Bitcoin (BTC) is a legendary cryptocurrency for which blockchain technology was invented. It’s seen its value rise from a couple of pennies to tens of thousands of dollars; the BTC price could rise again, provided there are no macroeconomic headwinds. Unlike Bitcoin, fiat currencies are supported by entire governments and are legal tender. The economic demand for fiat money has begun to hit a wall because individuals are seeking decentralized assets, such as BTC, as they can make transactions easily and quickly without third-party intermediation. The point is that Bitcoin is an asset that no business can afford to ignore.
With so many people using BTC, there’s nothing better you can do than to accept cryptocurrency payments from customers. Not only is accepting Bitcoin payments a safe and secure way to do business, but also you can eliminate the risk of fraud and theft. It’s important to get the right setup.
What Are the Business Benefits of Accepting Bitcoin Payments?
If you’re not taking Bitcoin seriously, you should because you can attract customers who are passionate about blockchain technology. Some of the critical advantages of accepting Bitcoin as a business are:
- Lower transaction fees. It’s almost impossible to run a business without accepting credit cards. The fees from these transactions reduce your net profit and increase your net loss. Credit card processing fees range between 1.5% and 3.5% of each transaction’s total. So, how do you cut costs to maximize profit? Accepting BTC payments is one solution. Transactions don’t require a processing fee, but a payment gateway merchant will charge 1%.
- Convenience for customers. At present, the process of sending Bitcoin is simpler – it’s similar to using an app to send money from a bank account. Reasons for using cryptocurrency include quick payments, avoiding transaction fees, and anonymity. It’s good business to offer your customers the option of making BTC payments.
- Merchant protection. Sometimes, when customers make online purchases with their credit cards, they request a chargeback after receiving the goods. This is considered fraud. If you don’t have the time, resources, or expertise to dispute fraudulent chargebacks, you should better accept Bitcoin payments. Transactions are irreversible, meaning they’re not subject to chargebacks.
There Are A Few Different Ways to Accept Bitcoin Payments
Bitcoin is designed for the modern world, so it doesn’t take a complex setup to start accepting payments. If you’re thinking about accepting BTC as a business, we’ll show you how to do it.
Invoice Clients in Bitcoin
Create a Bitcoin address by depositing your funds into a wallet, which accommodates your cryptographic information and generates an alphanumeric key before making a transaction. Once you have a Bitcoin address, you can invoice your clients with the wallet address listed in the place where the bank details should be. Keep in mind that transactions can’t be reversed on the blockchain, so ensure the staff doesn’t make any mistake (for example, a typo). By issuing invoices that are in BTC, you’ll have an easier time when the tax season comes, meaning you can stay compliant while becoming part of the future of finance.
Add Bitcoin as A Payment Option on Your Website
If your target audience is interested in Bitcoin, there’s no reason why you shouldn’t accept cryptocurrency payments. How you integrate Bitcoin payments depends on the online platform your website is hosted on. Bitcoin payment can be added and removed whenever on sites like Shopify, Magenta, or WooCommerce – all you need to do is use the right plugin. Let’s take an example. From the Shopify admin, go to Settings and then to Payments. in the supported section, click Add payment methods, and search and select by payment method. After you’ve added Bitcoin payments, your customers will be able to use it at checkout.
Accept Bitcoin in Person
To accept Bitcoin payments in a retail location, like a store or restaurant, you need a point-of-sale (POS) with a card reader or terminal that can process cryptocurrency transactions. As long as you’re connected to the Internet, you can carry the POS machine in your pocket. There’s no need to buy an initial stock of coins or create a Bitcoin wallet. In case you didn’t know, a QR code can help. What happens is that people scan your QR code with their wallets and much-needed information, i.e., your Bitcoin address and the payment amounts, autofill.
Other Cryptocurrency Payment Options
There’s no denying that Bitcoin is the most popular cryptocurrency in the market, but it’s certainly not the only one. If you wish to cater to a wide customer base, make other cryptocurrency payment options available to expand your reach, whether locally or internationally. Here are some examples of cryptocurrencies you’ll want to add to your list of payments:
- Ethereum. Ethereum is more than cryptocurrency; it’s a digital platform that accommodates smart contracts, non-fungible tokens (NFTs), and decentralized applications (dApps). Ether (ETH) is the native token of the blockchain and serves two purposes: preventing bad actors from congesting the network and acting as an incentive for users to validate transactions.
- Cardano. Cardano (ADA) is a cryptocurrency, a blockchain, and a platform to run dApps. The coin can be exchanged for other cryptocurrencies and then used to buy goods and services. Cardano is compatible with smart contracts developed on the Ethereum blockchain.
- Tether. Tether (USDT) is pegged to the U.S. dollar, so it maintains a price of $1.00 at all times. Therefore, it’s mostly used by investors who want to avoid the typical volatility of cryptocurrencies while holding funds. Merchants can accept Tether as a means of payment for goods and services.
All In All
Cryptocurrency payments are the future of retail, so accepting Bitcoin payments should be a priority for your business, especially as more and more competitors are adopting this practice. We’re slowly but surely moving towards a cashless society, meaning that accepting Bitcoin payments could be your greatest asset in this ever-shifting world. The process is simple and the disadvantages of accepting cryptocurrency are small (for instance, tax implications).