As a Shopify merchant, you may seek ways to streamline your payment processing to reach more customers. Have you considered accepting cryptocurrency payments on your store? Besides the practical benefits of faster transaction times and lower fees, accepting cryptocurrency can also align with your values around financial empowerment. In this beginner’s guide, we’ll explore the ethics of accepting Shopify crypto payments and show you how to get started.
The Ethics of Cryptocurrency
At its core, cryptocurrency is about financial inclusion and empowerment. Through blockchain technology and its decentralized ledger, cryptocurrency removes the need for intermediaries like banks and payment processors. As such, individuals take control of their financial transactions and enjoy greater freedom and autonomy. Also, cryptocurrencies are inflation-resistant, making them a more stable and secure form of currency in the long term.
Accepting Bitcoin or Ethereum cryptocurrency payments on your Shopify store will align your business with these decentralization and financial empowerment values. You will offer your customers a more secure and stable form of payment that doesn’t require them to rely on traditional financial institutions.
So, here is how to accept crypto payments on your Shopify website!
How to Accept Crypto Payments on Shopify
Are you ready to start accepting crypto payments on Shopify? Here is our detailed step-by-step guide to setting up your systems:
Step 1: Choose a Payment Gateway
There are several payment gateways available on the Shopify admin dashboard that support cryptocurrency payments. You can choose from Coinbase Commerce, OpenNode, BitPay, DePay, CoinPayments, and Crypto.com, among others. Each crypto payment gateway has different fees, integration options, and supported cryptocurrencies, so research and choose one that best suits your needs.
Step 2: Install the Payment Gateway App
Once you’ve chosen your payment gateway, install its app on your Shopify store. You can find the app in the Shopify App Store or by searching for it in the payment settings.
Step 3: Create a Cryptocurrency Wallet
You’ll need a cryptocurrency wallet to receive payments. You can create a wallet through a third-party provider or use the one your chosen payment gateway provides.
Step 4: Configure the Payment Method
Follow the app’s instructions to configure the gateway. You’ll need to enter your digital currency wallet address, select the supported cryptocurrencies, and set the fees.
Step 5: Test the Payment Gateway
Before launching the payment gateway, test it to ensure it works correctly. Make a test purchase and verify that you receive the payment in your cryptocurrency wallet.
Tips for Ensuring Secure and Reliable Crypto Payment Processing
Cryptocurrency payment processing is a relatively new field, so ensuring security and reliability can be challenging. Here are some tips for Shopify vendors to consider when accepting cryptocurrency payments to provide secure and reliable payment processing:
I. Choose a Reputable Payment Gateway
Choose reputable payment providers with a proven track record of reliable and secure payment processing. So, research your provider’s security protocols and check for any previous security breaches or issues.
II. Implement Multi-Factor Authentication
Multi-factor authentication adds a new layer of security to your payment processing by requiring users to provide multiple forms of verification before completing a transaction. These can include a combination of a password, biometric authentication, and a one-time code sent via SMS or email.
III. Keep Your Software Up To Date
Ensure that your payment gateway software is updated regularly with the latest security patches and software updates. Doing so will prevent any known vulnerabilities or security threats.
IV. Use Cold Storage for Large Transactions
When you make large cryptocurrency transactions, consider using cold storage to store your funds offline in a secure location. This will protect your funds from hacks and cyber attacks that target online wallets.
V. Monitor Your Transactions Closely
Regularly monitor your payment processing transactions for any suspicious activity or unauthorized transactions. For example, implementing real-time alerts will help you quickly identify any potential security issues and take appropriate action.
VI. Understand Regulatory Requirements
Ensure you understand your region’s regulatory requirements related to cryptocurrency payment processing. Doing so will help you comply with applicable laws and regulations and avoid legal issues.
What Are The Benefits Of Accepting Crypto Payments?
You stand to reap some huge benefits when you accept crypto payments on Shopify. These include:
1. Increased Sales
Cryptocurrencies continue developing daily; with that progress, many people have started investing worldwide. When you accept Bitcoin, Ethereum,or Dogecoin as a payment method, you will attract the attention of these crypto owners who want to use crypto as payment rather than fiat currencies or banks. As a result, you can increase sales and revenue for your business.
With cryptocurrency payments, your store can accept payments from customers globally without worrying about currency conversions or international transaction fees.
2. Faster Transactions
Cryptocurrency transactions are processed much faster compared to traditional payment methods. Transactions are typically completed within minutes or seconds, which is especially beneficial for Shopify merchants with high-value transactions.
3. Lower Processing Fees
It does not matter how big your business gets, you will always look for ways to lower your spending, and transaction fees are an excellent place to start. Luckily, cryptocurrency payment transaction fees are much lower than traditional payment methods. This is a good perk for your business, primarily when you process a high volume of transactions.
4. Increased Security
As you know, cryptocurrency is a digital or virtual currency. Cryptocurrency uses encryption techniques to regulate the generation of currency units and to verify the transfer of funds. Its design guarantees better safety because it relies on using cryptography, which secures communication from third parties.
When you accept Shopify crypto payments, you benefit from this increased security, where transactions are virtually hack-proof and cannot be manipulated or altered. The payment method eliminates the risk of fraudulent activities such as chargebacks, which can be a significant issue for businesses that accept traditional payment methods.
In addition, cryptocurrency’s decentralized nature guarantees no central authority or institution controlling transactions. This eliminates the risk of censorship or government interference, providing businesses and customers with greater independence and control.
5. Reduced Fraud and Chargebacks
Another significant benefit of accepting crypto payments is the reduced risk of fraud and chargebacks. Cryptocurrency transactions are not reversible, meaning that once the transaction gets processed, it cannot be reversed or canceled. As such, you mitigate fraudulent chargebacks, where a customer disputes a charge after receiving the product or service but keeps the money.
6. Innovative and Forward-Thinking
When you accept Bitcoin and other cryptocurrencies, you position your business as innovative and forward-thinking. Cryptocurrency is a cutting-edge technology, and adopting it as a payment method demonstrates that your business is at the forefront of technology and trends.
Customers who value businesses that embrace innovation will be more likely to choose your business over competitors who do not accept cryptocurrency. Additionally, you may attract a younger, tech-savvy audience who are early adopters of new technology.
Common Concerns and Risks with Accepting Shopify Cryptocurrency Payments
Accepting cryptocurrency on Shopify can offer several benefits, such as lower transaction fees, faster payments, and independence. However, consider some of the common risks associated with doing so. These include:
Cryptocurrencies are highly volatile, meaning their value can fluctuate rapidly without forewarning. As you accept crypto payments, have the plan to manage your currency risk. For instance, consider converting the cryptocurrency to a stablecoin or fiat currency immediately after receiving payment.
2. Wallet Security
If you store your cryptocurrencies in digital wallets, understand they are susceptible to hacking and cyber-attacks. So, ensure your payment gateway provider has robust security protocols to protect your funds from unauthorized access and theft. For the best safety, have a way of transferring your payments into cold storage to mitigate all threats.
3. Regulatory Uncertainty
Cryptocurrencies are still largely unregulated in many jurisdictions, and regulatory requirements can change quickly. It will be best to stay up-to-date with any regulatory changes that could impact your business and ensure you comply with all laws and regulations.
4. Lack of Widespread Adoption
While cryptocurrencies continue to grow in popularity, they are still not widely accepted as a payment method by consumers. As such, you may want to educate your customers about the benefits of using crypto to encourage adoption.
So, there you have it: the best beginner’s guide to accepting crypto payments on Shopify! If you’re not sure where to start, this guide shows you how to approach the idea. We tell you how to set up a secure payment method for your business, plus the many benefits you stand to reap. But, ensure you take the best security measures to protect your business, funds, and customers from potential threats.
Ultimately, accepting crypto payments on Shopify is a forward-thinking decision that can benefit your business and the broader movement toward a more decentralized and empowering financial system.