How To Accept Cryptocurrency Payments? A large number of businesses all over the world are starting to accept various forms of cryptocurrencies as a form of payment in exchange for services and goods. Tesla, Microsoft and Starbucks are just some of many businesses taking advantage of the rising popularity of cryptocurrency.
The recent stabilization of cryptocurrency values has made the acceptance of digital currency more worthwhile to businesses, thus enabling them to tap into the entirely new and growing demographic of cryptocurrency holders and investors.
For businesses in Australia who have considered accepting cryptocurrency you might be unsure of how to get started and might have dozens of questions about what process is undertaken in order for your business to start accept cryptocurrency and also whether or not it is a smart decision to make for your business.
There are number of important things that must be taken into consideration such as when and how to convert generated cryptocurrency into fiat currency and the tax obligations that business must abide by if they decide to become a business that accepts cryptocurrency.
The Benefits of Accepting Cryptocurrency as A Business
The immutable and decentralized nature of cryptocurrencies means that digital currency has a plenty of advantages over fiat currency for business operators. Accepting cryptocurrencies as a payment method delivers major benefits including;
Eliminating Chargeback Fraud Risks – Chargeback fraud is a major issue in the ecommerce industry, this results in the loss of over $25 billion each year. Recent figures illustrate that chargeback fraud rises by 41 percent every two years. This illustrates a major advantage of digital currency since cryptocurrency transactions are immune to chargeback fraud.
Immediate Availability – Another factor that makes cryptocurrency alluring is that unlike debit or credit card purchases, cryptocurrency payments don’t required arbitrage by a third party. The traditional banking system operated payment gateways often hold funds for a predetermined waiting period. Cryptocurrency payments, in contrast, are available almost instantaneously.
Low Transaction Costs – Complex credit card payment fees can cost businesses between 2 percent and 10 percent for every transaction. Cryptocurrencies such as Ethereum or Bitcoin in comparison much lower transaction fees in a single flat fee, saving retailers and merchants thousands in transaction costs.
New Customers – As more businesses begin to adopt cryptocurrency into their business, so does the number of consumers hoping to exchange cryptocurrency for goods and services. Accepting Bitcoin or other cryptocurrencies as a payment method places a business ahead of the pack, exposing businesses to clientele that were previously unavailable.
Integrate Blockchain Technology – Accepting cryptocurrency as a payment method is the first step toward potentially integrating blockchain technology and the benefits it offers into your business.
How To Accept Cryptocurrency Payments For Australian Businesses
Accepting cryptocurrency payments as a retailer can be undertaken with varying levels of complexity. At the most basic level, all that a business needs in order to accept cryptocurrency in exchange for goods and services is a cryptocurrency wallet for the cryptocurrency of their choice. For major cryptocurrencies such as Bitcoin and Ethereum, wallets are extremely easy to establish.
Some businesses might decide to hold their cryptocurrency on a dedicated hardware wallet, while others choose to use software wallets or hot wallets. Wallet addresses can be presented to customers as a simple QR code that is scanned via smartphone, streamlining the transaction process.
Although it is possible to simply present a wallet address and charge customers a specific amount of cryptocurrency for goods and services, the relatively volatile nature of the cryptocurrency market causes many businesses to prefer to charge customers in fiat currency with the option of paying in crypto at converted rates. This practice can be performed in-house, but there are a number of platforms that offer dedicated cryptocurrency merchant services that streamline the conversion and storage process.