Accepting Cryptocurrency In Your eCommerce Store

Cryptocurrency has taken the financial world by storm. Both large corporations and small businesses have taken notice, realizing that the use of cryptocurrency is no longer a passing trend. To stay competitive, businesses of all sizes should consider accepting cryptocurrency as a form of payment.

Cryptocurrency Defined

Cryptocurrency, also known as crypto-currency or crypto, is a type of currency that occurs in digital or virtual form and uses cryptography to secure transactions. It does not have a regulating authority but instead uses a decentralized system to record all transactions and issue new units. 

As a digital payment system, cryptocurrency does not need to rely on banks to verify any transactions. It is a form of “peer-to-peer system” that facilitates the ability for anyone to receive or send payments, anytime, anywhere. 

Instead of physical money changing hands, cryptocurrency payments exist as digital entries in an online database that records specific transactions. When cryptocurrency funds are transferred, the transactions are recorded in a public ledger. Cryptocurrency can also be stored in digital wallets. 

The way the name cryptocurrency came about is that it uses encryption to verify all transactions. What this means is that an advanced system of coding is involved when it comes to storing and transmitting cryptocurrency information between wallets and to public ledgers. The goal of encryption is to offer security and safety in making these transactions. 

One of the best-known forerunners of cryptocurrency is Bitcoin. Founded in 2009, it remains the most popular of all digital currencies. 

Advantages Of Using Cryptocurrency In Your E-Commerce Store

Besides placing your online store on the map as being innovative and forward-thinking, there are many benefits to using cryptocurrency as payment for your e-Commerce store. Let’s take a look at a few:

• Expands Your Market

If you haven’t discovered this, know that the cryptocurrency market has established a tightly-knit, enthusiastic community that wants to be the driving force for the worldwide adoption of this digital currency. 

By accepting cryptocurrency in your business, you are granting your business access to this very niched community. These consumers are tech-savvy and this customer base is growing worldwide. 

• Quick Transactions

One benefit of accepting cryptocurrency is transaction speed. Credit card systems can take a few days to batch and settle, while cryptocurrency payments often settle faster (timing varies by network and provider). That can give businesses quicker access to funds and help streamline cash flow. 

• Fees Are Low

Cryptocurrency fees vary depending on whether you accept payments into your own wallet or via a third-party provider. In some cases they can be lower than traditional card or PayPal fees, though this depends on the provider and conditions. 

• More Secure

When a customer completes a transaction with cryptocurrency, it is virtually impossible to reverse. Unless of course, you have the express permission of the merchant. Merchants can protect themselves even more from fraud since there is no middle power (bank) that has the power to withdraw money from your account without your permission. 

How To Begin Accepting Cryptocurrency 

So now you are convinced that if you don’t accept cryptocurrency, you may be missing out. Now the question is, how do you get started? So there are two ways to accept cryptocurrency in your e-Commerce store: this can be through your personal wallet or through a third-party payment processor.

If you choose to go down the route of a personal wallet, you need to first set up a virtual wallet. They can be downloaded to your phone or computer. You can even get a hardware wallet. A hardware wallet is a “physically safe” that securely keeps the cryptocurrency within the device, on a special hard drive. Within this secure hardware device, you can store a user’s private key. 

If you prefer, you can use a third-party payment provider to help manage the payment process, similar to how card processors operate. Some providers can convert cryptocurrency into fiat at the time of the transaction, which can help reduce exposure to price volatility so the amount you receive is closer to what you charged, even if the cryptocurrency’s value shifts during the transaction. 

Be At The Forefront Of Technology

If you want your business to be seen as forward-thinking, accepting cryptocurrency can be a step worth considering. Using reputable crypto payment providers with conversion features can help reduce exposure to price fluctuations. It can also help you reach a growing community of crypto users and raise your brand’s visibility, while managing some of the associated risk.

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Disclaimer: Bankful provides payment software and orchestration, and in some arrangements acts as the direct payment facilitator (processor of record). Processing eligibility and continued processing are determined at underwriting by the processor of record and its sponsor bank(s) under the applicable terms, which can change.