How Your Customers Can pay you using Crypto

It's always important to understand the perspective of your clients, especially at key moments of transformation like checkout. A critical part of an efficient checkout experience is offering a safe, easy process for customers to pay out with the option of payment they prefer.

In this piece this article, we'll assist you in understanding the process of making a payment from the perspective of your customer's point of view. By understanding this will allow you to recognize opportunities for increasing the rate at which you convert customers, give direct support, and educate the customers and potential customers.

Crypto vocab check

There is a way to study the various terms little more in this article. But here's a summary of the key terms:

Public key: Essentially what you need is information for sending you cryptocurrency.

Public address Public address: A hashed (basically short) version of an open key. This is what you might offer to anyone who wishes to pay you cash. Think of it as an Venmo username or PayPal.me link. (e.g., 0x12B0aD31f483Cdf4741de8f5679A472E5fe3345G)

A private key allows the user to access funds sent through an open key. The private key should never be shared with another 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 wallet (crypto wallet): It stores private and public keys for blockchain transactions.

Seed phrases: A collection composed of 12-24 random-generated words which give access to Wweb3 wallet. It can be utilized to regain access to a cryptocurrency wallet. This should never be shared with another party.

Non-custodial wallet: Users own 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 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 rely on third parties?"

It is feasible to collect the money of a client without the use of any tool or service from a third party.

However, this simply isn't practical for the common consumer. It's not feasible for them to create their own server, run transactions from a terminal command line, and then store the private keys to their account. In addition, the majority of retailers are willing to shell out a tiny transaction cost to give customers a low-friction experience, while saving themselves a lot of time and effort reconciling payment to orders.

So, this article focuses on typical ecommerce transactions using the tools and services likely to be used by intermediate and beginner users.

A brief overview of the process of making a crypto payment

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

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

The experience you get will be based on the processor that processes payments and wallets used. Let's go through some examples and explain what's taking place in each stage for your customer.

1. Access a fully funded cryptocurrency wallet

There are many options to those who are looking for a crypto wallet. Each option comes with specific features, advantages as well as support for various types of cryptocurrencies, chains, as well as payment experiences.

Traditional digital wallets such as PayPal and CashApp are now able to accept crypto payments. Leading crypto exchanges in the industry like Coinbase, Crypto.com, and Binance provide their own apps and also act as payment wallets. Additionally, there are wallets that are native to crypto like MetaMask, Rainbow, and many others. Do the necessary research in order to find the best option or options for you.

Once you've chosen your wallet and getting it set up, the next stage is to include a cryptocurrency to it so that you'll have a surplus amount to spend. This is usually a quick process since many wallets allow the option of purchasing in-app.

How does a buyer determine which cryptocurrency they should add?

This is a good topic! In most cases, it doesn't matter, aside from costs that may be incurred if they have to exchange currency. Some crypto payment processors will allow automatic exchange so that customers can pay you with one currency, and then will receive the money in a different.

In the event that that's not an option the majority of crypto wallets provide in-wallet exchange/swap functionality so that if a customer holds bitcoin (BTC) but wants to pay in the cryptocurrency ethereum (ETH), they can make that swap quickly. It is ideal to load your wallet with the money you wish to pay in, but that's impossible in advance of deciding to make an purchase.

2. Make sure that their wallet is connected to your site

There are two options for customers to connect their wallets to your site: QR code or browser wallet connect. The payment processor for cryptos might offer either or both as choices.

QR code

This method is ideal for customers who have their crypto wallet installed as an app for their mobile. When a person decides to make a payment via cryptocurrency, they're shown the QR code which they can scan with a tool in the app for their crypto wallet.

The browser wallet is connected to your account

This is the best option for customers who access their cryptocurrency wallet through an online browser extension. If someone opts for this method it prompts them to join to their Web3 wallet via the button. This invokes the wallet in the browser and then asks for the authorization needed for connection.

3. Complete the payment and get a receipt.

Whichever route the customer follows The wallet will give them prompts to guide them to pay a bill - via the app or the browser.

Once payment is made it can take an indefinite delay (usually just a few seconds) until payment confirmation through the blockchain. At this point, the customer and you will receive confirmation. Where transactions are made directly on-chain, you may be both issued the blockchain transaction ID.

That's all there is!

What does crypto payment procedures have to do with merchants?

There's a significant distinction between someone who's familiar with crypto and is ready to complete a transaction as opposed to someone who has never heard of the cryptocurrency prior to. Getting set up with a crypto wallet, funding it, and understanding how to process transactions are the main barriers for the entry point.

Initial cryptocurrency transactions are expected to come from more experienced customers of crypto. Over time, this number will likely to increase significantly. If your fans or customers have expressed that they're interested in crypto, it may be worthwhile to refer them to reliable websites so that they will be able to learn how to pay you in the method they like.

The advantages of using crypto payments for your clients

1. The holders of crypto are eager to spend the money! It could be that they've been an early investor, they're an expert trader or they get the money in cryptocurrency.
2. It's cheaper for them to make direct payments to crypto than to accept exchange and/or charges for forex transactions in traditional payment methods. This can be particularly true when dealing with international clients.
3. It is possible that they do not be able to access other payment methods.
4. They may prefer to keep certain transactions confidential or keep them separate from other activities in their financial accounts.
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 daily payment amounts - this particularly applies to high-cost, luxury products that may exceed the 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 a wide range of choices for cryptocurrency payments based on a user experience. Here are some things that are worth bearing in mind when choosing as well as operating cryptocurrency payments:

1. How easy is it for your clients to pay? And with which cryptocurrency?
2. Do your customers get exposure to fees from crypto networks directly? This could make it harder for them be able to pay for a service if it is extremely full.
3. Are you confident about the process of dispute resolution? This is particularly important in the absence of traditional credit and refund policies. Frustrated or unhappy customers tend to be more likely to complain and write poor reviews.
4. How long do customers need to wait on the confirmation of their order? Based on the method you're using to allow clients to pay, they may need to wait longer than usual. Again, this is where the help of a third party can aid, since they often keep both fees and confirmation time very short.
5. Do consumers require education? Customers may appreciate education about what they can do to pay for their purchases using cryptocurrency, as well as advice on security and avoiding frauds.

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 methods that are easy and familiar. Customers, on contrary, encounter a completely different experience when paying.

There are millions of crypto users who are already ready, willing, and able to make payments using cryptocurrency. Although crypto-based payment methods have become more simple and easier however, it is still essential that merchants understand their clients' experience and the implications of their decisions to get the most of this potential for growth.