The cryptocurrency world has been gaining a lot of attention over the past two years. Since the Bull Run of 2017, more people and merchants continue to take an interest in the cryptocurrency. Several online retailers like Overstock and Steam already accept Bitcoin as a form of payment. The cryptocurrency is also gaining more adoption from the e-commerce space due to the increasing number of people now use Bitcoin to pay for goods and services.
Although some merchants wish to adopt Bitcoin as a form of payment on their platforms, they believe their lack of or limited knowledge of the cryptocurrency sector is a hindrance. However, it isn’t. Setting up your platform to accept Bitcoin payments is not that hard. We will look at the different ways you can integrate Bitcoin payment into your business.
Why accepting Bitcoin is easy
Bitcoin has been gaining adoption over the past few years due to the features it offers. Bitcoin allows people to transfer funds anonymously, with their personal details not visible to the public. Cross-border transactions are also easy with Bitcoin as you can send funds to any part of the world in less than three hours. The ease at which international payments are made makes Bitcoin an attractive payment method to online merchants.
Despite the belief of most people, accepting Bitcoin as a payment for goods and services is relatively easy. You don’t need to know much about the cryptocurrency to accept it as a means of payment. The cryptocurrency sector has advanced over the past few years and services are being offered that automatically converts Bitcoin to fiat currencies. Here are some reasons why you should accept Bitcoin payment for your business.
- It is easy to accept BTC payment as you only need a Bitcoin wallet address to do this
- Several payment processing companies now help merchants process Bitcoin payments
- You can decide to keep Bitcoin as an investment
- Bitcoin payment is faster than a wide range of other traditional payment methods
- The transaction fees involved with Bitcoin are meager.
Due to Bitcoin’s decentralized nature, any business can adopt it as a means of payment without any restrictions. It is particularly useful for e-commerce sites and those that sell digital goods and services. It is also suited for sites that receive international payments since it is faster than receiving payment from banks.
How to accept Bitcoin payment
There are two significant ways you can accept Bitcoin payments for your products. You can either receive it directly or use a payment processing company.
Accept payments manually
The first option is to accept the Bitcoin manually. One of the most significant advantages of Bitcoin is that third parties are not needed when receiving a payment. Transactions can occur directly between the two parties involved in a trade. If you wish to accept Bitcoin directly, then this method is for you.
Contrary to popular belief, accepting Bitcoin is relatively simple. All you need is to get a Bitcoin wallet and generate an address for the transactions. The Bitcoin address should be given to your customers, and they would make the payment. You will receive the funds directly into your wallet and process the customer’s order afterward.
Using this method, you will be accepting Bitcoin without using any middleman. You will also get the opportunity to store your Bitcoins in any wallet of your choosing and exchange them for fiat currency when you wish.
Using a payment gateway
Although cryptocurrency transactions can occur without third-party interference, payment gateways have become popular over the past few years. The payment gateways accept Bitcoin on behalf of the client and transfer the fiat equivalent to them. The payment processing companies like BitPay enable merchants to receive Bitcoin payments, transform them into bank withdrawals and in return, charge them a transaction fee.
When receiving Bitcoin directly, you will have to take care of invoicing and record-keeping. However, the payment gateways take care of invoicing and record-keeping for you. Thus, all you have to do is register with them and send the attached wallet address to your customers.
Questions regarding Bitcoin payment
Despite the popularity of Bitcoin, some people still doubt accepting them as a means of payment. We will address some of those concerns here.
What happens if a company accepts bitcoins for payment, but the price falls?
Bitcoin is known as a volatile asset, which is the reason why some merchants are yet to accept BTC payments. They are afraid of the drop in value overnight after accepting Bitcoin payments. If the price falls after receiving Bitcoin payment, the best thing to do is to hold on to it for a while. The market will eventually bounce back, and your funds would be recovered in full.
You should display the price of your goods in fiat currency. This way, the value of Bitcoin might alternate over time, but your customers would pay the equivalent fiat currency value.
Where do I exchange Bitcoin for fiat currency after accepting direct payment?
You can exchange your Bitcoin for fiat currencies on cryptocurrency exchanges like Coinbase. You can also trade the Bitcoin for fiat currencies on peer-to-peer platforms like LocalBitcoins. You can also use the services of over-the-counter exchanges to get your fiat currency.
What are the transaction fees?
For direct Bitcoin payment, the transaction fee depends on the amount in question. However, Bitcoin transactions usually have a meager transaction fee. When you use a payment gateway, they charge a certain percentage (usually 1%) for processing your transactions.