How Customers of Your Business Can be able to pay you with cryptocurrency

It is essential to know the perspective of your clients particularly at crucial moments of transformation like checkout. The most important aspect of having an effective checkout experience is providing a safe, easy method for customers to check out using the payment method of their choosing.

In this post this article, we'll assist you in understanding the process of making a payment from the point of view of your clients' of view. By understanding this will allow you to recognize opportunities for increasing the conversion rate of your customers, provide assistance directly, and inform the customers and potential customers.

Crypto vocab check

It is possible to explore each of these terms a bit further by clicking here. Here's a brief overview of the key terms:

Public key: Essentially what you need is information in order to send your cryptocurrency.

Public address: A hashed (basically, shorter) version of a public key. It is the kind of address you could share with someone who wants to send you money. Imagine it as a Venmo username, or PayPal.me link. (e.g., 0x12B0aD31f483Cdf4741de8f5679A472E5fe3345G)

Private key: Allows user to access funds sent via an open key. This should never 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): It stores private and public keys used for transactions in blockchain.

Seed phrase: A collection composed of 12-24 random-generated words which grant access to a Wweb3 wallet. This can be used to gain access back to a cryptocurrency wallet. This should never be shared with anyone else.

The non-custodial wallet is owned by the user. the private keys to their wallet and have the full control of their Wweb3 wallet. (e.g., Metamask, Trust Wallet. )

Custodial wallet: Private keys are possessed by third-party firms. (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 do not rely on third party services?"

Yes, it's entirely possible to get money from your customer without needing to use any third-party service or tool.

But, it's not realistic for the average consumer. It's not feasible for them to create their own node, generate transactions via a command line, and then store the private keys to their account. Also, many merchants are happy to accept a modest transaction fee in order to give customers a low-friction service, and also save themselves much time and effort reconciling payment to orders.

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

Overview of making a crypto payment

From the perspective of a consumer There are three main steps to follow:

1. Get access to a funded crypto wallet.
2. Connect their bank accounts.
3. Complete the payment and receive a confirmation.

The specific experience depends on the processor that processes payments and wallets involved. Let's look at some scenarios and discuss what's going on at each step for the customer.

1. You can access a fundable cryptocurrency wallet

There are a variety of choices for folks who want a crypto wallet. Each option comes with specific features, advantages and supports for various types of cryptocurrencies, chains, as well as payments.

'Traditional' digital wallet providers like PayPal and CashApp currently support payment via crypto. The top crypto exchanges such as Coinbase, Crypto.com, and Binance offer their own apps that also function as wallets for payments. There are also crypto-native wallets such as MetaMask, Rainbow, and several others. You should do the necessary research in order to find the most suitable option for your situation.

Once you've chosen your account and setting it up, the next stage is to incorporate crypto to it, so you'll have a surplus balance to spend. This can be a fast process because most wallets offer an in-app payment option.

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

It's a great topic! Often, it doesn't actually need to be a factor, with the exception of charges that could add up if they have to exchange currency. Certain payment processors for crypto will offer automatic exchange services to allow customers to make payments in one currency and you get it back in another.

Where that's not possible, most crypto wallets offer the ability to exchange or swap their wallets in real time, so if a customer holds bitcoin (BTC) but wants to pay in the cryptocurrency ethereum (ETH), they can switch easily. It is ideal to load your wallet with whatever payment method you'd like to make in, however that's not always possible in advance of making purchases.

2. Link their wallets with your website

There are two options for customers to link their wallets with your site: either a QR code (or browser) wallet connect. Payment processors that accept crypto may provide either or both as choices.

QR code

This is the best option for customers who have the crypto wallet in an app for their mobile. If someone decides to pay using cryptocurrency, they'll be presented with an QR code they can scan with a tool in their wallet application for crypto.

Browser wallet connect

This is the best option for customers who access the crypto wallet using a web browser extension. If someone opts for this method it prompts them to join their Web3 wallet via an icon, which opens the wallet in the browser and then asks for the authorization needed for connection.

3. Make the payment, and then get a receipt.

Whichever route the customer follows The wallet will offer prompts that will guide the user in making a payment, via the application or in the browser.

When payment is received, there can be an indefinite delay (usually only seconds) until the payment is verified through the blockchain. After this, both the customer and you are both notified of the confirmation. Where transactions are made directly on the blockchain, you could each receive an ID for a transaction on blockchain.

Then, that's it!

What does crypto payment procedures have to do with merchants?

There's a huge gap between a client who is already experienced with crypto and prepared to make a purchase as opposed to someone who has never heard of cryptocurrency before. Getting set up with the right crypto wallet, financing it, and knowing the process to complete transactions are the main barriers in the way of entry.

In the beginning, cryptocurrency transactions are expected to originate from experienced crypto users. Over time, this number will likely to increase substantially. So, if your followers and customers have indicated that they are interested in cryptocurrency then it might be beneficial to point them towards reliable sites so they'll be able to understand how to make payments to you the way they prefer.

Benefits of crypto payment options to your customers

1. The holders of crypto want to spend the money! It could be that they were an early investor, a great trader, or are the money in cryptocurrency.
2. It's cheaper for them to use crypto for direct transactions instead of paying exchange or forex fees for traditional payments. This can be especially the case in the case of international clients.
3. They may not be able to access alternative payment options.
4. They may prefer to keep certain transactions confidential or keep them separate from their other financial activities.
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 is no limit to everyday payment amount - this particularly applies to extravagant, expensive products that may exceed the limit on a daily basis for a user's bank account.
8. It's a cost for an digitally-native asset such as an NFT.

Customer considerations to bear in the mind of

As you can see, there's plenty of options for payment via crypto based on customer perspective. Here are some points to keep in your mind when selecting and operating crypto payment options:

1. How easy is it for customers to pay? And with the most popular cryptocurrencies?
2. Do you have customers who are exposed to crypto network fees in the direct manner? This could make it more expensive for them to pay if a crypto network is full.
3. Are you clear about dispute resolution? This is particularly important in the absence of traditional payment and refund options. Frustrated or unhappy customers tend to be more likely to complain and leave poor reviews.
4. How long do customers need to wait on order confirmation? If you're not allowing customers to pay for their purchases, they could have to wait longer than usual. In this case, using a payments partner can help, as they can frequently keep the fees and the time to confirm transactions very minimal.
5. Are shoppers in need of an education? They may benefit from education on the ways to pay using crypto. They also need advice regarding security and how to avoid frauds.

Confidently help your customers embrace the future of payments

Merchants have the option of choosing crypto payment processing methods that are straightforward and easy to use. The customers, on the other hand, have a different payment experience.

There are millions of crypto users who are ready, willing, and capable of paying with cryptocurrency. While crypto payment options are getting easier and more straightforward however, it is still essential that merchants understand their clients' experience and the consequences of their choices in order to make the most of this potential for growth.