Poland, December 22, 2023—A primary benefit of accepting cryptocurrency payments for businesses today is the reduced risk of funds being frozen. Cryptocurrencies operate on a decentralized system, not governed by any authority, making it challenging to impose restrictions. This decentralization enables businesses to accept international payments, broadening their sales reach and potentially enhancing purchase conversion rates.
Advantages of Cryptocurrency Payments
Lower Transaction Costs. Cryptocurrency transactions incur fees through the blockchain network, which are generally much lower than those for international bank transfers.
Faster Transactions. Payments made with tokens bypass intermediary banks, resulting in quicker transactions. Offering a higher fee can further expedite the process.
Enhanced Privacy. Cryptocurrency payments offer complete anonymity for the payer, thereby decreasing the risk of fraud.
How to Start Accepting Payments in Cryptocurrency
Cryptocurrency wallet
This method involves providing a cryptocurrency wallet address to the client, who then transfers the funds to it. It’s crucial for the buyer to accurately input the correct payment amount and the precise wallet address and select the appropriate network. If these details are incorrect, it becomes impossible to return the sent funds.
QR Code Payments
This method is akin to the previously mentioned one, with the key distinction being eliminating manual data entry for cryptocurrency transfers. The recipient creates a QR code in their wallet application, choosing the desired currency and network beforehand.
The payment details are auto-filled when the payer scans this code using app. The user then verifies the network and payment amount before executing the transfer. This approach enhances convenience and security for buyers, as it minimizes the likelihood of errors in entering the address, amount and selecting the correct network.
Creating a Custom Cryptocurrency Payment Gateway Module
Integrating a bespoke payment module on the merchant’s website allows him to accept Bitcoin and other cryptocurrencies. In this setup, users visit the site, select from the available cryptocurrencies, receive a wallet address, and transfer the required amount of funds, completing the transaction.
This approach is user-friendly for both buyers and sellers. However, its development can be time-consuming and financially demanding. Any errors in the module’s development could also lead to financial losses.
Cryptocurrency Processing as a Payment Solution
Cryptocurrency processing functions similarly to bank card acquisition. It is a digital payment gateway for cryptocurrency transactions, involving intermediary services and software algorithms for processing payments.
The key benefit of crypto processing is its fully automated transaction system. It simplifies payment tracking and sorting for businesses while making it easier for customers to pay and access goods and services.
In crypto processing, after a customer selects a product or service on a website and proceeds to checkout, they choose a preferred cryptocurrency for payment. The service then converts the product’s cost and generates a crypto wallet address and QR code for the payment.
The customer sends the payment to the provided address, like transferring to a cryptocurrency wallet. The system automatically detects and confirms the payment within minutes, provided the correct amount is transferred. If the amount is incorrect, the system alerts the user and prompts for an additional payment.
Once the transaction is automatically confirmed, the order is marked as paid. The customer is notified of the successful transaction and gains immediate access to the purchased goods or services.
Crypto processing, mirroring traditional bank acquiring, handles transactions automatically. The payment and complete transaction details are transferred to the merchant’s account. The merchant can then withdraw these funds to their cryptocurrency wallet.
In some regions, crypto processing services also offer physical POS terminal payments, which are less common.
Benefits of Crypto Processing
- User-friendly payment experience;
- Automated processes, including payment data issuance, verification, and service access post-payment;
- A range of currencies and additional payment methods.
Challenges of Crypto Processing:
- Potential complexities in website integration;
- Service fees for using the platform;
- Despite these challenges, the advantages of integrating a cryptocurrency payment system for businesses are significant and often outweigh the drawbacks.
Should Businesses Accept Cryptocurrency Payments?
Incorporating a cryptocurrency payment option, which is becoming increasingly popular, can enhance merchants’ conversion rates. With its automated transaction process, crypto acquiring offers maximum convenience for businesses and customers. You can integrate it using the CryptoCloud service. Cryptoprocessing prioritizes user safety with DDoS attack protection and data encryption as well as ensures quick fund withdrawals.
