How to integrate cryptocurrency payments into your e-commerce platform
Many crypto companies in the UK and EU are already accepting crypto payments, and with the adoption of the MiCA rules, this will become even easier and safer.
If you want to keep up with your competitors and want to integrate cryptocurrency payments on your site too, you are on the right track. Let’s see how to do it. Looking ahead, there is almost nothing you need to do yourself.
What is a cryptocurrency?
Cryptocurrency is a type of digital money. Unlike regular money, it’s not controlled by any government or bank. Transactions are secured using complex coding techniques and are recorded on a technology called blockchain. The most famous cryptocurrency is Bitcoin. Other popular coins include Ethereum and USDT. In general, there are thousands of cryptocurrencies, but only 10-20 of them are universally used for payments.
As of 2023, it’s legal to receive Bitcoin payments in the US, UK, all countries of the EU and many other countries all over the world.
E-commerce platforms: What makes them different from other websites?
An e-commerce platform is a software application that allows businesses to manage their online sales operations. It enables merchants to sell products or services over the Internet to customers around the world, providing functionalities such as shopping cart, payment processing, marketing and SEO tools, and so on.
Basically, such platforms offer a quick and cheap way to create a store from a template. Many companies that want to sell products or services online use e-commerce platforms because they often meet the needs of small businesses.
Popular e-commerce platforms include Shopify, Magento, WooCommerce for WordPress, and BigCommerce. Each platform has its unique strengths and caters to different business sizes and types.
Why should e-commerce accept crypto payments?
According to the Triple-A 2022 report, around 6.2% of UK adults currently hold cryptocurrency, or approximately 4.2 million people. Today, in 2023, there may be even more of them. This is a large segment of clients, including your target audience. Crypto users like paying in crypto, and if you can offer such an opportunity, your clients would be more loyal to your business.
Moreover, crypto payments can be even more profitable than traditional payments. Cryptocurrency transactions are immutable, meaning they cannot be reversed once confirmed. This can protect merchants against fraud and eliminate the possibility of chargebacks, which are often a significant concern in e-commerce.
Crypto payments can also help you to pay less transaction fees and commissions (especially when it comes to large amounts and currency conversions). By learning how to prevent chargebacks, businesses can leverage crypto payments to not only protect against fraud but also to appeal to a growing demographic of tech-savvy consumers who value privacy, security, and the convenience of using digital currencies.
And don’t forget about the early adoption advantage! As more consumers use cryptocurrencies and more businesses accept crypto payments, early adopters may have an advantage by showing their willingness to embrace new technology.
The integration of crypto payments into e-commerce: A guide for merchants
Technically, in order to receive Bitcoin payment, it’s enough to have a cryptocurrency wallet and place its address on the site. However, this will be just as inconvenient as if you simply posted bank details on the site.
To simplify the payment process, merchants use special plugins and extensions. By integrating them into the payment page, you can improve your user experience and organize your bookkeeping. There are several cryptocurrency payment gateways available, and choosing the right one depends on your specific needs.
- Supported cryptocurrencies. Ensure the gateway supports the cryptocurrencies you want to accept.
- Fees. Look at the transaction fees charged by the gateway.
- Integration. Check how easy it’s to integrate the gateway into your existing e-commerce platform.
- Security. Make sure the gateway has robust security measures in place.
Some popular crypto payments services include BitPay, CoinGate and Whitepay. BitPay would fit for American business, and if your business is operating in the United Kingdom (UK) or European Union (EU), Whitepay would be the best option.
Whitepay is a European SaaS company offering cryptocurrency solutions for businesses and charities. They provide crypto acquiring, POS terminals, and payment pages. There are more than 140 digital currencies available, and all accounting is collected and sorted in the personal account.
Once you’ve chosen a payment gateway, you’ll need to integrate it into your crypto e-commerce. The exact process will depend on the gateway and platform you’re using, but generally, it’s the same. First, you will need to create an account with the payment gateway.
Install the payment gateway’s plugin or extension on your e-commerce platform. If you’re using a popular platform like Shopify, the payment gateway likely has a pre-built plugin or extension. Even if you are not, it’s still possible to integrate the crypto payments feature. Then, configure the settings to your liking. This usually involves deciding what cryptocurrencies you’ll accept, setting up your wallet, and so on.
All of that is done thanks to the gateway, so you basically don’t even need to have knowledge and experience of blockchain and crypto. If you choose, for example, Whiteswap, you just need to contact the service, and they will accompany you throughout the entire setup process.
The benefits of integrating crypto payments into e-commerce
Accepting cryptocurrencies on a crypto e-commerce platform has many advantages, allowing merchants to capitalize on the growing popularity and usability of digital assets. Below are some of the primary benefits:
- Greater market access. Accepting cryptocurrencies enables businesses to transact with any of the millions of cryptocurrency wallet users worldwide. This allows businesses to reach customers they might not have had access to through traditional payment methods, particularly in regions where banking services are less accessible.
- Lower transaction costs. Traditional payment systems often charge significant transaction fees. Cryptocurrencies, on the other hand, have flat fees, regardless of country and transaction amount, which can lead to cost savings.
- Elimination of chargebacks. Cryptocurrency transactions, once confirmed, are irreversible. This means that you can avoid chargebacks, which are a common issue with credit card transactions in e-commerce. This can lead to cost savings and less administrative hassle.
- Non-custodial payments. By accepting crypto payments, you can take control of their own funds, reducing the need for intermediaries. This also means that funds are available immediately, improving cash flow for the business.
- Potential appreciation. If you decide to hold some portion of their income in cryptocurrency, there is a potential for appreciation due to the rising value of certain cryptocurrencies like BTC or ETH in the long term. And if you don’t want to take risks, you can set up automatic conversion from cryptocurrencies to your currency (dollars, euros, pounds, and so on).
- Privacy. Transactions with cryptocurrencies can be made with greater privacy. For users concerned about privacy and data protection, this could be a motivating factor to choose businesses that offer crypto payment options.
- Innovation and reputation. By accepting cryptocurrency, a company can position itself as innovative and forward-thinking. This could enhance its reputation, particularly with tech-savvy customers who prefer businesses that keep up with the latest technological developments.
And finally, the main argument: you have nothing to lose. You don’t have to give up the traditional forms of payment to start accepting cryptocurrencies – you can accept them in parallel. And you don’t even need to understand crypto. It’s enough to contact Whitepay and leave a request. The Whitepay team will help you do everything you need to accept crypto payments easily.
Ready to integrate cryptocurrency payments into your crypto e-commerce platform?
In conclusion, integrating cryptocurrency payments into your crypto e-commerce platform offers several advantages and no drawbacks. It expands your customer base, lowers transaction costs, eliminates chargebacks, and provides greater control over funds. Accepting cryptocurrencies also positions your business as innovative and forward-thinking, appealing to tech-savvy customers.
By choosing a suitable payment gateway and following its integration process, you can easily receive Bitcoin payments without extensive knowledge of blockchain. Embracing this growing trend can benefit your business in terms of profitability, reputation, and market access.
