As the adoption of cryptocurrencies continues to grow worldwide, many small business owners are looking for ways to tap into this new market. Accepting cryptocurrency as a payment option can open your business up to an entirely new customer base. In this post, we will discuss the key steps any business can take to start accepting bitcoin, ether and other digital currencies.
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Choosing a Payment Processor
The first decision is choosing a cryptocurrency payment processor to handle the transactions. Look for processors that support the major currencies like bitcoin, ether, litecoin and more. Ensure they offer intuitive payment buttons or widgets that can easily be integrated onto your website or point of sale system. Cryptopostage.info is an excellent online platform that allows users to buy postage with bitcoin and other 50+ cryptocurrencies.
Setting Up Wallets
Next, you’ll need to set up digital wallets for each cryptocurrency you wish to accept. Major processors like Coinbase Commerce and BitPay offer merchant wallets that securely store funds. Be sure to carefully protect any private keys or backup phrases for these wallets. Consider keeping the majority of funds in “cold storage” solutions not connected to the internet for optimum security.
Determining Pricing
Pricing goods and services in cryptocurrency requires determining exchange rates that are fair for both customers and your business. Many processors automatically calculate rates relative to fiat currency prices. You can also set fixed rates that don’t fluctuate with market prices. Just be sure rates remain reasonably competitive to traditional payment methods.
Displaying Payment Options
Make it clear on your website, invoices and point of sale that cryptocurrency is welcomed. Add prominent payment buttons or banners promoting supported coins. Links should go directly to payment pages within your processor’s system to ensure a smooth checkout process. Consider lowering or waiving cryptocurrency processing fees as an incentive during the initial onboarding period.
Promoting to Customers
Once set up, promote your new payment channels through email newsletters, social media and on-site announcements. Highlight benefits like no chargebacks, lower fees than credit cards, and faster global settlements. Focus on perks for customers in targeted cryptocurrency communities. Track metrics like cryptocurrency sales volume over time to gauge interest and demand.
Taxes and Reporting
Be aware of cryptocurrency taxation rules within your jurisdiction. In many areas, coins are treated as property with capital gains/losses applying to transactions. Consult an accountant on proper tax procedures for receiving, converting and liquidating digital currencies each tax year to remain compliant.
With the proper planning and integrations, accepting cryptocurrency is an achievable goal for most small businesses seeking new growth opportunities. Tap into this emerging market and its tech-savvy customer base by kicking off acceptance of bitcoin, ether and more digital currencies today.
Nathaniel is a cryptocurrency blogger and investor. He has been blogging about cryptocurrencies since 2017 and considers himself an expert in the space. Nathaniel also invests in cryptocurrencies and believes that they will become more widely accepted as time goes on.
