you would need an API from one of your cryptocurrency trading platforms like Coinbase, etc. If you plan to accept multiple currencies, you could use a platform like ShapeShift, which allows for easy conversion.
The next step would be to integrate your cryptocurrency payment platform on the online store's checkout page. Many platforms can be used to integrate these buttons, but Coinbase has its button creator, which is integrated into all of its services.
After the integration is complete, you must add a checkbox that asks the customer to confirm their payment. This option can be set to not show on non-deterministic wallets.
Finally, you want to collect all the relevant details of your customers' transactions, such as name, email address, payment address, and phone number. These details will be stored on your cryptocurrency wallet and reflected in your sales report.
Are there any downsides to accepting cryptocurrency payments?
The only downside to accepting cryptocurrency is that it has not yet become widely accepted as a payment method. The only merchants that accept it are willing to face the challenges, like hacking of cryptocurrencies, which have continued to be in the news. However, if you have been able to accept cryptocurrency payments at your e-commerce site successfully, this is one reason that supports your business.
A cryptocurrency is a form of digital payment that now are being accepted to use as one of the currencies to buy and sell products and services. Since it has certain advantages in payment processing, merchants should consider using it as a payment option at their site. It may give you an edge over your competition, so it is best to invest now rather than later on.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.