Are you looking for a way to accept crypto payments? If you’re accepting credit cards, it’s time to start thinking about the future of payments.
The world is moving towards cryptocurrencies, and we want to help businesses prepare for that transition. With our help, you can set up your store so that customers can pay in crypto to help you understand how this new technology works and why it matters.
It’s not just about being able to accept Bitcoin (and other cryptos) today – it’s also about preparing yourself for what comes next. Cryptocurrencies are going mainstream, and they will soon be as common as cash or credit cards when making purchases online. You don’t want to get left behind! The following information will help you accept Bitcoins on your Shopify store today!
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What are cryptocurrencies?
Cryptocurrencies or digital currencies are essentially money stored in an electronic format. They can be used to buy/sell products and services, but they’re more than that because they open up the possibility of interacting with the financial system. The biggest draw is decentralization – removing any middleman from the equation. For example, when you buy a book on Amazon, a fraction of your money goes to cover transaction fees, and another fraction goes to pay for any other services they provide (such as shipping, etc.). Lastly, some more fractions go towards covering their operational costs.
Cryptocurrencies allow us to skip all this hassle by cutting out the middleman responsible for mediating transactions. You might think this is a radical idea, but I assure you it’s not.
Types of Cryptocurrencies
There are three main types of cryptocurrency:
1. Cryptocurrencies that serve as a means of exchange, such as Bitcoin and Litecoin. They’re the most popular type of cryptocurrency because they’re fast, secure, and aren’t controlled by any single entity. Consequently, they are widely accepted as a currency.
2. An exchange is possible using tokens representing a particular asset (such as gold). Ethereum is the most famous example of this type of cryptocurrency.
3. Cryptocurrencies that serve as a store of value, similar to how we interact with fiat currencies today. Ripple is the most famous example of this type of cryptocurrency because it’s designed around speed and convenience rather than regular transactions.
Bitcoin’s goal was to create a native currency that could be used to buy goods and services online. That’s why any single entity doesn’t control Bitcoin – it’s decentralized, meaning it has no central authority or management system. Instead, Bitcoin is maintained by a community of people spread out worldwide called miners.
Name of some cryptocurrencies
- Ethereum (ETH)
- Polkadot (DOT)
- Cardano (ADA)
- Litecoin (LTC)
- Stellar (XLM)
- Binance Coin (BNB)
- Dogecoin (DOGE)
- Monero (XMR)
- Binance Coin (BNB)
Bitcoin: what is it and how does it work?
Bitcoin is a peer-to-peer digital currency that offers many benefits over traditional systems.
It allows people to send money anywhere in the world, usually within minutes. No central authority issues this cryptocurrency, and transactions are encrypted and recorded in a public ledger called the blockchain. In addition, the blockchain prevents duplicate spending and ensures funds can only be spent by their rightful owner.
Users can start using bitcoin today by downloading an application or visiting a website on their computer or mobile device, without any political or national boundaries. These bitcoin exchanges allow people worldwide to buy and sell bitcoins while converting their home currency into U.S. Dollars (USDT) through various exchange rates available on these exchanges.
How to accept crypto payments with Shopify?
Accepting Bitcoins as the payment method (and other cryptocurrencies) on your Shopify store is easy.
All you need to do is:
1. Create a free account at any payment’s gateways like Coingate.com and verify your email address;
2. Click “Activate Account” and create API Token keys;
3. Install CoinGate app from the Shopify App Store (it’s free);
4. When the installation is finished, you will see the “Enable CoinGate” button in your app dashboard;
5. Click it and follow the instructions.
That’s all! You can now accept payments of cryptocurrency on your Shopify store.
Why should you start accepting crypto payments today?
Most cryptocurrencies are designed for fast, secure, and anonymous transactions. This makes them the perfect tool for e-commerce payments, especially in countries where you can’t use PayPal or Stripe.
Low Processing Fees
Cryptocurrency payments might be a great alternative to traditional payment methods because they offer low transaction fees (compared to 2-3% processing fees of credit cards).
International Transactions Made Easy
Cryptocurrencies are a great way to do business with people from other countries because they have low exchange rates and transfer times.
Bitcoin transactions typically settle within 10 minutes, allowing merchants to receive real-time payments quickly.
All Bitcoin payments are encrypted and use secure wallet addresses that mask user and transaction information.
Accepting cryptocurrency payments on your Shopify store will diversify the payment methods available there and keep your customers happy.
Disadvantage of Cryptocurrencies
A Word of Caution: Cryptocurrencies Emerged with Their Own Set of Challenges.
Anonymity And Security
The system is built so that transactions are anonymous and secure, but the system’s anonymity has led to its popularity with people who engage in illegal activities.
You should be cautious if you’re thinking about accepting Bitcoins (and other cryptocurrencies) because they aren’t issued or managed by any government. Unfortunately, this means no one can guarantee their stability, reliability, safety, or value.
Also, if Bitcoin goes down, all transactions are irreversible and can’t be refunded – there’s no one you can contact to reverse the transaction or ask for a refund. In other words, it’s your responsibility to accept payment on time and send the product before the Bitcoin transaction is completed.
One of Bitcoin’s major flaws is how it was created. It uses a process called “mining” to achieve distributed consensus on valid transactions, which slows down transaction times.
Another challenge is that the cryptocurrency market is still fairly unstable. If you are thinking of accepting cryptocurrencies in your business, keep in mind that they are being traded 24/7 on exchanges all over the world, so there’s no telling when a significant change could happen. But if you do take advantage of this opportunity, you will have the best of both worlds.
Despite all drawbacks, accepting bitcoins and other crypto payments with CoinGate is a great way to attract new customers worldwide.
The benefits of accepting cryptocurrency for your business are numerous. So, more and more entrepreneurs are choosing to take advantage of this opportunity.
Commonly asked questions about crypto payment processing on Shopify.
What are the advantages of using cryptocurrencies for customers?
Cryptocurrencies offer faster, cheaper, and more reliable transactions. You can use this feature if you run an online store that accepts payments from countries where credit cards aren’t accepted.
How does cryptocurrency work?
Processing cryptocurrency payments is built around the blockchain system. The blockchain acts as a ledger where all transactions are recorded and validated by miners. These transactions are then bundled into blocks, added after other transactions to the blockchain, forming a continuous chain of blocks. Miners validate each block using proof-of-work before being added to the blockchain.
Miners and nodes contain a copy of the blockchain and maintain its integrity by validating new blocks and adding them after other transactions on the network. After a transaction is added to one block, it will be validated and propagated through all other nodes on the web as part of their permanent record.
When a transaction is successfully validated, new blocks are added to the blockchain by miners.
What are the challenges of implementing crypto payment processing on Shopify?
There are quite a few points that you should consider before venturing into accepting cryptocurrency for your business. Cryptocurrencies have been associated with many scams and illegal activities because of their anonymity. If you decide to buy cryptocurrencies, you should be very careful and ensure that your customers are getting what they paid for.
Do I need a Bitcoin wallet before accepting cryptocurrency?
Yes, we recommend that you register with an online wallet to keep your cryptocurrency secure and accessible at all times.
Is there a transaction fee when using cryptocurrency?
Most cryptocurrency payment processors have transaction fees usually included in the exchange rate. However, these fees are negligible compared to credit card processing, as high as 3%.
Tips for accepting other cryptocurrencies on your Shopify store
First, determine whether your Shopify store will accept cryptocurrencies. If you run a business that needs to process transactions from multiple countries, taking cryptocurrencies can speed up customers without credit cards.
Once you have decided on which cryptocurrencies to take, you should look into how each one works and compares to Bitcoin. You can learn about the differences on the official websites for each cryptocurrency.
Another hurdle that you may need to take is finding a cryptocurrency payment processor. Many companies are popping up that are willing to help with this problem, but not all are trustworthy.
They are some of the cryptocurrency payment gateways that allow Shopify store owners to instantly take Bitcoin and other cryptocurrencies.
You can also look on Shopify’s apps directory for updates on cryptocurrency payment processing.
Using a mobile app to take crypto payments
Shopify now offers a mobile app that allows customers to pay for goods and services using Bitcoin (BTC), Litecoin (LTC), or Bitcoin Cash (BCH). Download the app from Shopify’s App Store.
What you need before paying with cryptocurrency:
A smartphone and internet service.
What you need to do:
You will receive an API key as soon as you sign up with BitPay, Coinbase Commerce, or Coin Pocket. Then you need to enable crypto payments on your Shopify store. You can find more information about this on their respective websites. After that, you will create a payment button by following the simple steps provided on their websites.
How are cryptocurrency payments processed?
It is necessary to provide the customer with a QR code for them to scan or use your provided payment link for them to send payment. The customer does not have to enter any credit card information, address information, etc. The crypto payment gateway apps process most of this automatically behind the scenes, which is why you don’t need to worry about chargebacks.
How long do crypto payments take?
It can take up to ten minutes for a transaction to complete and be processed by the app and then sent over to your Shopify store. This may vary depending on how congested the network is at that time. Once the transaction is complete and confirmed, the funds will be available in your Shopify store account.
Other things to take note of:
Many cryptocurrency payment gateways feature a fee system that can lower costs for merchants. This means that you should consider the advantages that each one offers compared to other payment providers such as PayPal or Stripe.
In addition, you may need to wait for a few days before cryptocurrency transactions that customers have sent to you are verified as completed. It is done automatically by the payment gateways after checking with the blockchain. During this period, your money will be kept on a secure platform and cannot be accessed by others or moved.
Why does it matter?
Today, anyone in the world can send and receive any amount of money without going through a bank. The Internet has given us a global platform for sharing and communicating information – cryptocurrencies will do the same thing for money. We think that’s pretty interesting!
People love using cryptocurrencies, but many merchants are still wary of accepting them because they’re unsure what to expect. Now you can be the first mover in your industry by being a pioneer who accepts Bitcoin and other cryptocurrencies.
The benefits of cryptocurrency payments go beyond just accepting payments from people around the world. There are also no chargebacks, meaning you won’t have to worry about those customers who make a purchase and then report it as ‘fraud.’
In addition, there is no risk of accepting payments from countries that are sanctioned by your bank or payment provider.
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Accepting cryptocurrency payments isn’t a fad – it’s the future. It can be troublesome and expensive to move between different currencies every time you do business with people outside your own country, which is why it makes sense to keep all your money in one currency. Coinbase Commerce, BitPay, and CoinPayments allow you to keep all your money in crypto, making accepting cryptocurrency payments on Shopify even easier for merchants.
For more information on how cryptocurrency can benefit your business, why not contact us today? We look forward to hearing from you.
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