Pandemic propelled several companies to turn to cryptocurrencies during the economic uncertainty. However, cryptocurrencies are not wholly mainstream because of their highly volatile value. As a result, depending on cryptocurrencies ave its own risks for those who adapt to this payment method.
Cryptocurrencies made it to the mainstream payment method, especially after the announcement of El Salvador in September 2021, that the country becomes the first one to accept cryptocurrency as an official legal tender, which turned out to be a milestone in the extensive adoption of cryptocurrencies. People who intend to accept cryptocurrency in their business must be aware of the benefits and disadvantages of this payment method.
Investors are accepting that the cryptocurrencies might appeal to a wider client market for several reasons such as,
Cryptocurrencies use uncrackable codes, which can engage users while making regular or large transactions.
The decentralized character of cryptocurrency ensures its assessability to everyone; at the same time, banks and building societies could be selective as to who they do business with.
Most of the time, Cryptocurrency Payments are anonymous.
The markets have been known to boom enormously, with cryptocurrencies being a “new” type of cash, which means even a small investment could prove rather profitable. The most common investment, “holding,” where the clients purchase cryptocurrencies and keep them for a while, expecting the price to increase in value until it profits them.
With this, let’s explore the steps involved in Accepting Cryptocurrency as a Payment Gateway on your e-commerce store or incorporating it into your business. And to start accepting cryptocurrencies,
1. Choose your payment processing provider (PSP) and open an account.
Various websites such as bitpay, coinify, and bitcoinpay are there to help you with cryptocurrency management services. Hence, do your research and find the one that best fits your needs.
2. Put an end to restrictions by adding your bank account details
Despite being anonymous, every new account is limited to transactions worth $1000 per month by default, and in order to remove that limitation, the investors must provide their personal information consisting of a copy of your ID or passport, names, and addresses of the company directors and address of incorporation for the verification purposes.
3. Choose your currency
After opening your account, you will be given the opportunity to choose the currency you want to convert your bitcoins while being paid out to your bank account. As the fees and exchange rate differ with every PSP, it is wise to choose an exchange that encourages you to work with EUR. It allows you to charge your end customer in USD currency, whereas you’ll be paid in EUR, which will drastically reduce the fees paid for every transaction.
4. Accept payments at your point of sale
Once after complete the account, you are ready to Receive Cryptocurrency Payments. It’s either done by sending an email to the customer with a payment link or providing your customers with a unique QR code that can be generated on the website. Indeed, the customers who wish to pay with cryptocurrency should have their very own cryptocurrency wallet setup. Samples of code with mock server testing are available in PHP, java, python, Ruby, and more.
What comes after?
After receiving cryptocurrency payment, you have several options:
- Store cryptocurrencies in your wallet to use for your future purchases.
- Automatically convert and deposit cryptocurrency into your bank account. You will be able to confirm a specific amount as the threshold for deposits or define recurring deposit dates.
These are some of the basic examples of how money can be automated with cryptocurrency. However, various actions can be configured and automated as per your business needs, such as paying employee salaries, creating new orders from suppliers when the stocks are low, or paying bills in countries that allow it.
Despite being still well underway in competing with traditional financial systems, it is evident that cryptocurrencies are here to stay and could potentially change our lives forever.