The rise in the number of businesses starting to accept crypto payments is meteoric and just as astronomical is the part that has long gone down this road.
According to the crypto payment analysis platform Coinmap, over 30K merchants already offer their services and products for cryptocurrencies, with Bitcoin, Ethereum, and other similarly prominent alternatives leading the list. Nevertheless, other cryptocurrencies with smaller market caps are gaining traction slowly but surely as their adoption rates rise along with user demand. These crypto coins in question are, more often than not, those boasting quite positive prospects. For instance, XRP is a common payment choice among businesses, and looking into the current XRP price prediction, it’s easy to see why it’s a go-to for many merchants.
Despite a few risks, some benefits emerge instantly, whereas others will keep coming simultaneously with consumers’ rising demand for alternative payments. The more flexible an enterprise is regarding the way it allows its customers to access its offerings, the better chances the future-oriented business has of beating the competition. The favored examples aren’t limited to crypto but extend to other payment methods like prepaid cards, checks, credit cards, Klarna, and large worldwide card schemes.
So, knowing that crypto payments are no longer a nice feat but an increasing necessity, can you afford to turn down clients willing to offer you money in the form of crypto? Probably not! Fortunately, you won’t sweat blood to include this modern payment gateway, so let’s commence the inevitable journey—preferably sooner rather than later!
Depending on the legality of crypto in your country
Given the unclarity and complexity surrounding the legal state of crypto payments, you’re bound to encounter implementation hitches. This can also happen if you have trouble dealing with traditional payments that don’t support your services. In this case, crypto can be a quick and efficient solution when you get the green light. Suppose merchants in your legislative area support crypto payments and the method is regulated; then you can proceed with other steps, like finding a merchant with low fees.
A myriad of countries have deployed forms of crypto regulation. The U.S., for instance, released guidelines for Bitcoin five years after its launch, introducing it later on the list of convertible currencies that can be valued in real currency or other legal replacements. In certain situations, Bitcoin, the largest and most used crypto in payments, is labeled taxable property.
In the U.K., cryptocurrency payments enjoy a similar level of acceptance, with a few distinctions. The government regulates crypto assets such as exchange tokens, crypto-based tokens, and sports-related cryptos. Last, cryptocurrencies’ statuses across the European Union differ by country, but essentially, there’s still some progress until you can implement such payments with the least effort possible. Nevertheless, numerous nations have been working on making it legal tender in the EU since the MiCa regulation passed last year.
Regulations for crypto see constant progress as their acceptance and usability levels rise.
You can, if you’re OK with a few hitches
There are numerous benefits to cryptocurrencies, but since such payments are still in their developmental stages, it’s clear that you may encounter some implementation hitches down the road. Compared to the ubiquitous credit card payments that go through payment processors, transactions in crypto are done on a decentralized ledger called blockchain, where deals are stored forever and easily accessible by the allowed parties. This also means that you’ll pay lower fees in crypto – usually, they’re less than 1% of the total sum, but it depends on several considerations. On the other hand, credit card payments can involve fees as high as 3.5%.
Communication is sometimes an unbearable obstacle. Dissatisfied customers can’t reach you to have their problems resolved—they may need to contact you directly to track down transactions and see how you can clear things up. Consequently, they can’t ask for chargebacks.
Transaction time may fluctuate depending on various aspects. For instance, a crypto transaction may take a few minutes if the network is congested. Other limitations may exist due to the novelty of crypto payments, so research these areas thoroughly!
Processes vary but often boil down to a few steps
After you’ve grasped your area’s crypto regulations and found that your desired payment is greenlighted, you’ll need to select a crypto gateway or wallet. The latter will help you exchange the crypto received in your country’s currency – or another. Gateways, on the other hand, are a more effortless alternative that provides enhanced flexibility, as they give you the freedom to store your crypto or convert the wealth. Nevertheless, the disadvantage is that the conversion can come with fees, sometimes equaling 1% of the transaction.
Depending on the online platform employed, you’ll have to go through a few extra steps, including:
- Setting up crypto payments through an app or plug-in installed in your e-commerce site, or introducing the option through HTML code via your wallet.
- Ensuring the crypto transactions are registered in the history of the same place that attracts all the other payments in your ecommerce platform. For instance, you can combine your existing accounting software with crypto transactions.
Expect volatility when converting
If there’s a staple trait to crypto that makes the industry stand out, it’s the inherent high volatility levels. Whether you look at Bitcoin, Ethereum, XRP, or others, the prices can jump and rise substantially within hours, necessitating constant monitoring of the market from reliable collaborators.
Don’t only create an A plan, but stretch it out to ensure you’re not caught unprepared by a massive fluctuation. This preparedness will protect you from possible price drops, as the climbs are nothing to worry about, but to rejoice! Fortunately, cryptocurrencies go through bull cycles that can generate pretty money if you’re invested and quick on the uptake.
Bottom line
Taking cryptos like BTC, ETH, XRP, etc., as an entrepreneur is an effortless implementation that can deliver unparalleled benefits, like unlocking a new consumer category. Once you’ve come to grips with the crypto regulations in your area, you can start planning how you’ll accept and track these payments. Then, you’re free to enjoy the fruits of your work!
