Acceptance of crypto payments
- What Small Businesses Should Know About Cryptocurrency
- Benefits of accepting cryptocurrency
- Risks of accepting cryptocurrency
- Technical Barriers
- What is a Bitcoin Payment Service?
- How Does Bitcoin Payment Service Work?
- Bitcoin Payment Workflow: Step by Step
- Advantages of Bitcoin Payment Services
- Major Players
- A Threat to Existing Card Processing Services?
Cryptocurrencies are an advantageous method for payment; you can put together acknowledgements of payments in cryptocurrency utilizing the installment stage.
Cryptocurrency has solidly entered current life; it has since become a dependable and advantageous method for payments. On the off chance that you need to improve the proficiency of your business and increment change, connect cryptocurrency payment services.
What Small Businesses Should Know About Cryptocurrency
In 2017, absolutely everyone wrote about cryptocurrency, even the media from the FinTech world. It seemed to many ordinary people that soon it would be possible to pay for travel in public transport or in a supermarket. But 3 years have passed, and the mass distribution of the cryptocurrency has not happened. Why?
The first thing that comes to mind is that the business does not see potential in Bitcoin. However, this is not the case. More or less, Bitcoin payment services offer a possibility for traders and organizations to get payments in bitcoins from people for the labor and products being sold or conveyed. It works correspondingly to the preparation of a standard credit or check card payments, for certain points of interest to bitcoins. These were the results:
- 74% of respondents expect an influx of customers and a decrease in commission for acquiring
- 60% of entrepreneurs want to improve the status of the company due to the possibility of paying with cryptocurrency
- 52% think digital currency will increase the average check of customers
- about 50% believe that cryptocurrencies will allow the creation of new loyalty programs
In addition, the study showed why entrepreneurs are still not adopting digital currency in any way. Everything is very simple here - there are inconveniences for clients, especially in offline business. Most business owners also want fast cash out and comfortable POS payments.
Benefits of accepting cryptocurrency
- International payments. The cryptocurrency is international, its turnover is not as regulated as that of fiat money. Acceptance of crypto payments saves small and medium-sized businesses from many bureaucratic problems, simplifies calculations and investments.
- Lack of georeferencing. Often, buyers face the inability to pay for their purchase due to restrictions on international transactions. If the site accepts crypto payments, this problem disappears. This can significantly increase the number of customers.
- Transaction processing speed. Crypto payments are processed much faster than fiat ones. This is due to the lack of a large number of intermediaries in payment processing.
- Safety. Cryptocurrency payment is the safest payment method. The modern security system allows you to save funds even in case of hacker attacks.
- Commission size. Serving crypto payments has a much lower cost, so the commission for such transactions is usually much lower than for regular bank payments.
- Conversion increases. Cryptocurrency payment increases the number of customers. This can become your competitive advantage.
Risks of accepting cryptocurrency
- Malicious programs
The first of them were created at the time of the emergence of electronic payment systems. Now their counterparts are adapted to the cryptocurrency market and can be activated wherever such an opportunity arises.
- Hacker attacks
Cyberattacks are the second largest problem and a frequent occurrence in the world of developing cryptocurrencies. Hacker attacks are becoming more common and fraudulent methods are becoming more sophisticated. Bitcoin wallets and large sums that circulate on marketplaces have become especially attractive to thieves.
- Lack of legal framework and legal risks.
Bitcoins are intangible digital codes that have no ownership. If they are stolen from a virtual wallet, the owner can neither identify the thief (due to anonymity and decentralization), nor prove their right to the coins (due to the lack of a personal property law).
Amazon does not accept Bitcoin. But you can buy Amazon gift cards at Bitrefill with bitcoin and then spend on Amazon
Tolerating cryptographic money implies setting up a computerized wallet on an advanced cash trade, which could be in fact restrictive for entrepreneurs new to the innovation. Cryptocurrency is a data thick field with a generally high expectation to learn and adapt, which can introduce a huge deterrent when you're likewise attempting to maintain a business.
What is a Bitcoin Payment Service?
How Does Bitcoin Payment Service Work?
When creating an account for a client, it is necessary to generate and monitor a unique address (temporary wallet) for each payment. As soon as the payment is confirmed by the network, the API server transfers bitcoins from the temporary wallet to the specified wallet (your own or corporate, where it will be convenient for you to receive funds).
Each service has its own API, but the scheme looks approximately the same:
- Generate a payment by using a special link and passing the parameters.
- Create a Bitcoin merchant address to which money will be sent.
- Create a link of your system (callback), which will be called upon confirmation of payment.
- Specify the number of accepted confirmations of payment in Bitcoin network.
- Define the network commission level (optional field, by default - low). The higher it is, the faster the transfer will take place.
Companies such as AT&T, the Dallas Mavericks, Microsoft, Overstock, Tesla and Twitch all accept Bitcoin and other digital currencies in 2021
Bitcoin Payment Workflow: Step by Step
On average, the payment takes 15-20 minutes, and the payment for the client will look like this:
- The choice of a product or service.
- Billing the client (displaying the wallet number and the amount required for payment on the page).
- Transfer of funds by the client.
- Waiting for three confirmations and completing an order or service (in our case, this is replenishing the account of an advertising cabinet).
Advantages of Bitcoin Payment Services
- Safe online payments: there is no fraud or chargebacks. The network is designed in such a way that the sent payment cannot be returned, the reliability of the transaction is confirmed by users all over the world, and each transaction is encrypted.
- Favorable commissions: the cost of making a payment does not exceed 1%. And the larger the transfer amount, the less the loss.
- Anonymity: banks do not control clients' funds - no one has the right to block a transaction or add an extra commission.
- Unlimited payments: transactions are carried out in unlimited volumes, which is not allowed by other means of payment.
There are many services that allow you to accept bitcoins and other currencies.The most famous of them are:
- Blockchain (a key for working with the API is issued upon request).
- Coinbase (you must fill out an application and wait for approval).
- Bitmaps (open API).
A Threat to Existing Card Processing Services?
Is Bitcoin a genuine danger to Existing Card Processing Services? More likely than not.
Possibly in the extremely long haul, if Bitcoin individuals routinely utilized Bitcoin to execute, rather than leaning toward fiat currency, then, at that point BTC may get problematic to existing payment services. In any case, even all things considered, customers should be in fact clever enough to use Bitcoin with no assistance. A purchaser would have to make and deal with their own Bitcoin wallet to get products and goods. What's more, when received, the customer would then have the option to utilize bitcoin to pay for their stock/work costs in bitcoin, or would need to deal with the transformation to fiat money (for example USD).