How Customers of Your Business Can pay you using Crypto

It is essential to know the perspective of your clients, especially at key point of conversion like the checkout. A critical part of an effective checkout experience is offering an easy, secure way for your customers to pay out with the payment method of their choosing.

In this piece will help you comprehend a payment transaction from the point of view of your clients' from a customer's perspective. Armed with this information will allow you to identify opportunities to boost the conversion rate of your customers, provide assistance directly, and inform the customers and potential customers.

Crypto vocab check

You can dig into the terms in these categories a little more here. Here's a brief overview of the terms that are most relevant:

Public Key: Essentially it is the data that someone requires for sending the cryptocurrency.

Public address Public address: A hashed (basically, shorter) version of a public key. It is the kind of address you could give to someone looking to pay you cash. Imagine it as an Venmo username or PayPal.me URL. (e.g., 0x12B0aD31f483Cdf4741de8f5679A472E5fe3345G)

A private key allows a user to access funds sent via an open key. This should never be disclosed to a 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 wallet (crypto wallet): Stores public and private keys for blockchain transactions.

Seed phrase: A collection of 12-24 randomly-generated words that allow access to a Wweb3 wallet. This is used to recover access to a cryptocurrency wallet. The information should not be shared with another party.

Non-custodial wallet: Users own the private keys to their wallet and have all access to their Wweb3 wallet. (e.g., Metamask, Trust Wallet. )

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

Peer-to-peer payments

Perhaps you're thinking "Isn't an important benefit of cryptocurrency the fact they're peer to peer and don't depend on third-party services?"

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

This is simply not feasible for the typical consumer. They're not going to run their own server, run transactions via a command line, and memorize the private keys to their account. Likewise, most retailers are willing to pay a small transaction cost to provide customers with a smooth experiencewhile also saving lots of time and effort reconciling payment with orders.

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

Overview of making a crypto payment

From the viewpoint of a prospective customer, there are three steps:

1. Get access to a funded crypto wallet.
2. Connect their wallet.
3. Complete the payment and get a receipt.

The experience you get will be based on the payment processor and wallets used. Let's look at some examples and discuss what's going on in each stage for the customer.

1. You can access a fundable crypto wallet

There are lots of options to those who are looking for a crypto wallet. Every option has its own features, benefits as well as support for various currencies, chains, and payment experiences.

"Traditional" digital wallet providers like PayPal and CashApp are now able to accept crypto payments. Industry-leading crypto exchanges like Coinbase, Crypto.com, and Binance offer their own apps, which also serve as wallets for payments. Then there are crypto-native wallets such as MetaMask, Rainbow, and many others. It is recommended to conduct yourself a thorough research and determine the most suitable option for your situation.

After choosing a account and setting it up, the next step is to incorporate crypto to it, so you'll have a surplus amount to spend. It is typically a simple process because most wallets offer an in-app payment option.

How does a buyer determine which cryptocurrency they should add?

This is a good topic! In most cases, it doesn't really matter, except for the costs that may be incurred when they need to change currency. A few crypto payment processors allow automatic exchange which allow users to make payments 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 an in-wallet swap or exchange feature so that customers who have bitcoin (BTC) however wants to pay using ethereum (ETH) then they are able to switch effortlessly. The ideal scenario is to load your wallet with the currency you want to pay in, however that's impossible in advance of making a purchase.

2. Connect their wallet on your site

There are two primary ways that a customer can connect their wallets to your website. the QR code, or the browser's wallet connection. The payment processor for cryptos might offer either or both choices.

QR code

This is the best option for people who own their crypto wallet as an app for their mobile. When someone chooses to pay via cryptocurrency, they're shown an QR code could be scanned using an utility in their wallet application for crypto.

Connect your wallet to the browser

This route is best for those who connect to their crypto wallet via an extension for their browser on the web. When a user chooses this option it prompts them to join their Web3 wallet by clicking the button. This invokes the browser wallet and asks for authorization for connection.

3. Complete the payment and receive confirmation.

Whichever method the client chooses 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, there can be a delay (usually just a few seconds) until payment confirmation through the blockchain. After this, both you and your customer will both receive a confirmation. When transactions are conducted via blockchain, you might be both issued a blockchain transaction ID.

And that's it!

What exactly do these methods mean for retailers?

There's a significant difference between a customer who's familiar with crypto and is prepared to make a purchase and someone who's never used cryptocurrency before. The process of setting up a crypto wallet, funding it and understanding how to process a transaction are all barriers to access.

In the beginning, digital payments will originate from experienced crypto users. In time, the number will likely to increase substantially. Therefore, if you're followers and clients have stated that they are interested in cryptocurrency It could be beneficial to refer them to reliable sources so they can learn how to make payments to you the manner they want.

The advantages of using crypto payments to your customers

1. They have crypto, and they want to spend it! Maybe they're an early investor, they're a great trader, or get the money in cryptocurrency.
2. It's more affordable for customers to use crypto for direct transactions than to accept exchange and/or foreign exchange fees when making traditional transactions. This can be especially the case in the case of international clients.
3. There is a chance that they are not able to be able to use different payment options.
4. They may prefer to keep certain transactions private or separate from their other financial activities.
5. The majority of them feel that it's more comfortable 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 are no limits to daily payment amounts which is particularly true of extravagant, expensive products that may exceed the user's daily banking limits.
8. The buyer is paying for a digitally native asset such as an NFT.

Considerations of the customer to keep in mind

As you can see, there are a lot of possibilities in the field of cryptocurrency payments based on a user perspective. Here are some aspects to bear in your mind when selecting and operating crypto payments:

1. What is the easiest way for your clients to pay? What are the best payment methods? what cryptocurrencies?
2. Do your customers get exposure to the fees of crypto networks directly? This could make it harder for them spend if the crypto network is extremely active.
3. Are you confident about the process of dispute resolution? This is particularly important in the absence of conventional credit and refund policies. Customers who are unhappy or dissatisfied are more likely to make complaints and leave poor reviews.
4. What time will the customers have to wait on the confirmation of their order? Depending on how you're allowing your customers to pay for their purchases for their purchases, they could have wait longer than normal. In this case, using a payments partner can aid, since they typically keep fees as well as confirmation time very short.
5. Do consumers require an education? Customers may appreciate education about what they can do to pay for their purchases using crypto. They also need advice in securing themselves and staying clear of frauds.

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

Merchants can choose crypto payment processing options that are simple and familiar. On the other hand, will be experiencing a distinct payment experience.

Millions of users that are currently prepared, eager and capable of paying with crypto. Even though crypto payments are getting easier and more straightforward however, it is still essential for retailers to be aware of their customers' experiences and the consequences of their actions to get the most out of this potential for growth.