How does one accept Bitcoin payments on a website?
With digital currencies or cryptocurrencies edging towards the mainstream, this is a question on a lot of people's minds.
Using Bitcoin payments for your business website is a decision that's up to you, but if you're heading for a "yes", then it's best to know the correct way to set it up.
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Bitcoin is currently the most common cryptocurrency accepted by businesses for payment.
Cryptocurrency is decentralized digital money that is based on blockchain technology. As the name suggests, this currency is encrypted. There are over 5,000 cryptocurrencies in circulation, with the most popular ones being Bitcoin and Ethereum.
Unlike the US dollar, UK pound, and other currencies, there is no central authority that maintains and manages the value of cryptocurrencies. These tasks are instead widely distributed among a cryptocurrency's users on the internet.
While you can use cryptocurrency to purchase regular services and goods, many people choose to invest in cryptocurrencies the way they would in other assets, such as precious metals or stocks.
During the Covid-19 pandemic, many businesses turned to cryptocurrency as a safe way to to store cash reserves amid economic uncertainty. This is because Bitcoin and other cryptocurrencies are considered immune to inflation, since there is a fixed supply and its value cannot be manipulated by governments. However, it is important to note that its value is volatile and relying on it comes with risks.
One of the reasons for Bitcoin's popularity is that using it can be a way to avoid banks' transaction fees and lengthy processing times.
If you tick off some or all of the following reasons, then it may be a good idea for you to use Bitcoin.
Accepting Bitcoin will be a seamless part of your brand identity.
Your target audience is males between the ages of 25 and 44.
You are selling a high-ticket item.
You strongly prefer low transaction fees. (The majority of Bitcoin transactions cost between 0% and 1%. In contrast, the average credit card transaction sets you back between 1.5% and 3.5%.)
If people are wary of Bitcoin, it is not without reason.
Due to curiosity, your customer service team may become inundated with questions they may not have the time or expertise to answer.
If a virus corrupts the data or a hard drive crashes, then the wallet file can be lost.
Risk of unknown technical flaws.
So, you've weighed the risks and decided to accept Bitcoin payments. Welcome to the pioneers club.
Here's what you're going to need.
1. A Wallet
To hold any cryptocurrency, Bitcoin included, you need a wallet. This is similar to the wallet apps you may have on your phone. However, it is specific to cryptocurrency.
This wallet will allow you to sell, buy and hold various types of cryptocurrency, such as Bitcoin, Tether and Ethereum.
You will receive a unique private "key" that will help maintain safety and accessibility. The key will also link with other apps to make for more seamless transactions.
When a customer buys something in cryptocurrency on your website, the money will come into your wallet. You will be free to exchange it for a currency of your choice.
2. Platforms and Integrations
How the payment gateway integration is done will depend heavily on the platform that you website is hosted on. For major platforms, such as Magenta, WordPress and Shopify, you can use different plugins for a quicker setup.
3. Transparency and Communication
If you're going to introduce a new payment method to your customers, you're going to have to communicate with them.
Explain the value proposition and ensure that they are aware of new changes. They should know exactly what they're getting into.
This isn't just a way to make things easier for your customers. It's also a way to establish your brand as clear, customer-centric and technically literate. This will lead to greater customer loyalty.
There are many Bitcoin payment processors and various manual methods to accept Bitcoin. We highly recommend digging deeper into these companies and methods to get a more comprehensive picture for what works best for your business.
To receive Bitcoin from someone (such as your customer), you need to give them your alphanumerical code. That is, your "address". It will allow someone to send Bitcoin right to your wallet.
BitPay is among your best options for accepting Bitcoin.
It offers various ways for your clients to pay, with hosted checkouts, embaddable invoices, payment buttons, and many plugins and integrations.
Furthermore, these are easy to set up, so you can start accepting Bitcoin payments without too much trouble.
BitPay also helps to protect you from Bitcoin's volatility. This is through its Zero Price volatility feature and daily bank deposits. There will be a 1% transaction fee, which is a pretty good offer.
Coinbase offers a quick and easy way for business websites to accept Bitcoin payments. It has a fantastic app and great compatibility with most eCommerce platforms.
Quick exchange from crypto to any currency of your choice.
High security and protects against currency fluctuations.
Flexible pricing options.
Essential tools such as payment buttons, eCommerce integrations, hosted checkout pages and invoicing.
CoinPayments is one of the longest-running services for crypto payments.
Acts as a payment processor for both online platforms and in-person transactions.
Supports numerous cryptocurrencies.
CoinPayment's plugins work with most major eCommerce services, including Shopify, OpenCart, Magento and WooCommerce.
Processing fee of only 0.5%.
PayPal is one of the largest online payment companies. It announced that customers would be able to pay merchants within the PayPal network with crypto. This includes Bitcoin, Bitcoin Cash, and Litecoin, among others. The cryptocurrency can be converted into fiat currencies, like euros and dollars.
Note that this means that merchants will not be able to accept Bitcoin directly. However, it will open the door for more people purchasing your goods and services while using Bitcoin.
If your target audience is interested in Bitcoin, then investing in a Bitcoin payment gateway makes sense. We hope this article has given you some insight into how to go about it.
BluEnt is a trusted provider of payment gateway integrations and business website development. We serve technology companies, consulting firms, and other large to medium-sized businesses.
Ready to integrate a payment gateway for your website? Contact us now!
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