As they should be, businesses are constantly on the lookout for new ways to stay ahead of the curve, and by accepting cryptocurrency they just might be able to find the next big move they need.
In the short timespan of just 12 months, the number of worldwide crypto owners went from 420 million people to 560 million and that number is still growing. That’s 6.8% of the global population.
This huge surge in adoption has caused interest to grow among e-commerce businesses who are excited to tap into the expanding crypto market.
But can and should an online store realistically accept cryptocurrency?
Let’s take a look and figure it out together.
And you can also learn more here about how businesses are making the switch to crypto for even more information.
Crypto Payments vs Traditional Payments for Online Stores
Below we have added some key reasons why e-commerce platforms are paying attention:
First of all, cryptocurrencies aren’t tied to any single country or banking system, which means they can accept payments from customers all over the world without having to deal with complex currency conversions.
Second of all, traditional payment methods come with large processing fees while crypto transactions significantly lower these costs, ultimately making it more profitable for businesses.
Next up, crypto payments are usually processed within minutes, which is unlike traditional bank transfers, which take days.
And finally, as crypto adoption keeps growing, more customers are looking for businesses that accept digital currencies.
How To Accept Crypto Payments as an Online Store
Setting up cryptocurrency payments probably sounds complex at first, but modern tools have actually made it quite simple, even for beginners.
For online stores to start accepting crypto, they just have to follow these steps below:
Step 1: Partner With a Crypto Payment Gateway
Crypto gateways like Coinspaid, BitPay, and Coinbase Commerce allow businesses to accept cryptocurrencies easily and quickly.
They instantly convert crypto payments into local currency if needed, minimizing volatility risks.
Step 2: Choose Your Accepted Cryptocurrencies
Most of the popular options include Bitcoin, Ethereum, Solana, and stablecoins like USDT or USDC, which are both pegged to the US dollar.
Step 3: Set Up a Crypto Wallet
Just like a bank account, online stores need a crypto wallet to receive, store, and manage their cryptocurrencies.
This can be a custodial wallet or a non-custodial wallet where the store controls the private keys.
Step 4: Add a “Pay With Crypto” Button
Now the fun part. You can now add a “pay with crypto” button at checkout to give customers the option to pay with the crypto of their choice.
Benefits of Crypto Payments for E-commerce Stores
Well, there’s many benefits of accepting crypto as an online store, but below we’ve just listed the top five.
Acquire New Customers:
Cryptocurrency owners are always looking for businesses that align with their ideals of decentralization and payment flexibility. By accepting crypto, you can start attracting some of these users.
Less Payment Fraud:
Since crypto transactions are irreversible, they minimize the risk of chargebacks and payment disputes.
Lower Costs:
Unlike enormous credit card fees, crypto payment fees are often way cheaper than traditional payment processing fees.
A Competitive Edge:
As crypto adoption continues to grow, your store offering crypto payments will set it apart from competitors who are slower to adapt.
Easy International Payments:
This is perhaps the best part about accepting crypto. There’s no more worrying about crazy international transaction fees and currency exchange rates.
Risks of Accepting Crypto Payments
While the benefits obvious, accepting cryptocurrency does also come with a couple of minor challenges:
Volatility is the first and most common fear among businesses since cryptocurrencies are notorious for price swings.
A payment made in Bitcoin could lose or gain significant value in a matter of hours.
However, using stablecoins or payment gateways that convert crypto to fiat solves this problem.
Another minor risk is regulation, especially since cryptocurrency regulations vary widely by country and constantly change.
This is why businesses need to stay up to date about local laws and compliance rules.
A small user base is also an issue for some. Even though crypto is growing fast, it’s still not as widely used as debit cards. Not all customers are ready to pay with crypto.
Despite these risks, many businesses still find that the benefits outweigh the risks, especially with the right tools in place.
Should Your Store Accept Cryptocurrency?
If you’re an online store looking to expand globally, reduce payment costs, and attract modern customers (which should be all businesses), then the choice is clear.
However, businesses should still:
- Research and choose a trusted crypto payment gateway.
- Use stablecoins or automatic conversions to eliminate volatility risks.
- Stay updated on regulations to ensure compliance.
- Play with crypto payments on a small scale before a full rollout.
Final Thoughts
With partners like crypto payment gateways and wallets, businesses can easily offer safe, quick, and international payment options to their customers.
As cryptocurrencies continue to change the world, accepting crypto might just be the thing your online store needs to stand out.