With the value of cryptocurrencies like Bitcoin and Ethereum on the rise, more and more people are looking into ways to get on the blockchain ladder. Investing in cryptocurrencies is still somewhat tricky, as they’re not yet widely accepted as a form of payment by most businesses.
As a result, there has been an increase in demand for websites that allow you to buy products with your crypto wealth. Let’s take a look at why you should offer the opportunity for your customers to pay in crypto.
1. They help you tap into a tech-savvy international client base
More and more people are buying cryptocurrencies, and it’s a trend that isn’t slowing down. Cryptocurrencies are here to stay, so if you can take advantage of this and offer your customers the chance to pay with digital coins, you’ll be ahead of the curve.
Many payment processors charge merchants setup fees as well as transaction fees. In cases where your business serves overseas customers, cryptocurrencies can help you avoid currency or conversion fees. These digital currencies are decentralised, meaning they aren’t linked to a country of origin or national bank. Because of this, businesses don’t have to wait for payments to clear a foreign bank or pay the associated costs of transfer.
2. They are safer than carrying cash or credit cards
Credit and debit card payments are considered less secure than cryptocurrency payments. The reason for this is that cryptocurrency does not require third-party verification. Payments made with cryptocurrency don’t go to a centralised store where data breaches are common, but they are stored in a crypto wallet. It is also very difficult to steal an identity thanks to blockchain general ledgers, which verify and record every transaction.
3. There are no chargebacks with cryptocurrency payments
Cryptocurrency payments are permanent once they have been processed. Transactions can only be refunded by the party receiving the funds, so chargebacks cannot be automatically requested by customers. The retailer must manually refund them if needed.
Consider that this crypto-refund process can also lead to inefficiencies in your business operations and a lot of additional work for your employees. During the holiday season, for instance, your team will need to focus on returning payments individually if you have a lot of refund requests.
4. The payments are instant
The blockchain underpins the value of cryptocurrency. And a large part of cryptocurrency’s popularity stems from its ease of use: an Internet connection and a smart device are all that customers need to make payments and money transfers instantly. This is good news for your business as you will also receive these payments in real-time, which leads to timely and accurate revenue-sharing while simplifying back-office reconciliation.
How to accept payments in cryptocurrency
Cryptocurrency can be accepted in your eCommerce store in two ways: through your own wallet or a third-party payment processor.
You will need a virtual wallet when you accept cryptocurrency via your personal wallet. You can download most wallets onto your phone or computer or get a hardware wallet. Hardware wallets store the cryptocurrency on a special hard drive and allow you to store a user’s private key on the device.
Another option is to use a third-party payment processor, such as TRU Connect, which will manage the entire payment process. When you use a third-party payment processor instead of a personal wallet, you can instantly convert the cryptocurrency into fiat money, also known as government-issued currencies, saving you from price volatility. A cryptocurrency’s volatility refers to the changes in value that it is subject to, which can sometimes be rapid and severe. Having this precaution means that the amount you charge will be paid to you, regardless of any changes in the coin’s value during the transaction.
Accepting cryptocurrency in your online store is definitely worth it if you want to keep your business on the cutting edge of technology. Particularly since crypto processors can protect you from price fluctuations, your business won’t need to worry about losing money due to changes in coin values. With minimal risk, you can appeal to crypto-enthusiast customers, while boosting your brand’s visibility.
Your online store can accept cryptocurrency payments right away with TRU Connect, while also partnering with an industry-leading payment processor. Contact us to get started.
