How To Accept Cryptocurrency As A Business
Cryptocurrencies are said to drive profit to any business. These mathematical algorithms are said to be the payment method of the future. Should your business accept cryptocurrency as payment? Despite the many controversies and raised brows surrounding cryptocurrencies, small- to large-scale businesses are now accepting this digital currency to keep up with a technologically driven generation. Using up-to-date tools and technology enables many entrepreneurs to stand out from the crowd.
According to research conducted by Statista, around 17% of incidences of abandoned shopping carts are due to privacy or security issues related to credit or debit card use. Many merchants also have accrued around $78 billion associated to credit and debit card processing fees. With the decentralization system in place with the use of cryptocurrencies, many businesses are looking at a decrease in transaction fees or hidden charges with third party institutions. Also, payments are available in a matter of minutes and would not take days of processing which normally happen with bank transactions.
What is the Process on How to Accept Cryptocurrency as a Business or Merchant?
There are two ways that you can accept cryptocurrency as payment if you are a merchant:
- Buy a Point of Sale (PoS) machine.
- Use a mobile wallet for accepting payments
The first step you need to take when you decide to accept cryptocurrency as a business is to set up an account with a trusted bitcoin merchant solution that caters to your country. The most popular options are BitPay and BitMerch. These exchanges are able to convert bitcoins into the currency of your choice or like in US dollars for a minimum fee.
Post a signage on your store which says “Bitcoin Accepted Here” to let you clients know that you have started accepting bitcoin payments in your establishment.
You can sell online or in a physical store where customers can scan the QR code. Your customers would be able to send payment right away using a wallet or mobile phone app like Blockchain or Coinbase.
For integrating your mobile into a PoS machine, you would need a digital wallet. You have to select a bitcoin wallet that matches your business need and operating system (if you are using Windows, Android, or Apple).
The most popular and reputable wallet is Coinbase, this has the option to convert your bitcoins automatically to USD and Euro. This follows a very simple process:
- Type the amount that should be paid by customer.
- QR code will automatically pop up.
- Present the QR code to customer.
- Client would scan the code with wallet to send payment.
- Transaction completed.
For businesses, using PoS machines are much recommended because of the added features like generating invoices and receipts that are available with the Bitcoin Internet Payment System (BIPS).
Coinkite also has the powerful features of a debit or credit card terminal plus bitcoin wallet. The terminal is able to print receipts with corresponding QR codes that customers can scan. This also functions as an ATM.