Customers love having options when shopping online. In fact, 52% of all online shoppers expect to see a variety of payment options when they check out, and eCommerce businesses that deliver those options see a 20% boost in conversions.
Giving your shoppers the choice to pay with cryptocurrency on top of traditional payment options is a great way to show you’re tuned in to what buyers want. However, the world of crypto is still relatively new to most businesses. That’s why we’ve created this guide to help demystify 10 common challenges of accepting crypto in eCommerce.
By learning about crypto payments now, you’ll differentiate your business from your competitors by providing cutting-edge cash alternatives.
1. What to Do with Your Crypto After Payment
Until you’ve experienced it, crypto payments are wrapped in mystery. Where does the crypto go? How do you manage your operations and business expenses when the value of your earnings can change based on fluctuating crypto markets?
Business accounts made specifically for crypto payments address these concerns, so you can easily:
- Hold crypto in your account’s wallet.
- Use crypto for business expenses (like paying for shipping).
- Convert crypto to fiat (US dollar or USD) or to a stablecoin (a cryptocurrency pegged 1:1 to fiat).
Setting up crypto payments allows you to open up new options that you may be able to leverage for further benefits.
2. How to Display Crypto Prices to Customers
There are numerous options for integrating crypto prices. Plugins like WooCommerce can help connect eCommerce websites to crypto payment gateways.
Your customers see the price of your goods in USD. If they select a cryptocurrency payment option at the checkout, they’ll be shown the current value in that currency. If they don’t pay right away, that price will continue to adjust to the current crypto conversion price down to the second.
3. Fears About Crypto Legalities
Crypto is legal to use for buying, selling, and trading on registered exchanges, but it is highly regulated, like stock markets and other financial platforms. In the early days of crypto, lawmakers in different countries were unsure how to classify this new technology, and there will continue to be discussion about changes in the future.
But this much appears to be settled: As long as businesses treat crypto the same as any other payment and pay taxes—which may include capital gains taxes—there’s nothing to worry about.
As with all things crypto, be sure to stay aware of rules in your state and have legal advisors you can reach out to for continued guidance.
4. Deciding Which Cryptocurrencies to Accept
There are thousands of different cryptocurrencies to choose from, and it seems like people are raving about some new coin each week. How do you know which ones are the best to accept from customers?
Popular cryptocurrencies like Bitcoin, Litecoin, and Monero have been good choices for several years, but it’s important to stay in the loop about crypto news and any events that might affect the market. When it comes to crypto, we recommend doing your own research and seeking professional advice when making these decisions.
Generally speaking, people’s confidence in blockchain technology is based on longevity. Bitcoin, the first major cryptocurrency, has built the most loyalty and continues to dominate the market. By the same logic, Litecoin and Monero are good options as well since they were created shortly after Bitcoin and are known for their reliability.
5. Fluctuating Cryptocurrency Prices
Many businesses are afraid to offer crypto payment options because of the volatility of crypto markets. This is an understandable concern, but it helps to understand that many view these fluctuations as a feature, not a flaw.
While low-volume and sketchy cryptocurrency projects tend to go up in value when first released, their value decreases drastically over time and rarely comes back up—much like penny stocks. Reputable cryptocurrencies with a large user base like Bitcoin tend to go up in value over time while seeing significant short-term price fluctuations, making them highly investable.
If there wasn’t a way to convert crypto payments to fiat, that would absolutely be one of the biggest disadvantages to accepting cryptocurrency as a payment method. Fortunately, there’s an easy solution. A business crypto account can convert from crypto to fiat or stablecoins, so the volatility doesn’t impact your bottom line.
6. Getting Set Up to Accept Crypto as a Business
Setting up your website payment options, opening a crypto account, learning about conversion and taxes—it sounds like a lot to figure out.
But it’s actually pretty easy to set your website up for crypto payments these days. Popular website plugins help you connect your site to payment processing and a payment gateway, so the process is a lot more familiar than you might think.
7. The Crypto Learning Curve
As with all new technologies, crypto has a learning curve. It involves so many different elements that educating yourself can feel daunting.
Yeah, this one is real—at first. When you see how empowering it is to put your crypto to use, however, like using it to pay for shipping and other business expenses, we bet you’ll get sucked in. Once people get past that initial beginner bump, they tend to find crypto fascinating and valuable.
8. Answering Customer Crypto Questions
When you let your customers know you take crypto payments, there are bound to be questions. What if they ask questions you don’t know the answer to?
Before crypto payments go live, take the opportunity to educate yourself. Establish an FAQ that answers the most common questions, including your plan for issuing refunds. Demonstrate that you’ve thought this through. Remember: Every opportunity to interact with a customer is a chance to win a sale.
9. Lack of Crypto Regulatory Clarity
Multiple agencies deal with rules surrounding cryptocurrency. Everything from the underlying technology (blockchain) to the types of licenses required for different crypto-related businesses changes over time. The crypto industry is actually pushing for clearer rules, but the government is left scrambling to keep up in certain cases—leading to questions about the regulatory future.
The good news is that the general consensus indicates that regulations will continue to favor protecting user rights and encouraging businesses to use crypto responsibly, especially since that leads to additional tax revenue. Just make sure to keep an eye on developing legislation.
10. Finding Crypto-Savvy Advisors
Even though people started using Bitcoin in 2009, most regulations and tax rules are only a few years old. It’s important to find legal and tax advisors who stay apprised of crypto guidelines as they evolve. This can be difficult to do.
But crypto is emerging as a specialized field. While that might make it more difficult to find an expert than simply calling the nearest lawyer or accountant, it does mean that the specialist you find is likely to know the crypto market well. They’ll prove to be a great asset as your business explores the world of crypto.
Start Using Crypto Profits for Shipping Today
So you’ve decided to start accepting crypto. Now, what do you do with those funds?
You’ll discover that your newfound crypto knowledge opens up new avenues for financial management. For example, Bitcoin Postage makes it super easy to pay for shipping with crypto. Enjoy the privacy and security of paying with Bitcoin, Litecoin, or Monero. No account necessary!