How to implement cryptocurrency payments in e-commerce websites
Cryptocurrencies like Bitcoin are becoming increasingly popular. People often buy goods and services with cryptocurrency because it offers an alternative payment method. Businesses can accept crypto payments to reach new customers and increase sales.
Cryptocurrencies are becoming increasingly popular among consumers and merchants alike. People are looking for ways to spend their cryptocurrency and are more willing to pay for goods or services with crypto. Merchants can accept crypto payments through various means, including wallets, exchanges, payment processors, merchant accounts, and ATMs.
What is cryptocurrency?
Cryptocurrencies are a digital form of money stored on a public ledger called a blockchain. It is based on cryptographic techniques that allow users to transfer funds securely and anonymously. Cryptocurrencies are decentralized and cannot be controlled by governments or banks. Also, there are no transaction fees associated with using cryptocurrencies.
Bitcoin is the one most people have heard about; it’s a digital currency that allows you to transfer money online. You can send bitcoins to others through your computer, smartphone, tablet, or TV. Bitcoins and other crypto are stored in what is called a “wallet” on your device. Once you receive bitcoins, you can spend them online, withdraw them from ATMs, or exchange them for goods and services.
Many big names like Home Depot, Overstock, Microsoft, Starbucks and Whole Foods have included cryptocurrency in their payment options; which goes to show the popularity of cryptocurrency among customers.
Why should eCommerce stores care about cryptocurrency?
For eCommerce stores, the significant benefit of using cryptocurrency is its ability to provide a secure payment option that is not subject to chargebacks. There are no transaction fees associated with using bitcoin. Accepting bitcoin also makes your store more appealing to certain types of customers because you are giving them an incentive to pay with cryptocurrency instead of fiat currency.
Benefits of Cryptocurrency in eCommerce
Here are some of the specific benefits of accepting cryptocurrency in your eCommerce store:
The transaction fee for crypto payments is minimal
Although it sounds too good to be true, some crypto transactions charge minimal fees. For example, Bitcoin charges only 0.0001 BTC (about $0.0016) per transaction. This means that if someone buys something worth $100, they will only need to pay $1.60 in transaction fees, which means that cryptocurrency transactions are much cheaper than credit card companies which typically charge 2% – 3% + $0.30 per transaction.
Accepting cryptocurrency payments can open up a new segment of customers for you
With the increasing popularity of cryptocurrencies, many people want ways of spending their digital currencies or making profits from investing in them. Businesses can now accept crypto payments, tapping into this growing market and benefiting from the increased demand.
Accepting cryptocurrency payments is an excellent way for businesses to attract new customers. People who use Bitcoin and other cryptocurrencies are more likely to purchase from a business that accepts these forms of payment.
Securely recorded transactions with blockchain technology
Thanks to blockchain technology, every crypto transaction has a secure online record. Cryptocurrencies allow users to share their money through this Blockchain securely. Once a transaction has been completed, it is recorded so that an item in the blockchain becomes available for purchase.
A blockchain is a list of connected data items called blocks. When a customer pays for something using cryptocurrency, an entry is made into the blockchain. Other computer systems will verify that the cryptocurrency hasn’t already been spent, strengthening the digital currency against corruption. Because the blockchain preserves a record of each transaction, data entered into the blockchain can never be removed, modified, or corrupted.
How to use Cryptocurrency in eCommerce
Cryptocurrency complements eCommerce very well because it appeals to digitally savvy customers. It offers them a fast, easy and secure way to purchase products and services online. Many retailers accept cryptocurrencies because they offer an easy alternative to traditional methods of paying for products.
As an eCommerce retailer, you should view cryptocurrency the same way you view your business. It’s an additional option for those looking for a faster, more convenient way to pay for goods and services.
There are a few payment gateways that support cryptocurrencies, such as BitPay and Coinbase Commerce. They usually have an API for you to integrate with your website platform, so customers can easily and swiftly pay for the goods in your eCommerce store using their crypto wallet.
To put it simply, you’d just be adding a new payment button for your users, and though the process might sound different, it can be even faster and easier than paying with a credit card. One thing we do recommend is having a converter that would update the prices of the crypto of choice according to its most recent price since crypto can vary in price often.
Here are a few basic things you’ll need to start accepting crypto payments on your eCommerce website:
- A crypto “wallet”
This is not too different from your actual bank app or the wallet app for iPhone. Crypto wallets let you receive, hold and exchange crypto like Bitcoin, Ethereum, and Tether. Most wallets will let you hold multiple types of crypto and have either very low transaction fees or none at all.
- A crypto “wallet”
- Know your website’s platform
Depending on the eCommerce platform your store’s website is built with, whether that’s WooCommerce, Shopify, Magento, or any other. This is important because some crypto payments are better suited for some platforms than others.
- Choose a crypto payment gateway
You want to choose one that is both user-friendly and has seamless integration with your store’s platform. Some can be installed on your site as a plugin, making the process very fast. Either way, you should always check the documentation for the details and compatibility of your site.
How to accept payments in cryptocurrency
If you’re accepting cryptocurrency through your own wallet, you’ll need to create a digital wallet. You can download an app like Coinbase Wallet or MyEtherWallet to help you manage your funds securely. Or, if you prefer to keep all of your cryptocurrency offline, you can buy a hardware wallet like Trezor or Ledger Nano S.
These devices will allow you to store your private keys safely offline. You can also use a third-party payment processor like Coinbase or Bitpay to save time and money. These companies can instantly convert your cryptocurrency to fiat currency while avoiding the risk of losing coins due to price fluctuations.
Choosing an appropriate wallet and provider can be tricky. Remember that not all providers are trustworthy since anyone can start their very own cryptocurrency trading exchange platform! If you’re looking to accept cryptocurrency right away, with minimum hassle, there’s a quicker solution. You can create your own wallet using a web browser. Once you’ve done this, you’ll need to sign up for an exchange.
There are many exchanges out there, but Coinbase is probably the best option for beginners. After signing up for Coinbase, you can deposit funds into your account and then buy Bitcoin, Ethereum, Litecoin, and other cryptocurrencies.
Once you have set up your crypto wallet, then it’s time to integrate the payment gateway to your site. As we mentioned before, you can most likely find a plugin that you like and intall it to your site. The installation process can widely vary from one plugin to another, so you’ll have to check the documentation specific to the one you choose.
If you can’t find a crypto payment plugin that you like, there are many cryptocurrency payment tools that offer other options like payment buttons, custom integrations and invoices.
The key is to find a solution that fits your needs. Plugins do an excellent job for most sites, but some sites might require different solutions. If you run into some trouble integrating these tools with your eCommerce, then it might be time to get some professional help.
Hiring a marketing agency to integrate the crypto payment gateway
There are two main options to get your store’s website to accept crypto payments: doing it yourself or having a professional team do it.
If you have the skills and knowledge to program the crypto payment gateway into your site and are sure of those skills, then, by all means, you could do this on your own; on the other hand, if you’re not an expert, it’s better to enlist help for a developer or marketing agency who already has its own dev team for this job, as there are many small details in making the integration that needs to be set up carefully. It could go wrong without proper knowledge of what you’re doing.
Choosing a wallet and provider can be a tricky process. Remember that not all wallets and exchanges are reliable since anyone can start their own cryptocurrency trading exchange platform. If you’re interested in doing this, you can look into hiring an agency to do the integration for you.