How Customers of Your Business Can Pay You with Crypto
It's essential to consider the viewpoint of your customers particularly at the point of change like checkout. A critical part of successful checkout experiences is providing a fast, safe method for customers to check out with the preferred payment method.
In this piece we'll assist you in understanding the process of making a payment from your customers' point of view. When you're aware of this, you'll be able to recognize ways to improve the rate at which you convert your clients, offer assistance in a direct manner, and educate your clients and customers.
Crypto vocab check
There is a way to understand each of these terms a little more in this piece. Here's a brief overview of the main phrases:
Public Key: Essentially it is the data that someone requires for sending you cryptocurrency.
Public address The public address is a hashed (basically short) version of the public key. This is the type of key you can provide to any person who wants to pay you money. Imagine it as an Venmo username, or a PayPal.me URL. (e.g., 0x12B0aD31f483Cdf4741de8f5679A472E5fe3345G)
Private keys: allow a user to access funds sent through with an open-key. Private keys should not be made available to any third party.
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-based digital wallet (crypto wallet): It holds public and private keys for transactions using blockchain.
Seed word: A collection of randomly generated words which allow access to a Wweb3 wallet. It is used to gain access back to the cryptocurrency wallet. It's not recommended to disclose this information to an outside party.
The non-custodial wallet is owned by the user. the private keys to their wallet , and they have full access to their Wweb3 account. (e.g., Metamask, Trust Wallet. )
Custodial Keys for private accounts are held by companies that are third party. (e.g., Coinbase, OpenNode. )
Peer-to-peer payments
Perhaps you're thinking "Isn't one of the primary advantages of cryptocurrency is that they're peer to-peer and don't rely on services provided by third parties?"
Absolutely, it is possible to get money from your customer without the need of any tools or services from a third party.
This is not feasible for the typical user. They're not going to run an individual node, create transactions with the command line, or keep the private keys of their account. Also, most sellers are content to take a minimal transaction charge in order to give customers an enjoyable experience, and they save energy and time in reconciling transactions to orders.
Therefore, this post focuses on common online transactions using products and services which will likely be utilized by beginners and intermediate-level users.
A quick overview of the process of the process of making a crypto-based payment
From the viewpoint as a consumer are three phases to consider:
- It is possible to access a fundable cryptocurrency wallet.
- Connect their bank accounts.
- Pay the amount and get confirmation.
The exact experience will depend on the processor that processes payments and wallets in the transaction. We'll go through some cases and then discuss the process throughout each phase to your client.
1. You can access a fundable cryptocurrency wallet
There are a variety of choices to those who are looking for an online wallet that can support cryptocurrency. Each wallet comes with distinct attributes, features, and advantages as well as assistance for various currencies, chains, and the payment experience.
"Traditional" digital wallets such as PayPal and CashApp now support cryptocurrency payments. The top crypto exchanges, such as Coinbase, Crypto.com, and Binance have their own applications which also act as wallets for payments. Also, there are wallets that are native to crypto such as MetaMask, Rainbow, and numerous other choices. You should investigate your options on your own to find the best option for you.
After you've selected the right wallet and got it setup, the next thing to complete is adding the cryptocurrency you want to use in order to have an account with a balance of cash that can be used to purchase. This can be a fast process since many wallets offer in-app purchase options.
What's the best method for a person to choose which currency to use?
This is a great topic! In most cases you don't need to worry about it, aside from charges that could add up should you need to exchange currencies. A few cryptocurrency payment processors provide automatic exchange services to allow customers to make payments with one currency and get it back in another.
If it's not possible the majority of crypto wallets provide the ability to exchange or swap their wallets in real time, so when a user has bitcoin (BTC) but wants to make a payment using Ethereum (ETH) the users have the ability to change their payment method rapidly. It is ideal to load your wallet with any amount you'd like to transfer, but that's impossible before deciding when you'll buy something.
2. Connect their wallets to your site
Two ways a customer can connect their wallets with your site The QR code and the web wallet connectivity. The payment processors that support cryptocurrency may offer one or both of these as choices.
QR code
It is the most suitable option for customers who have their crypto wallet as an application on their smartphone. If someone chooses to pay using crypto, they're provided with the QR code which can be scannable with an application inside the wallet app for crypto.
Make sure to connect your wallet with the browser
This option is perfect for users who have access to their crypto wallet by way of the online extension of their browser. If someone opts for this method, it prompts them to join the Web3 wallet using a click icon. This allows the browser to open its wallet asking permission to connect.
3. Make the payment, and then get a receipt.
Whatever method the customer chooses, it will provide prompts that assist them with making an online payment either via using the app or via using the browser.
Once payment is made, it may take a few minutes (usually only seconds) until payment confirmation through the blockchain. When this happens your customer as well as you are both notified of the transaction's confirmation. If transactions take place via blockchain, you might receive an ID for transactions on blockchain.
That's all there is!
What does this have to do with merchants?
There's a significant difference between a customer who's experienced with cryptocurrency and prepared to make a purchase or purchase cryptocurrency prior to. Setting up the right cryptocurrency wallet, funding it and understanding how to process the transaction are all hurdles to entering.
At first, most transactions made using digital currencies will be from experienced crypto users. In time, the quantity will grow drastically. If you have clients or fans who have stated that they're interested in crypto, it might be worthwhile to point them to reputable websites, so they'll be able to be able to transfer money to you in the method they'd like to.
The advantages of using crypto-based payment methods for your clients
- Cryptocurrency holders want to spend the money! It could be that they're an early investor or an expert trader, or they get the money in crypto.
- It's cheaper for customers to pay directly payments using crypto, instead of paying exchange and/or forex fees for traditional payments. This is especially the case for customers from countries outside the US.
- There is a chance that they are not able to have access to other payment methods.
- It is possible that they'd like to keep some transactions secret or separate from other activities in their financial accounts.
- It's easier and safer.
- They value being able to transact without paying fees to traditional financial service providers (i.e., they're ideologically-driven).
- There aren't any limits in the each day's payments. This especially is the case for expensive and luxurious products that might over the limit on a per-day basis to a person's bank account.
- It's a cost for an digitally-native asset like an NFT.
Customer considerations to bear in the mind of
As you can see, there's a wide range of possibilities for cryptocurrency payments that are based on the experience of customers. A few things to keep in mind while choosing and operating crypto methods of payment:
- What's the simplest way for your clients to pay? What are the top payment methods? The most popular currencies?
- Are your clients exposed to the fees of crypto networks directly? This could make it difficult for them spend in the event that the network's crypto is very busy.
- Are you aware of the process of dispute resolution? This is crucial where there's no mention of the traditional credit and refund policies. Customers who are unhappy or upset tend to file complaints and leave poor reviews.
- What is the time that customers be waiting for the confirmation of their order? Based on the system you're using to allow clients to pay for their purchases, they might have to wait longer than they normally do. This is why using a payments partner can assist in the sense that they'll often ensure that the charges and confirmation timings very minimal.
- Do customers require an educational program? The customers may be interested in learning about payment options using cryptocurrency. They also need instructions on security and ways to prevent fraudulent transactions.
Your clients can trust you to help them embrace the world of payments in a new way.
Merchants have the option of choosing crypto payment processing options that are simple and familiar. Customers, on contrary, be experiencing a distinct payment experience.
The globe is filled with thousands of people who are already ready, willing, and able to pay using cryptocurrency. Although crypto-based payment methods have become more simple and easy however, it is still essential to ensure that businesses are aware of their customers' needs as well as the consequences of their choices so they are able to benefit from the potential growth that this technology offers.
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