Why Your eCommerce Store Should Accept Cryptocurrencies (And How to Get Started)

Friday, September 25th, 2020

Cryptocurrencies. Are they worth adding to your business? Or are they truly the speculative investment some people consider them to be? More and more reputable stores are actually jumping on board and including cryptocurrency payment options. If you’re still on the fence about this payment option, here are some of the pros and cons of accepting Bitcoin and other cryptocurrencies, as well as how to get started:

The Pros

One of the top advantages of cryptocurrencies is that it reduces fraud. Chargeback fraud has and continues to be one of the biggest challenges and common occurrences on ecommerce platforms. Chargebacks occur when a customer orders your product or service, but then claims the package never arrived, was stolen, etc. Your valuable resources are then tied up trying to fight claims. Cryptocurrency payments, on the other hand, are irreversible; there’s no way to reverse the transaction, making it virtually impossible for chargeback fraud to occur.

Cryptocurrency also involves lower transaction fees. While most payment processors charge around 3.0% per transaction, cryptocurrency transaction fees are significantly less. You also have greater control over the fees you pay.

Most importantly, cryptocurrency helps your business stay on top of the latest consumer trends and enjoy greater customer reach. The more technology takes over the world and governments and companies track every little move, the more consumers have become concerned with privacy. This has led a growing number of people to choose cryptocurrencies like Bitcoin for online purchases.

The Cons

One of the downsides, Bitcoin and other digital assets do experience price volatility. What was worth $100 today might not be worth $100 next week. As with any new feature, incorporating cryptocurrency also involves additional setup. You will have to configure the back-end to accept and process the cryptocurrency payments. Finally, you might experience some customer confusion when they find new options at checkout, so be prepared to answer questions they may have on how it all works.

How to Get Started with Cryptocurrency Payments

In truth, there are many ways to get started in accepting cryptocurrency on your ecommerce platform. However, some will be easier and provide more flexibility than others.

Option #1 – You can avoid using third-party processors by manually setting up wallets and exchange accounts to receive payments directly. This will involve programming certain tasks yourself or hiring a freelance developer to do it for you. First, you will need to choose a wallet in which to receive payments (keep in mind different wallets support different coins). Next, you will need to create an account on an exchange if you wish to convert your crypto funds to fiat.

Then, you will need to complete a few web development steps to actually implement the payments on your ecommerce site in a safe and secure way:

• Create an interface for the user to make their cryptocurrency payment
• Generate new addresses to receive coins
• Ensure customer information is secured safely
• Transfer the funds from your wallet to the exchange
• Exchange your coins for fiat on the exchange

Option #2 –

The second option is a little more expensive and involves integrating one of the many reputable cryptocurrency payment providers into your ecommerce shop. The biggest advantage is that they take on the responsibility of completing the setup, processing the payments and converting to fiat currency. This is a great option if you want a standard solution with the ability to customize down the road.

Option #3 – If your ecommerce stores is on WordPress, Shopify or a similar platform, you can use a plug-in to implement and accept cryptocurrency. But keep in mind not all plug-ins are created equal, so you really need to do some research before committing to one. Make sure it’s up-to-date, has impressive ratings and a significant user base.

Accept Cryptocurrency Payments, Grow Your Business

Are you ready to customize your payment solutions and provide your customers with an exceptional experience? Accepting cryptocurrency payments and increasing your revenue is safe and easy using Pinwheel crypto gateway services.

• No hidden charges or recurring fees
• Lowest fees in the industry
• Worldwide payments
• Downloadable reports on demand
• Real-time balance & transaction history
• Live exchange rates
• Secure checkout

For more information on how to get started, the latest industry news, and updates on cryptocurrency payments, checkout the reviews Best Payment Providers has to offer.