Enter 2023 on a winning note by implementing crypto payments into your business model. Not only can you enjoy similar successes to the likes of Travala, Etsy, Whole Foods, and many more, but your business can also tap into a number of additional benefits.
Incorporating crypto payment solutions will open your business to 300 million customers worldwide using cryptocurrencies while also giving you a competitive edge. With the benefits ranging from growing your target audience to lowering payment processing fees, learning about accepting crypto payments for business should be on every entrepreneur's radar.
In this guide, we’re going to run you through everything you need to know with regard to how to accept crypto at your business, from setting up a crypto wallet for business to integrating it into your checkout process.
The Pros and Cons of Accepting Crypto Payments For Business
Crypto payments provide seamless international transfer of funds making it an ideal solution for businesses catering to a global market. Whether you’re selling products or services, growing your target audience beyond the confines of your national borders is always good for business.
Below we outline several pros and cons of accepting crypto payments for business, providing an overview of the implications of this decision.
Advantages
- Tap into a wider audience
There are roughly 300 million customers worldwide who enjoy paying for goods with cryptocurrencies. Tap into this global target audience by simply opening your business up to accepting crypto.
- Save money on transaction processing fees
Credit card processing fees range from 3% - 4% while cryptocurrencies don’t charge a processing fee. If you use a crypto payment gateway (recommended) these typically charge 1%.
- No chargebacks or payment disputes
Similar to cash, crypto transactions are final, so you can say goodbye to chargeback fees (costing businesses roughly $25 per chargeback) and disputes. Oobit’s payment gateway offers businesses a zero chargeback policy.
- Holding crypto offers investment opportunity
Payment gateways provide customers with the opportunity to either immediately cash out the transactions, or to hold the cryptocurrency in a secure location. When holding crypto, this presents a unique investment opportunity should the price of the asset increase.
- Seamless international transactions
Customers in global markets can tap into your business offering without having to pay exorbitant exchange rates or be concerned about lengthy transaction times. Cryptocurrencies, whether Bitcoin or stablecoins like USDC are processed immediately making both local and international payments more seamless.
Disadvantages
- Regulation is still taking effect
While cryptocurrencies are legal in most parts of the world (even accepted as legal tender in a few countries), governments are still building the necessary regulatory framework around digital currencies. Accepting crypto payments for business requires business owners to keep an eye on their jurisdiction's progress in setting these ground rules.
- No fraud protection
While fiat currency payments are governed by bodies and anti-fraud units, cryptocurrencies don’t have such setups. Business owners will want to look at payment gateways that have the correct regulatory approvals and hold insurance on their digital assets.
- Volatility
A great concern for any business is what the market volatility might do to the crypto business bank account. To combat this ensure that you use a payment gateway that can immediately convert your crypto to fiat and deposit the funds directly into your bank account.
How To Accept Crypto As A Business In 5 Simple Steps
In these 5 simple steps, you can open your business up to a global market and put your business one step ahead of your competitors. Here is the basic outline:
1. Understand cryptocurrencies and the regulations in your country
Before you incorporate cryptocurrency payments into your business, thoroughly research them to gain a solid understanding of what they are and how they operate. Next, read up about crypto regulation in your area to understand what this might mean for your business and tax requirements.
2. Decide which cryptocurrencies you wish to accept
Following your research on crypto, consider which cryptocurrencies you would like to integrate into your business. Some merchants opt for Bitcoin as it is the most widely adopted, while others prefer Bitcoin Cash as it provides a faster and cheaper alternative.
3. Create a business crypto wallet and choose a payment gateway
A crypto wallet is essential to accepting cryptocurrencies, while a payment gateway makes the process much smoother. Do your research and select a payment gateway that you feel comfortable with and that aligns with your intentions. Here is a great place to start. These gateways will also be able to assist with any crypto-related questions, like can a business buy crypto.
4. Incorporate crypto in your payment options
In order to accept crypto at your business you will need to enable Bitcoin or other crypto payments in your checkout process. This might involve displaying your crypto wallet address or downloading a plug-in or app. Your chosen payment gateway can advise on the best option specific to your business model.
5. Update your accounting software to integrate these payments
Ensure that your accounting department is up to date and has integrated the necessary software to track and manage any crypto payments. A key detail in learning how to accept crypto as a business is understanding how to integrate crypto into your systems and accounting practices.
Ready To Open Your Crypto Business Bank Account?
In just a few simple steps, with the help of Oobit’s business team, you can seamlessly integrate crypto payments into your business and reap the rewards. Sign up for an Oobit business account today and a representative will get in touch to guide you through the process.