Accepting Cryptocurrency Payments in 2022: Benefits, Downsides, and How to Get Started

You’ll want to consider who you’ll collaborate with and how you’ll integrate, as well as your cash-conversion strategy.

The appeal of instant riches might overshadow the fact that Bitcoin was initially used in a mundane transaction –

to purchase a pizza. Even the most delicious slice won’t come close to the 10,000 Bitcoins that order cost in 2010 – a sum that is now worth more than $500 million.

Accepting cryptocurrencies at a business has become easier and more common over the last decade. However, it is still more difficult than merely gaining it as a person. Finding a payments partner (probably), working through integration questions, and planning
your cash-conversion strategy are all on the to-do list.

 

WHO ACCEPTS CRYPTOCURRENCIES? 

The first high-profile firms to take cryptocurrency payments reflected the technology’s inception: companies such as Microsoft and PayPal have been accepting it to some level for years. Overstock pushed blockchain adoption a step further, supporting new
blockchain initiatives in addition to allowing users to buy a new side table, juicer, or whatever else they want using Bitcoin. In recent years, less technologically advanced organizations have begun to go online, including Whole Foods, Home Depot, and the
NBA, to mention a few.

Global firms like these can generate headlines if they start accepting cryptocurrency, but millions of tiny businesses all around the world accept payments as well, grabbing some of the more than $1 billion in daily Bitcoin transactions alone.

 

WHY ACCEPT BITCOIN AND OTHER CRYPTOCURRENCIES?

Payments that are faster and less expensive can be appealing to established firms. Crypto payments may potentially promote the development of new business models, similar to how the rise of card payments facilitated the growth of online shopping.

WHAT TO THINK ABOUT BEFORE ADOPTING BITCOIN AND OTHER CRYPTOCURRENCIES

Should you do it alone or use a payment tool? Peer-to-peer transactions are a fundamental component of cryptocurrencies. In other words, you do not require the services of a third-party processor. This is the most cost-effective option; for example, Bitcoin
is free to receive and can be free to transfer.

Creating a payment procedure, on the other hand, is a time-consuming task that necessitates technological competence.
Cryptocurrency payment gateways  solve this demand by allowing businesses to easily begin taking cryptocurrency payments. You’ll almost certainly need to fill out an application
with information about your company, and further information may be required if you intend to convert cryptocurrency to cash through the service provider.

These services can act as payment processor substitutes because they can accept credit card payments. You’ll need both if you wish to take card payments and cryptocurrencies.

 

WHICH CRYPTOCURRENCIES DO YOU PLAN TO ACCEPT?

There are thousands of cryptocurrencies, however not all of them are accepted by all services. Bitcoin, the most popular, is widely accepted, as are other coins such as Ethereum, Litecoin, and Stellar Lumens.

 

WHAT ARE THE TAX AND ACCOUNTING IMPLICATIONS?

If you’re thinking about accepting cryptocurrency, chat to your accountant or bookkeeper first.

First and foremost, you should be aware of the tax ramifications, especially if you intend to keep any cryptocurrency you get.

Second, consider how information from your point-of-sale system will be delivered to your accountant. If you use a cloud-based system like QuickBooks or Xero, for example, you’ll want to know if your crypto payments tool interfaces with it.

 

CONVERTING TO CASH – WHEN, HOW AND IF?

This can have a significant impact on your business because large price swings imply the value of your cryptocurrency can soar — or collapse — in a short period of time. Will you keep whatever cryptocurrency you receive indefinitely? Will you convert to
cash right away? Will you do it on a regular basis?

These questions are especially critical if your business relies on steady financial flow. Once you’ve decided on a strategy, be sure your preferred crypto payment gateway can put it into action.

 

OTHER OPERATIONAL CONCERNS?

Crypto payments firms’ services, such as monitoring price volatility and building up a modern user experience, might assist smooth out implementation challenges. A firm, on the other hand, will have operational issues to address.

 

HOW TO START ACCEPTING BITCOIN AND CRYPTO PAYMENTS: 

There are basically two ways to get started in accepting cryptocurrency payments:

 

1. USING HOSTED CHECKOUTS

Hosted checkouts are the easiest way of integrating with a
crypto payment gatway. Hosted checkout is when your checkout page is hosted by your preferred crypto payment gateway. When the customer clicks the “checkout” button, they are redirected to the new domain. Their order information and cart total appears on
the new page as well. This is where they submit their payment information.

 

2. API AND PLATFORM INTEGRATIONS

Another method is integrating an API based payment processing platform for merchants. Some specific platforms are built with programmatic integration with online shops and e-commerce sites in mind.  This should also provide user interface to create charges
in your web browser, bill customers, and get paid without the use of any code. 

 

For a review of the suggested crypto payment gateways, here’s the list of the
best cryptocurrency payment gateways in 2022

 

Cryptocurrency offers a cutting-edge payment system that is technologically advanced. If you start accepting cryptocurrency immediately, your company will be ahead of the curve. It will benefit your brand, produce positive publicity, and attract tech-savvy
clients and staff to your organization.