How Customers of Your Business Can Pay You with Crypto

It's always important to understand your customers' perspective particularly at crucial point of conversion like the checkout. The most important aspect of having an efficient checkout experience is offering an efficient, safe process for customers to pay out using the payment method of their choosing.

In this article this article, we'll assist you in understanding how a transaction is handled from your customers' point of view. Armed with this information, you'll be well equipped to spot opportunities to increase the conversion rate of your customers, provide assistance directly, and inform the customers and potential customers.

Crypto vocab check

You can dig into each of these terms a bit further in this article. However, here's an overview of the key terms:

Public key: Essentially it is the data that someone requires for sending your cryptocurrency.

Public address: A hashed (basically, shorter) version of a public key. This is what you can give to someone looking to transfer money. Consider it as an Venmo username or PayPal.me URL. (e.g., 0x12B0aD31f483Cdf4741de8f5679A472E5fe3345G)

A private key allows user to gain access to funds that have been transferred via the public key. It should not be divulged to another person.

Web3: Defined by AP Stylebook, Web3 is a catchall term for the prospect of a new stage of the internet driven by the cryptocurrency-related technology, blockchain.

Web3 wallet (crypto wallet): Stores public and private keys used for transactions in blockchain.

Seed phrases: A collection composed of 12-24 random-generated words which allow access to a Wweb3 wallet. This is used to recover access to a cryptocurrency wallet. This should never be shared with a third party.

A non-custodial account: The user owns their own private keys, and they have full access to their Wweb3 wallet. (e.g., Metamask, Trust Wallet. )

Custodial wallet private keys are held by third-party companies. (e.g., Coinbase, OpenNode. )

Peer-to-peer payments

You might be thinking "Isn't one of the main advantages of cryptocurrencies the fact that they're peer to peer and don't depend on third parties?"

It is possible to get money from your customer without the use of any third-party service or tool.

But, it's not practical for the common person. It's not feasible for them to create their own server, run transactions via a command line, and memorize their private keys. Also, many sellers are content to accept a modest fee for transactions to provide customers with a smooth service, and also save themselves lots of time and energy in reconciling transactions to their orders.

Therefore, this post focuses on the typical transactions made by e-commerce using the tools and services likely to be used by intermediate and beginner users.

An overview of how to make a cryptocurrency payment

From the perspective of a consumer, there are three steps:

1. You can access a fundable cryptocurrency wallet.
2. Connect their wallets.
3. Complete the payment and receive confirmation.

The specific experience depends on the payment processor and wallets used. Let's run through some examples and talk about what's happening every step of the way for your customer.

1. You can access a fundable cryptocurrency wallet

There are a variety of choices to those who are looking for a crypto wallet. Every option has its own features, benefits and supports for various currencies, chains, and the payment experience.

"Traditional" digital wallet providers like PayPal along with CashApp now support payment via crypto. Leading crypto exchanges in the industry like Coinbase, Crypto.com, and Binance offer their own apps that also function as wallets for payments. Additionally, there are wallets that are native to crypto like MetaMask, Rainbow, and many other options. It is recommended to conduct the necessary research in order to find the most suitable option to suit your needs.

After choosing a wallet and setting it in place, your next step is to include a crypto to it, so you'll have a surplus cash balance that you can use to purchase. This is usually a quick process because most wallets offer the option of purchasing in-app.

So how does a customer determine which cryptocurrency they should add?

It's a great topic! In most cases, it doesn't need to be a factor, with the exception of costs that may be incurred if they have to exchange currencies. Certain payment processors for crypto will offer automatic exchange services to allow customers to pay you in one currency while you get it back in another.

In the event that that's not an option, most crypto wallets offer an in-wallet swap or exchange feature so that when a user has bitcoin (BTC) however wants to pay using Ethereum (ETH), they can do so effortlessly. It is ideal to load your wallet with whatever payment method you'd like to make with, but it's not always possible in advance of making a purchase.

2. Connect their wallet with your website

There are two primary options for customers to connect their wallet to your site: the QR code, or the browser's wallet connect. Crypto payment processors may offer one or both of these choices.

QR code

This is the best option for customers who have their crypto wallet installed as an application on their smartphone. When someone chooses to pay via crypto, they're presented with a QR code that they can scan with a application within their wallet application for crypto.

Connect your wallet to the browser

This method is ideal for users who have access to their cryptocurrency wallet through a web browser extension. When someone chooses this route, they're prompted to connect their Web3 wallet by clicking the button. This invokes the wallet in the browser and then asks for the authorization needed to join.

3. Make the payment, and then receive confirmation.

Whatever method the user chooses to use it will provide prompts that guide them to pay a bill - either in either the app or on the web browser.

After payment has been made, there can be a time delay (usually only seconds) before payment is confirmed by the blockchain. Once this is done, you and your customer will both receive a confirmation. When transactions are conducted directly on-chain, you may be both issued an ID for a transaction on blockchain.

That's all there is!

What do crypto payments methods have to do with retailers?

There's a huge gap between a client who's already experienced with crypto and prepared to make a purchase and someone who's never used crypto before. Getting set up with the right crypto wallet, financing it, and knowing the process to complete a transaction are all barriers to entry.

In the beginning, digital payments will come from more experienced crypto users. In time, the number is expected to grow significantly. If your fans or customers have expressed that they're interested in crypto then it might be beneficial to refer them to reliable sites so they'll be able to understand how to make payments to you the manner they want.

Advantages of cryptocurrency payment options to your customers

1. They have crypto, and they are eager to spend the money! Maybe they're the first investor to invest, or they're an excellent trader, or get the money in cryptocurrency.
2. It's cheaper for them to use crypto for direct transactions rather than pay exchange and/or foreign exchange fees when making traditional transactions. This can be especially the case in the case of international clients.
3. They may not be able to access alternative payment options.
4. It is possible that they would prefer to keep specific transactions secret or distinct from other financial transactions.
5. It's easier and safe.
6. They value being able to transact without paying fees to traditional financial service providers (i.e., they're ideologically-driven).
7. There aren't any limits on the amount of daily payments which is particularly true of expensive, luxurious products that may exceed the user's daily banking limits.
8. It's a cost for an digitally-native asset like an NFT.

Customer considerations to bear in the mind of

It is evident that there's plenty of options when it comes to cryptocurrency payments based on a user experience. Here are some points to keep in mind when choosing and operating crypto payments:

1. How easy is it for customers to pay? What are the best payment methods? what cryptocurrencies?
2. Do your customers get exposure to the fees of crypto networks in the direct manner? This can make it more expensive for them to be able to pay for a service if it is active.
3. Are you aware of how to resolve disputes? This is particularly important in the absence of the traditional credit and refund policies. Unhappy or angry customers are more likely to make complaints and leave poor reviews.
4. How long do customers need to wait on confirmation of orders? If you're not allowing your customers to pay for their purchases, they may need to wait longer than usual. This is why the use of a payment partner could aid, since they typically keep fees as well as confirmation times very low.
5. Are shoppers in need of an education? The customers may be interested in learning what they can do to pay for their purchases using cryptocurrency, as well as advice regarding security and how to avoid scams.

Let your clients know that you are here to assist them in embracing the new world of payment

Merchants have the option of choosing crypto payment processing methods that are straightforward and easy to use. On contrary, have a different payment experience.

There are millions of crypto users that are currently prepared, eager and capable of paying with cryptocurrency. While crypto payment options are getting easier and more straightforward, it's still important for merchants to understand their clients' experience and the implications of their decisions in order to make the most out of this growth opportunity.