As burdensome as accepting Bitcoin payments can be, it appears to be rewarding

Satoshi Nakamoto, Bitcoin’s creator, stated that this cryptocurrency is the means to transfer electronic money from one party to another without the involvement of any financial institutions, thus easing online payment processes and benefitting both the customer and business owner.

 

The allure of instant riches sometimes overshadows that Bitcoin (BTC) was first used to purchase a pizza. Even the most delicious dish now doesn’t justify the price that was paid back then – the cost of that renowned pizza is now worth more than $500 million. 

Accepting cryptocurrency as a payment method is becoming increasingly common, thus allowing you to implement it in your business more quickly and efficiently. Planning your cash-conversion strategy, working through integration questions and maybe finding a payments partner are all on the to-do list when you implement a BTC payment method.

Many entrepreneurs believe that taking Bitcoin, Ethereum and cryptocurrency generally might be the future of payments. For many, it’s just a question of when not if. And it’s easy to see why: by trading products and services for crypto, they can protect their business from chargebacks, reduce transaction processing costs, cater to consumer preferences, and expand their market presence.

If this topic is of interest to you, keep reading; you might find valuable pieces of information here.

 

Accepting Bitcoin can benefit your brand 

Cryptocurrency is a virtual currency or coin that allows for direct transactions without third-party processors. Accepting cryptocurrency as payment at your business may reduce transaction fees but also raise security concerns.

However, this payment method may deliver some primary benefits compared to traditional POS systems, like the following ones:

  • Lower transaction fees. The absence of a central intermediary diminishes transaction fees significantly. Accepting cryptocurrency can reduce these costs to less than 1% of the transaction value.
  • Increased sales. Bitcoin helps companies connect with foreign buyers that didn’t have access to their services previously. 
  • Merchant protection. Because no third party can reverse charges, transactions are final, and merchants can only be held liable for their customer’s purchases.
  • Convenience for customers. Accepting cryptocurrency provides customers with additional payment options while adding an extra layer of security to their information.

 

What you should know before accepting Bitcoin and cryptocurrency

There is no need to be concerned about fraud or chargebacks with BTC transactions. Bitcoin is crypto, meaning such payment methods eliminate cyber threats like stolen credit card numbers. However, the currency is not entirely safe from cyber risks, because digital coins, unlike fiat currencies, are not backed or insured. 

Some companies are trying to address wallet security, but until they find the perfect solution, you should take precautions to store virtual payments and process transactions securely.

 

Don’t forget crypto is a volatile market

Like most commodities, including investments, assets and other products, cryptocurrency is volatile. This aspect is affected by the supply and demand of that moment, the latest news in economics, and so on. It’s obvious why you should check Bitcoin price before jumping headfirst into investing in it, and it’s recommended to treat this topic accordingly. 

As a rapidly adopted asset by business owners, traders and investors, price movement speculation plays a significant role in this crypto’s value at any given time. Investor concerns are raised by influencers, opinionated industry titans, media outlets and incredibly supportive crypto enthusiasts. 

It’s not unusual to see investors and fans stress over how the Bitcoin price will rise, but you should use common sense when deciding what product or asset you put your money in. It’s impossible to predict how this trend will go and what Bitcoin’s value will be in the future.

You should get set up if you’ve decided to accept Bitcoin

First things first, accepting Bitcoin as payment requires reaching out to a bookkeeper or accountant. They’ll help you understand the tax implications and figure out what to do with the Bitcoin you receive. 

Secondly, think about how your accountant will receive the information from your POS system. 

Third, be aware that your customers are subject to pay capital gains taxes on the BTC or any cryptocurrency they use to buy your products. This doesn’t involve you, but it’s best to acknowledge it as a factor in their decision on the payment method chosen.

Last but not the least, be aware BTC payments require several things:

  • A crypto exchange
  • An internal back-end portal
  • A payment processor or gateway
  • Plugins for commerce vendors
  • Mobile front-ends like web APIs and POS terminals.

You’ll need a BTC wallet and find a BTC payment processor

You’re already more accustomed to digital payments thanks to mobile banking apps like Google Pay. The acknowledgement you’ve gained so far in the fintech app industry helps you understand crypto wallets better. If you want to develop your BTC payment solution, there are a few options.

  • Create a cryptocurrency payment solution from the ground up
  • Create a cryptocurrency wallet and publish its public address.
  • Develop a cryptocurrency or token that can be integrated with an existing blockchain payment solution provider.

 

Once you’ve worked out all the necessary and potentially unplanned aspects, take pride in your work and let the world know about your company’s new payment method. Integrate it on your business’ website or tell customers – you can use the latter as a word-of-mouth marketing strategy because it works for surprisingly numerous companies.

 

Conclusion

To conclude, if you’re a business owner and your company can comply with all the regulations BTC payments bring about, you should consider the BTC payment option.

Here are some of the potential benefits you might have from implementing this payment method:

  • Reach out to a new audience globally. Each day, increasingly more people join the crypto club, and dozens of people register on exchange and look for ways to benefit from this emerging technology.
  • Benefit from the constant operation. Crypto never sleeps, just like money never does; Bitcoin only takes breaks when the market closes at night. Blockchains continue to operate day and night due to complete automation.
  • Avoid fraud. All transactions occur on a decentralised network, so it’s simple to track the details of every transaction. Plus, this happens automatically, which ultimately removes a burden.

 

                                

Speak Your Mind

*