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

It's essential to be aware of your customers' perspective, especially at key point of conversion like the checkout. The most important aspect of having an effective checkout process is to provide a safe, easy way for your customers to pay out using the option of payment they prefer.

In this post will help you comprehend a payment transaction from the point of view of your clients' from a customer's perspective. With this knowledge will allow you to spot opportunities to increase the rate at which you convert customers, give assistance directly, and inform your customers and prospects.

Crypto vocab check

There is a way to study each of these terms a little more by clicking here. But here's a summary of the most important terms:

Public Key: Essentially it is the data that someone requires to transfer the cryptocurrency.

Public address The hashed (basically smaller) version of an open key. This is what you might offer to anyone who wishes to send you money. Imagine it as an Venmo username, or PayPal.me hyperlink. (e.g., 0x12B0aD31f483Cdf4741de8f5679A472E5fe3345G)

Private key: Allows user to gain access to funds that have been transferred via the public key. The private key 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-based wallet (crypto wallet): Stores public and private keys to facilitate blockchain transactions.

Seed phrases: A list composed of 12-24 random-generated words which grant access to a Wweb3 wallet. It can be used to recover access to a wallet for cryptocurrency. The information should not be shared with anyone else.

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

Custodial wallet Keys to private accounts are owned by third-party firms. (e.g., Coinbase, OpenNode. )

Peer-to-peer payments

It's possible that you're thinking "Isn't a major point of cryptocurrencies the fact that they're peer to peer and don't depend on third-party services?"

Absolutely, it is possible for you to receive the money of a client without the use of any tool or service from a third party.

However, this simply isn't realistic for the average person. They're not going to run an individual node, create transactions using a command line, or even remember the private keys to their account. In addition, the majority of merchants are happy to pay a small transaction cost to give customers a low-friction experience, while saving themselves lots of time and energy reconciling payments to orders.

This article is focusing on the typical transactions made by e-commerce using the tools and services likely to be utilized by novice and intermediate users.

An overview of how to make a cryptocurrency 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 wallets.
3. Pay the amount and you will receive a confirmation.

The exact experience will depend on the processing company and wallets used. Let's run through some examples and talk about what's happening in each stage for your customer.

1. You can access a fundable digital wallet

There are a variety of choices for folks who want an online wallet that supports crypto. Each option comes with specific features, advantages and supports for various cryptocurrencies, chains, and the payment experience.

'Traditional' digital wallet providers such as PayPal and CashApp now support cryptocurrency payments. Leading crypto exchanges in the industry like Coinbase, Crypto.com, and Binance have their own applications, which also serve as payment wallets. Additionally, there are wallets that are native to crypto such as MetaMask, Rainbow, and numerous other options. Do the necessary research in order to find the best option or options to suit your needs.

After choosing a wallet and getting it set to go live, the following thing to do is to incorporate coins to the wallet so that there is a balance to spend. This is usually a quick process because most wallets offer in-app purchase options.

How does a buyer decide which currency to use?

This is a good question! Most of the time, it doesn't matter, aside from fees that can add up when they need to change currency. A few crypto payment processors allow automatic exchange to allow customers to pay you in one currency while you get it back in another.

If that's not feasible some crypto wallets have in-wallet exchange/swap functionality so that when a user has bitcoin (BTC) however wants to pay using ethereum (ETH) it is possible to switch quickly. The ideal scenario is to load your wallet with whatever money you wish to pay in, but that's not always feasible ahead when you decide to make a purchase.

2. Connect their wallet on your site

There are two options for customers to connect their wallets to your website: the QR code, or the browser's wallet connection. Crypto payment processors may offer either or both as options.

QR code

This method is ideal for customers who have the crypto wallet in an app on their phone. If someone decides to pay using cryptocurrency, they'll be presented with a QR code that they can scan with a tool in the app for their crypto wallet.

Browser wallet connect

This is the best option for customers who access their crypto wallet via an online browser extension. When a user chooses this option it prompts them to join to their Web3 wallet by clicking an icon, which opens the browser's wallet, and requests for the authorization needed for connection.

3. Complete the payment and get a receipt.

Whatever method the user chooses to use it will offer prompts that will guide the user to pay a bill - either in the application or in the browser.

Once payment is made the payment may be delayed. There is an indefinite delay (usually just a few seconds) until the payment is verified by the blockchain. At this point, you and the recipient will receive confirmation. When transactions are conducted directly on-chain, you may each receive an ID for a transaction on blockchain.

Then, that's it!

What exactly do these procedures mean for merchants?

There's a big gap between a client who's comfortable with crypto and prepared to make a purchase or transaction, and someone who's not used the cryptocurrency prior to. The process of setting up the right crypto wallet, financing it and understanding the process to complete a transaction are all barriers for access.

In the beginning, digital payments will originate from experienced customers of crypto. As time passes, this amount is predicted to rise substantially. Therefore, if you're followers or customers have expressed that they are interested in cryptocurrency It could be beneficial to direct them to reputable sites so they'll be able to understand the best way to pay you the way they prefer.

The advantages of using crypto payments for your clients

1. They have crypto, and they are eager to spend it! It could be that they're an early investor, an expert trader or get their money in crypto.
2. It's cheaper for them to make direct payments to crypto rather than pay exchange and/or forex fees for traditional payments. This can be particularly true in the case of international clients.
3. They may not be able to use different payment options.
4. Some prefer keeping certain transactions confidential or keep them separate from other financial transactions.
5. They feel it's more convenient 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 which is particularly true of extravagant, expensive things that could exceed a limit on a daily basis for a user's bank account.
8. The buyer is paying for a digitally native asset, such as an NFT.

Customers' needs to be kept in mind

It is evident that there's plenty of choices when it comes to cryptocurrency payments based on a user perspective. These are the things that are worth bearing in mind while choosing and operating crypto payments:

1. How easy is it for customers to pay? And with what currencies?
2. Do you have customers who are exposed to the fees of crypto networks directly? It could be more expensive for them to be able to pay for a service if it is busy.
3. Are you aware of how to resolve disputes? This is especially important when there's the absence of conventional refund and chargeback options. Customers who are unhappy or dissatisfied are more likely to make complaints and post poor reviews.
4. How long will customers need to wait to receive their order confirmation? Depending on how you're allowing your customers to pay for their purchases for their purchases, they could have to wait longer than usual. Again, this is where the help of a third party can help, as they can typically keep fees as well as confirmation times very low.
5. Are shoppers in need of education? Customers may appreciate education about how they can pay with crypto, along with guidance regarding security and how to avoid fraudulent transactions.

Your customers can trust you to help them embrace the new world of payment

Merchants can choose crypto payment processing methods that are straightforward and familiar. The customers, on the other hand, will be experiencing a distinct payment experience.

The world is full of millions of users who are already ready, willing, and able to pay with the crypto. While crypto payment options are getting easier and more straightforward but it's important that merchants understand their customers' experiences and the consequences of their actions to get the most out of this potential for growth.