One of the main benefits of accepting cryptocurrency payments for businesses today is the reduction in the risk of funds being frozen. Cryptocurrencies operate on a decentralized system, not governed by any authority, making it difficult to impose restrictions. This decentralization allows businesses to accept international payments, expanding their business reach and potentially improving purchase conversion rates.
Benefits of Cryptocurrency Payments
Reduced transaction costs. Cryptocurrency transactions incur fees through the blockchain network, which are generally much lower than international bank transfers.
Faster transactions. Payments made with tokens bypass intermediary banks, speeding up transactions. Offering higher fees can further speed up the process.
Improved privacy. Cryptocurrency payments provide complete anonymity to the payer, reducing the risk of fraud.
How to start accepting cryptocurrency payments
This method involves providing a cryptocurrency wallet address to the client, who then transfers the funds there. It is crucial that the buyer accurately enters the correct payment amount and precise wallet address and selects the appropriate network. If this information is incorrect, it becomes impossible to return the sent funds.
QR code payments
This method is similar to the one mentioned previously, with the main distinction being the elimination of manual data entry for cryptocurrency transfers. The recipient creates a QR code in their wallet application, by first choosing the desired currency and network.
Payment details are auto-populated when the payer scans this code using the app. The user then verifies the network and payment amount before executing the transfer. This approach improves convenience and security for buyers, as it minimizes the risk of errors when entering the address, amount and selecting the correct network.
Creating a Custom Cryptocurrency Payment Gateway Module
The integration of a tailor-made payment module on the merchant’s site allows it to accept Bitcoin and other cryptocurrencies. In this setup, users visit the site, select from available cryptocurrencies, receive a wallet address and transfer the required amount of funds, thereby completing the transaction.
This approach is friendly to both buyers and sellers. However, its development can be long and financially demanding. Any errors in the development of the module could also result in financial losses.
Processing cryptocurrencies as a payment solution
Processing cryptocurrencies works in the same way as acquiring by credit card. It is a digital payment gateway for cryptocurrency transactions, involving intermediary services and software algorithms for payment processing.
The main advantage of crypto processing is its fully automated transaction system. It simplifies tracking and sorting payments for businesses while making it easier for customers to pay and access goods and services.
In crypto processing, once 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 cost of the product and generates a crypto wallet address and QR code for payment.
The customer sends the payment to the provided address, similar to when 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 requests additional payment.
Once the transaction is automatically confirmed, the order is marked as paid. The customer is informed of the success of the transaction and obtains immediate access to the goods or services purchased.
Cryptographic processing, mirroring traditional banking acquiring, automatically manages transactions. Complete payment and transaction details are transferred to the merchant’s account. The trader can then withdraw these funds to their cryptocurrency wallet.
In some regions, crypto processing services also offer physical payments at point-of-sale terminals, which are less common.
Benefits of cryptographic processing
- User-friendly payment experience;
- Automated processes, including issuing payment data, verification and access to the service after payment;
- A range of additional currencies and payment methods.
Cryptographic processing challenges:
- Potential complexities in website integration;
- Service fees for using the platform;
- Despite these challenges, the benefits of integrating a cryptocurrency payment system for businesses are significant and often outweigh the drawbacks.
Should Businesses Accept Cryptocurrency Payments?
Integrating a cryptocurrency payment option, which is becoming increasingly popular, can improve merchant conversion rates. With its automated transaction process, acquiring cryptocurrencies provides maximum convenience for businesses and customers. You can integrate it using the CryptoCloud service. Cryptoprocessing prioritizes user security through protection against DDoS attacks and data encryption, and ensures rapid withdrawals of funds.