How do small businesses accept payments in cryptocurrencies

According to Google Trends , interest in Bitcoin and other cryptocurrencies is now at its peak. For this reason, the number of ATMs and vending machines working with them is growing, which are located throughout the world. Now, according to Coin ATM Radar, there are more than 1,500 physical cryptocurrency ATMs in a total of 59 countries, and their number is growing every day. Technology-following business owners are aware of the growing demand for cryptocurrency support payments, and they are looking for solutions to accept Bitcoin and other popular tokens as a means of payment. And, as for online commerce, and for ordinary stores.

This article is intended, first of all, for small business owners who accept the fact that cryptocurrency has enormous potential in terms of attracting new customers and entering other markets. (And if in doubt, you can familiarize yourself with our explanation of why cryptocurrencies, though, are not a “bubble”). The text below describes how to accept payments in cryptocurrency online or offline using the example of several popular payment solutions that can be implemented by a business of any size without any serious costs.

Let your customers know that you accept cryptocurrencies

Do not expect your customers to ask you whether you accept cryptocurrencies, for example, Bitcoin, as a means of payment. Tell them yourself! A simple sign on the door that reads “We accept Bitcoin” or “We accept Ethereum” is guaranteed to be noticed by customers who are looking for an opportunity to pay with a cryptocurrency, not a fiat (fiat is any national banknotes, - Ed. These same people are likely to be the ones who tell their surroundings, for example, through social networks, about the new business friendly cryptocurrency world.

You can also take an extra step and order signs from a company like Cryptocables (ed.). The more attention a crypto community will attract, the more free advertisements through word of mouth you will get from them in return.

How to accept a cryptocurrency payment

If you manage a real store in a conventional brick or concrete building, or sell your products at the local vegetable market, you can turn your smartphone or tablet into a cryptocurrency wallet. There is another option: purchase a POS terminal with support for cryptocurrency payments.

Mobile cryptocell

Mobile crypto wallet (hereinafter simply referred to as “mobile wallet”, - ed. Note) is an excellent, invaluable tool that allows you to accept payments in clients in cryptocurrency. At the same time for work he needs only a smartphone or tablet. Most mobile wallets work the same way as their fiat brothers: you specify how much you want cryptocurrency as payment, the wallet generates a QR code. The buyer scans the code using the application already on his mobile device and confirms the completion of the transaction to complete the payment transaction. In the future, you can even send a customer a check to his email address.

Now the most popular mobile wallet is CoinBase . Some alternative solutions include the Blockchain Bitcoin Wallet or Xapo Multicurrency Wallet .

Cryptocurrency POS-terminal

POS-terminals with cryptocurrency transaction support will be useful for companies that accept daily payments in cryptocurrency and need to print receipts and form a final invoice.

The solution may be several products. So, Coinkite offers a standalone POS terminal that accepts payments in Bitcoins. The terminal itself is running Android OS and is equipped with a touch screen, a GPRS / GSM module and a printer for checks. Coinify has developed a comprehensive solution for accepting payments by cryptocurrencies, both online and offline. Their PoS solution is suitable for many categories of vendors, ranging from stores and ending with taxi drivers. The Atlanta- based BitPay project (a global Bitcoin payment service provider) offers an easy-to-use Bitcoin API that can be connected to most existing PoS systems.

And these are just a few examples of ready-made solutions that various companies now offer for business owners who are ready to enter the “cryptocurrency market” and move to a new level.

How to accept cryptocurrency payments online

Today, there are many online cryptocurrency solutions for businesses. One of the most popular of them is Stripe . This is a payment gateway (Stripe's Bitcoin), which can be integrated with just a few lines of code. If you already use this solution for accepting payments using plastic cards, you will be pleased to learn that Stripe integrates Bitcoin transactions into the same reporting as the fiat cash flow. The service charges only 0.8% of a bitcoin transaction as a commission, however the minimum payment amount is limited to 5 dollars in equivalent.

If you want to accept not only Bitcoin, but also other cryptocurrencies, you should pay attention to CoinPayments . This payment provider has an integrated cryptocurrency gateway and currently accepts more than 75 altcoins (cryptocurrencies other than Bitcoin, for example, Ethereum or DogeCoin, - ed.), While charging only 0.5% as a commission for transactions. CoinPayments works with such popular e-commerce systems as Magento, WooCommerce or PrestaShop. This is so, some of the very voluminous list. Thanks to this service, merchants from the United States and the EU can safely use the services of their bank to process fiat cash flow, in parallel using the hot Bitgo cryptographs well protected from theft and loss to store the resulting cryptocurrency.

If you call other popular cryptocurrency payment providers, it is worth mentioning BitPay and Cryptonator , and the latter support not only Bitcoin, but also 10 altcoins, including Zcash and Dash.

How to protect yourself from fraudsters when taking cryptocurrency

Since cryptocurrencies are a target for various kinds of cybercriminals, businesses must do everything possible to ensure the safety of personal data and a decent level of confidentiality for their clients when they pay for goods and services using Bitcoin or other cryptocurrencies. At the same time, the business should be protected from new types of fraud, which appeared with the spread of cryptotechnologies.

It is not necessary to remind that the very essence of the technology ensures the security of cryptocurrencies, it does not help to avoid multiple “traps”. For example, some online stores prefer to use the services of specialized services to ensure an adequate level of security and the fight against fraudsters. One of these services, for example, FraudLabs Pro , but in fact there are quite a lot of them.

In the end, cryptocurrency as a means of payment can be taken as safely as payments using bank cards. It just requires additional education and training.

Should my business accept cryptocurrency?

Accepting cryptocurrencies as a means of payment has become quite simple, both online and physically. A number of companies in this market are now competing for customers, offering easy-to-use solutions that allow businesses around the world to accept payments in cryptocurrencies both on websites and in conventional real stores. Business owners who choose to accept cryptocurrencies as a means of payment can count on substantial dividends, since such information is actively distributed among members of the crypto-community through word of mouth and news. The essence of this active exchange of information is to notify the community about the emergence of a new business-friendly cryptotechnology. Due to the availability, immutability, low commission rates, and sometimes anonymity, new ways to use cryptographic transactions are or are invented literally every day and, obviously, we have yet to see what this technology is capable of.

A recent study by the University of Cambridge says that now (in 2017) from 2.9 to 5.8 million people worldwide used cryptocurrency wallets. There are also more than 100,000 merchants, including such giants as Microsoft, PayPal, DISH Network, Intuit and Overstock, who are loyal to cryptocurrency and trust bitcoin enough to accept it (as the main cryptocurrency, - ed.) As payment means.

With the emergence in this market of thousands of small enterprises, large corporations and entire countries, the widespread distribution of cryptocurrency is only a matter of time, as well as becoming them as a standard financial instrument.

But even though the benefits of using cryptocurrencies are obvious, there are still serious obstacles to their mass adoption. First of all, it is a low level of awareness and lack of understanding of technology by the general public, lack of regulatory documentation for cryptocurrency transactions and smart contracts, fuzzy legal status of cryptocurrency, technical problems, etc.

So far there is practically no solution to these issues But, the private blockchain, which is built by the Jincor team, will allow businesses of any size to easily get involved in cryptoeconomics without any legal, technical or operational difficulties, while cheap, regardless of whether you plan to work in B2C or B2B markets.

If you want to learn more about our product, you can read more information on our website or chat with the team and ask any questions in our English-language telegram channel .


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