Implementing eCommerce Cryptocurrency Payments: a quick guide
Cryptocurrency can be defined as digital assets that are not controlled by a bank or governmental authorities and use encryption to regulate their own use. With the advent of digital wallets, users and businesses have started using instant payment gateways breaking the traditional way of conducting transactions. However, many businesses in eCommerce haven’t yet adopted cryptocurrency payment methods on their websites. Bitcoins, Ethereum, and other cryptocurrencies have become a crucial part of the business world and have also affected everyday life. The day is not far when eCommerce cryptocurrency payments are established as the mainstream alternative and become the talk of the town. It is very convenient for online businesses across the globe to set up eCommerce cryptocurrency payment as another option, just like the other available alternatives, including Debit Card, UPI, PayPal, Visa, Mastercard, Net banking, etc.
How can eCommerce stores accept cryptocurrency as payment?
Any eCommerce business can start cryptocurrency payments by using a crypto payment processor. A crypto payment processor can be defined as any payment processor or gateway which provides cryptocurrency payment as an alternative. It is a straightforward process that can be summarized as follows:
- Setting up the crypto payment processor for eCommerce cryptocurrency payments.
- Prices for the products are shown in fiat currency, viz. dollars, pounds, rupees, etc.
- The users will select the cryptocurrency payment option.
- The product's price is converted into the crypto value equivalent to the fiat currency value.
- After this, the transaction is safely processed through the payment gateway.
- This transaction is recorded on the blockchain ledger.
There are several advantages of using cryptocurrency payments in eCommerce. Significant benefits are highlighted below:
- No Chargeback Costs – E-Commerce cryptocurrency payments eliminate chargeback costs. Bitcoin transactions cannot be reversed, and thus without the trader’s consent, funds cannot be transferred back. This prevents eCommerce from fraudulent activities and eliminates any chargeback cost. Unlike other forms of currency, transactions made in cryptocurrency are recorded in the digitized blockchain ledger, which is permanent.
- Low cryptocurrency transaction fee – The traditional financial institutions and government authorities are not in charge of regulating cryptocurrency transactions. They are conducted between the buyer and the seller without any middlemen. As a result, the cryptocurrency transaction fees are lower than other payment methods.
- Accessibility to newer markets – eCommerce cryptocurrency payment is direct and straightforward and increases one’s reach to newer markets. Underdeveloped markets find these transactions easy and attractive due to many such reasons. There is no bank or government regulation, and online businesses can tap those consumers who are not enrolled in a conventional banking system via cryptocurrencies. This can result in increased sales volume and expanded business in various regions.
- Secure recording of transactions on the blockchain ledger – This ledger is known as DLT or distributed ledger technology. All transactions are securely documented in this ledger and can be verified over and over again. The information is encrypted and cannot be edited. Blockchain technology ensures all entries are published with each transaction.
- Decentralized control – cryptocurrencies are not controlled traditionally, i.e., by banks and/or governments. Thus, the eCommerce cryptocurrency payments and transactions are verified by thousands of computers dwelling within a decentralized network.
In order to get started, an eCommerce business website needs to integrate a cryptocurrency payment processor. Many eCommerce platforms already have these integrations, such as Magento, Shopify, WooCommerce, and BigCommerce.
There are various cryptocurrency payment processors or gateway solutions which need to be considered based on the following criteria:
- What is the rate of transaction fees?
Those platforms with lower cryptocurrency transaction fees are preferred.
- What are all currencies supported?
The more the number of currencies supported, the wider the market reach.
- What are all countries supported?
Businesses can expand in more countries if the payment processors are supported in more nations.
- What is the payout frequency?
Payout frequency refers to the pattern in which incentives are paid out. This refers to the payment processor's options - if it makes the transaction weekly, monthly or quarterly.
- What is the level of customer support provided?
The higher the level of customer support, the higher the level of user satisfaction. Thus, a business should opt for a gateway that has a strong customer support service.
After considering the criteria mentioned above, an eCommerce business can choose the best payment processor for its operations like UniPayment.
After the payment processor is integrated, the eCommerce business needs to inform people regarding their integration. The business needs to market its technology growth and progressiveness to its users. Signs like “cryptocurrencies accepted” should be present on the website. For instance, Paypal launched ‘Checkout with Crypto, ’ which is a feature allowing US citizens to use cryptocurrencies like Bitcoin, Ethereum, Litecoin, and bitcoin cash to pay several online businesses. Users can also convert cryptocurrency into fiat currency without additional transaction fees.
Besides direct integration, other options are:
- Adding Payment buttons – An eCommerce business can add a payment button to their website to integrate cryptocurrencies as a payment method.
- Custom Integration – An API solution can be built by a business that can be directly associated with the users’ shopping cart.
- Invoices – With the help of an invoice generator tool, a business website can send invoices to the customers instead of maintaining the shopping cart.
- Workarounds – This entails connecting with the customers directly and convincing them to use cryptocurrencies like BTC, Litecoin, or Ethereum.
Any eCommerce business planning to integrate cryptocurrency payment processors should ensure that their system is safe and secure. Strong passwords should be used for the same, and the business should incorporate multi-factor authentication to protect from any fraudulent activity. An offline wallet can also be used, such as a Bitcoin flash drive.
Technology is a double-edged sword. However, it possesses the power to create and transform the world as we know it. Cryptocurrencies, therefore, are capable of changing the eCommerce businesses and international trading systems altogether. Everyone needs to keep up with the changes that can be very beneficial. By implementing eCommerce cryptocurrency payments and the payment processor integration on the websites, eCommerce retailers and companies can adopt a progressive approach to the market and the world. Ignorance in this area and era is definitely not bliss. Therefore, all businessmen and consumers need to keep themselves informed about the many changes in virtual currency usage. After all, cryptocurrency has become the present and will be the future of this world.