Non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), and blockchain technology gained much popularity in the past few years. Cryptocurrency has become a popular way to pay for goods and services. With stores offering various payment options, staying on top of the competition is essential.
Many e-commerce stores are now striving to become more digitally forward. With the tough competition, standing out is key to getting the buyers to see and consider your store. More recently, e-commerce stores have been looking at accepting crypto payments for online transactions.
Why Accept Crypto Payments
For some, accepting cryptocurrency can be a gamble. This digital currency doesn’t have backing from most banks or governments. That’s why most transactions are peer-to-peer. However, there are numerous advantages to why it should be part of your online store campaign.
Millennials are said to be the age group that owns a considerable chunk of cryptocurrencies. According to Morning Consult, millennials account for 57 percent of cryptocurrency owners. This age group comprises digital commerce. Based on Statista, 32 percent of millennials shop online.
Regardless of the products you’re selling, it’s crucial to protect the identity of your customers. Cryptocurrency payments allow them to remain anonymous.
The currency is globally accepted. This means your store can cater to anyone, anywhere in the world.
With an existing e-commerce platform, the integration of cryptocurrencies is pretty straightforward. You just have to choose the payment gateway you will integrate into your online store.
Another beauty of using cryptocurrencies is the irreversibility of the transactions. This means chargebacks are uncommon. Merchants can avoid fraudulent purchases. For fraud to happen, the hacker should have access to the private key of the transaction ID.
Faster and cheaper transactions
Since the payment gateway is the sole intermediary for the transactions, the fees are relatively cheaper and faster than traditional ones.
Considerations for Online Store Crypto Integration
Given this, it makes perfect sense to offer cryptocurrencies as a payment option. When you decide to integrate crypto payments into your store, there are a few things that need to be taken into consideration.
Choosing the right payment gateway
Payment gateways are the intermediaries between the customer and the merchant. They’re responsible for the transactions. They are the ones to manage refunds, disputes, and other administrative tasks associated with accepting payments on behalf of your business.
There are many different types of payment gateway. But the most common are:
- Stripe: This is one of the most popular options for online e-commerce platforms for its global credit card integration. Create an account before you can start using Stripe for your crypto payments.
- PayPal: This service allows businesses to accept funds in more than 200 countries through its integrated digital wallet interface called Braintree Payments. It also offers merchant tools such as shipping rate calculators so that you don’t have to worry about anything when accepting crypto as payment from your customers.
Securing crypto wallets
Security is essential when it comes to accepting cryptocurrency payments. Since cryptocurrencies are decentralized, they’re impossible to hack. However, since there needs to be a use of payment getaways, the payment settlement does not happen in a decentralized manner. Hacking can happen.
Securing your crypto payments is critical to ensure you’re not exposing your customers to possible theft. Ensure the payment gateway you use passes the cryptocurrency security standard (CCSS). They must also be compliant with this protocol. The CCSS is responsible for managing the security protocols of cryptocurrency wallets.
Accepting multiple cryptocurrencies
Accepting payments is the easy part. Once you’ve integrated your crypto-enabled platform with any of the above, customers can pay for their purchases using any cryptocurrency or fiat currency stored in your wallet.
You can accept payments in Bitcoin, Ethereum, and other cryptocurrencies. This is an excellent way to get more sales because you’ll be able to offer your customers discounts for paying with crypto. It’s also vital that you convert these payments into fiat currency so that you can use them to simplify payments with your suppliers or couriers. This option is helpful if these partners don’t accept cryptocurrency as payment.
Offering ease of use
Another thing worth considering is how easy it will be for customers who use cryptocurrencies instead of traditional currencies. If people have trouble using their favorite coins at checkout, this could create problems.
One of the common problems they encounter is knowing how much cryptocurrency they need to purchase. Making this information available allows them to make an informed decision about their purchase.
Making API calls
The volatility of cryptocurrency is a risk. Exchange rates can change quickly, and you’ll need to be ready for these changes when integrating crypto payments into your store. If you’re using a wallet service like Coinbase or Blockchain, there will be an exchange rate at the time of purchase.
These exchange rates can be different from what’s advertised on their website. Adjust prices regularly, so customers don’t get charged more than expected when paying with crypto. Otherwise, they might feel cheated.
The best workaround is to track live crypto prices with a reliable data source. You can do this by using cryptocurrency data APIs. These services can provide your customers with real-time cryptocurrency pricing data.
An API is a set of routines, tools, and protocols that allow one computer system to interact with another computer system over a network. Using an API, you can easily integrate cryptocurrency payments into your store without updating the code on your website.
Set Up a Digitally Forward Online Store With Cryptocurrencies
Now that you understand the importance of cryptocurrency payment processing and how to integrate one for your store, start implementing now!
It’s best to use a cryptocurrency payment gateway with a good track record to complete this process. These services will enable you to accept multiple cryptocurrencies and provide a wide range of features. Features should include custom branding options and fraud prevention mechanisms, such as multi-factor authentication. Once you navigate the decentralized market, it should be easier to manage payments. Before you know it, you will already be starting a DAO, giving you more inclusivity and benefits.