A survey conducted by Deloitte revealed that more than 85% of merchants in the US consider it a priority to start accepting cryptocurrency payments. More than half of respondents plan to introduce this payment method within the next two years.
Let's take a look at why online stores need to plug in accepting cryptocurrency and stablecoins, what payment options are available for customers, and why crypto processing is the optimal way to receive payments.
Cryptocurrency and E-commerce
Companies that accept cryptocurrency claim to be modern brands and provide customers with an additional payment method. Such companies include Rakuten, AT&T and others. Read more in our article.
Despite market fluctuations, the growing popularity of cryptocurrency indicates an increase in its use, including payments for goods and services. If we were to characterize the ideal consumer who plans to increase their retail spending with cryptocurrency, it would be a male between the ages of 18 and 45 with a university degree.
The most popular cryptocurrency for online shoppers between 2021 and 2022 was Bitcoin. It was used by 79% and 65.5% of consumers respectively.
However, for 63% of shoppers, the reason they don't pay with cryptocurrency is because retailers don't accept it.
Why Online Store Should Accept Cryptocurrency Payments
Here are a few reasons why you should consider making cryptocurrency payments available:
- Geographic expansion. Cryptocurrency makes it much easier to accept international payments and avoid major financial restrictions.
- Reducing the risk of being blocked. Crypto transactions are not controlled from a single central authority, as is the case with traditional currencies.
- Reduced costs. The commission for performing transactions in cryptocurrency is significantly lower than for transactions in fiat currency. The savings are especially evident when it comes to international transfers.
The Main Ways to Accept Cryptocurrency Payments
There are several ways to connect the acceptance of cryptocurrency on the website, each of which has its own features:
- transfer to a cryptocurrency wallet;
- development of payment module;
- crypto processing.
Let's analyze each method of receiving cryptocurrency payments in detail.
The mechanism of this method is the simplest one. You give the buyer the address of your cryptocurrency wallet, and they send funds to it. The main advantage of this option is simplicity and no need to use additional tools. The main disadvantage is that it is not very convenient for the buyer. They need to correctly enter the address and select the network. Otherwise, the transfer will not go through. This can negatively affect the conversion rate.
In addition, when accepting money directly to the wallet, it is difficult for the seller to classify payments. If about 20-30 transfers come in during the day, you need to track who each one came from and for what.
When using this method in an online store, cryptocurrency payment does not differ much from regular transactions. After confirming the order, the buyer chooses a settlement option, receives a wallet address and pays for the goods or services.
A private module developed by the company is convenient for both the client and the entrepreneur. The method allows you to control transactions. However, for the merchant it involves large integration costs, and its implementation may take more than one day.
Crypto processing is the acquiring of cryptocurrencies, which works similarly to traditional acquiring. All transactions go through an intermediary service and are processed by software tools. The entrepreneur pays a commission from each transaction for this. Comparing to tranditional one, crypto acquirung has much lower fees that helps business to cut costs.
The main plus is the full automation of processes. In addition, it is possible to track and sort payments. In fact, crypto processing is a cryptocurrency payment system with all its advantages. At the same time, the connection costs are much lower than developing your own module.
How to Choose a Cryptocurrency Payment System
If you have decided to accept payments using a crypto processing platform, you should pay attention to the following points when choosing it:
- Security. You need to consider the possibility of two-factor authentication and cold means of storing assets.
- Commission. Most crypto processing services have a commission for each transaction of 1%. Some have a higher commission, but they can offer more functionality.
- Withdrawal timeframe. Fast cashout allows you to receive funds at any time convenient.
- Ease of integration. If the service has clear instructions, modules for common CMS and operational support — this is a guarantee that there will be no problems with its connection.
- Interface. Convenience of payment for goods and services is a factor that can influence the conversion rate.
- Reputation. Before choosing a crypto processing platform, you need to read the reviews about it. From them, you can get information that is not available in official sources.
- The number of tokens with which the service works. The more they are, the wider the choice of buyers.
How to Connect Crypto Processing with CryptoCloud
CryptoCloud is a crypto processing service that can be used to accept and process payments in BTC, ETH, LTC, USDT, USDC, TUSD and other currencies. Its main advantages: free connection, commission from 0.4%, withdrawal of funds within a few minutes and easy integration.
The service offers such features as manual account creation and transaction analytics.
You can learn more about the advantages and functionality in the article: «CryptoCloud crypto payment gateway: a full review».
To start using CryptoCloud:
- Register on the website with your email address.
- Add a project. To do this, click the button of the same name on the left side of your profile, fill out the form, choose a cryptocurrency and payment acceptance method.
- Integrate the service with your website. This can be done using a structured API, a ready-made CMS-based module or an HTML widget.
The final stage is to test the service. You can find the step-by-step instructions here.
Accepting Cryptocurrency to Increase Business Competitiveness
Cryptocurrency as an additional payment method increases conversion to purchase. Especially if the target audience of the business is young people who are interested in new technologies. Using a secure and fast payment method means being one step ahead of the rest.
CryptoCloud is a cryptocurrency payment gateway that allows you to accept payments on website, online store, app and Telegram bot. The service is constantly developing and adding new cryptocurrencies. Register in the CryptoCloud personal account and study the FAQ section to get a full picture of the system's capabilities.