Using cryptocurrency as a means of payment is an extremely appealing opportunity for both businesses and clients, with more and more people using crypto for paying online. If you’re considering joining the digital currency revolution and accepting cryptocurrency at your business, this guide will provide an overview of what you need to know.

Crypto Payment Processing: Definition & Overview

Crypto payment processing technology is a contemporary payment method allowing customers to pay for online goods and services using cryptocurrencies such as Bitcoin, altcoins, and stablecoins. Today, companies in more and more industries start to accept Bitcoin payments for their products and services. According to research conducted by Crypto.com, 60% of both merchants and customers were interested in transacting with cryptocurrencies in 2022, and this percentage is expected to rise further.

Using cryptography for processing payments is convenient for customers and advantageous for merchants. By accepting cryptocurrency payments from their customers, merchants can avoid excessive commissions and attract more customers who prefer to transact with cryptocurrencies. Every year, an increasing number of companies are integrating payment solutions that accept Bitcoin and altcoins. The most popular and reliable assets used for payments are still Bitcoin, Ethereum, Doge, and the stablecoin USDT.

How To Select The Right Crypto Payment Processor And Start Accepting Crypto Payments?

After understanding the concept of cryptocurrency processing and its benefits for accepting payments, the next step is to select a trustworthy crypto-processing service. 

Consider the following factors:

  • Cryptocurrencies That Are Currently Available

There are numerous cryptocurrencies that may be exchanged on multiple cryptocurrency exchanges today. Still, not all of them are supported by cryptocurrency processing services. The more currencies you accept, the more customers you will attract; therefore, multicurrency is essential when selecting a crypto processing provider. Also, ensure that your processor has a volatility risk control system, or VRCS, which will allow cryptocurrencies to be converted to stablecoins connected to fiat currency.

  • Commissions

When connecting with any service provider, commissions are one of the most problematic things to deal with. Many cryptocurrency processing businesses include variable tariffs that allow users to select the ideal set of required features, including low commissions. The charges, however, can vary substantially depending on the blockchain network via which the transactions are done. This must be considered when operating on different blockchain networks.

  • Exchange Platform

Cryptocurrencies are still relatively new, so fiat continues to dominate the global financial market. Crypto fans throughout the world anticipate cryptocurrency replacing fiat money in everyday life, but that future is still a long way off, and fiat money is still required to purchase many things. Most products and services cannot currently be purchased using cryptocurrency. As a result, people must frequently change crypto into ordinary money for home expenses. That’s why numerous cryptocurrency processing firms allow you to convert cryptocurrencies to cash and back.

  • Flexibility 

In modern times, the Internet can be accessed through a plethora of devices: computers, tablets, cell phones, and other means of managing digital information. Additionally, multiple operating systems exist, with Windows and Mac being the most common for computers and iOS and Android for mobile devices. It is vital to locate a reliable crypto-processing provider offering tailored versions for each system and device.

  • High Security

Security is paramount for both crypto payments and financial assets. The prevalence of cybercrime pushes companies to find solutions to safeguard customers’ funds and prevent theft. In the crypto sphere, various security protocols enhance system security, resist DDoS attacks, and encrypt users’ personal data. Therefore, choosing a service provider that ensures the safety of personal data and money when accepting Bitcoin is essential.

  • Location & Audience 

Businesses offer a diverse range of services to benefit society. In today’s competitive market, geographic coverage is a crucial factor in attracting customers and partners. The wider a company’s reach over countries and continents, the greater its success. When selecting a crypto processor for business operations, it is essential to consider the provider’s service availability worldwide.

What To Consider

Bitcoin payments have significant drawbacks that must be considered. The first among them is volatility, with the unpredictable and uncontrollable fluctuations of crypto assets causing great concern for investors and companies alike. Compared to gold, Bitcoin’s volatility is particularly high. 

Fraud is also a significant issue, as the popularity of cryptocurrencies makes it an enticing target for hackers, fraudsters, and criminal gangs. While data encryption systems can help in this fight, there are still cases where entire crypto exchanges are hacked

Last but not least is the issue of anonymity. While it may seem attractive to some users, it can also increase the risks of loss and prevent your money from being stolen, as there’s no third-party regulating cryptocurrency transactions. It’s essential to be aware of these risks before using cryptocurrency as a means of payment.

Bottom Line

According to a prediction by Deutsche Bank, developed countries may see a shift towards cryptocurrency payments instead of traditional fiat currency by 2030. This means businesses that embrace cryptocurrency now will have a crucial edge over their competitors. Cryptocurrency payment technologies will increasingly facilitate more business opportunities, both online and offline. Take advantage of the benefits of this growing trend. The sooner you incorporate cryptocurrency payments into your website, the more you stand to gain from the forthcoming transformation of the business landscape.