How Your Customers Can pay you using Crypto

It's always important to understand your customers' perspective, especially at key moments of transformation like checkout. The most important aspect of having an effective checkout process is to provide an easy, secure way for your customers to pay out using the payment method of their choosing.

In this piece this article, we'll assist you in understanding how a transaction is handled from your customers' point from a customer's perspective. By understanding this, you'll be well equipped to identify opportunities to boost your conversion rate, offer immediate support and education to the customers and potential customers.

Crypto vocab check

It is possible to explore each of these terms a bit further here. However, here's an overview of the most important terms:

Public Key: Essentially what you need is information in order to send you cryptocurrency.

Public address The hashed (basically, shorter) version of an open key. This is what you can share with someone who wants to transfer money. Consider it as being a Venmo username or PayPal.me URL. (e.g., 0x12B0aD31f483Cdf4741de8f5679A472E5fe3345G)

Private key: Allows the user to have access to the funds transferred via a 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 wallet (crypto wallet): Stores public and private keys for blockchain transactions.

Seed phrases: A collection of random words generated by a computer that allow access to a Wweb3 wallet. It can be used to gain access back to a cryptocurrency wallet. It is not recommended to share this information with anyone else.

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

Custodial wallet private keys are held by third-party organizations. (e.g., Coinbase, OpenNode. )

Peer-to-peer payments

It's possible that you're thinking "Isn't a major point of cryptocurrency the fact they're peer-to peer and do not rely on third party services?"

Yes, it's entirely feasible to collect the money of a client without the use of an external tool or third-party tool.

However, this simply isn't realistic for the average user. It's not feasible for them to create their own node, generate transactions using a command line, and then store their private keys. Also, many sellers are content to shell out a tiny fee for transactions to provide customers with a smooth experiencewhile also saving lots of time and effort reconciling payment with orders.

This article is focusing on typical online transactions that use products and services that are likely to be utilized by beginner and intermediate-level users.

Overview of making a crypto payment

From the perspective of a consumer There are three main steps to follow:

1. Access a fully funded crypto wallet.
2. Connect their bank accounts.
3. Make the payment, and then receive a confirmation.

The experience you get will be based on the payment processor and the wallets that are involved. Let's look at a couple of examples and discuss what's going on at each step for the customer.

1. Access a fully funded crypto wallet

There are a variety of choices to those who are looking for an online wallet that supports crypto. Every option has specific features, advantages and supports for various currencies, chains, and payments.

'Traditional' digital wallet providers like PayPal along with CashApp now support crypto payments. The top crypto exchanges such as Coinbase, Crypto.com, and Binance provide their own apps that also function as wallets for payments. Then there are crypto-native wallets like MetaMask, Rainbow, and many others. It is recommended to conduct your own research to determine the best option or options to suit your needs.

Once you have chosen a wallet and getting it set up, the next thing to do is to include a crypto to it, so you have an available cash balance that you can use to purchase. This can be a fast process since many wallets allow in-app purchase options.

How does a buyer know which cryptocurrency to add?

It's a great question! Often, it doesn't actually need to be a factor, with the exception of charges that could add up in the event that they must exchange currency. Some crypto payment processors will provide automatic exchange options which allow users to make payments in one currency and you will receive the money in a different.

If that's not feasible some crypto wallets have in-wallet exchange/swap functionality so that if a customer holds bitcoin (BTC) but wishes to pay using ethereum (ETH) then they are able to do so effortlessly. It is ideal to load your wallet with whatever money you wish to pay with, but it's not always possible in advance of making an purchase.

2. Make sure that their wallet is connected with your website

There are two options for customers to connect their wallets to your site: either a QR code (or browser) wallet connection. Payment processors that accept crypto may provide one or the other choices.

QR code

This method is ideal for customers who have the crypto wallet in an app for their mobile. If someone decides to pay using crypto, they're presented with a QR code that is scannable using a tool in the app for their crypto wallet.

The browser wallet is connected to your account

This is the best option for those who connect to the crypto wallet using an extension for their browser on the web. If someone opts for this method it prompts them to join to their Web3 wallet via an icon, which opens the browser's wallet, and requests for authorization to connect.

3. Complete the payment and receive a confirmation.

Whichever route the customer follows it will give them prompts to guide them through making payment - whether through the application or in the browser.

When payment is received it can take a delay (usually only seconds) until payment confirmation by the blockchain. Once this is done, the customer and you are both notified of the confirmation. When transactions are conducted directly on-chain, you may be both issued a blockchain transaction ID.

And that's it!

What exactly do these procedures translate to merchants?

There's a significant gap between a client who is already familiar with crypto and is willing to go through a transaction and someone who's never 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 the entry point.

Initial crypto payments are likely to come from more experienced cryptocurrency users. In time, the number is expected to grow substantially. So, if your followers and customers have indicated that they're interested by crypto, it may be worthwhile to direct them to reputable sites so they'll be able to understand how to make payments to you the manner they want.

The advantages of using crypto payments for your clients

1. They hold crypto and would like to use it! Maybe they're an early investor, they're a great trader, or are their money in crypto.
2. It's more affordable for customers to spend crypto directly rather than pay exchange and/or forex fees for traditional payments. 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 access other payment methods.
4. Some prefer keeping specific transactions secret or distinct from their other financial activities.
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 the amount of daily payments This is especially true for high-cost, luxury items that might exceed a user's daily banking limits.
8. It's a cost for an digitally-native asset like an NFT.

Considerations of the customer to keep in your

You can see that there's a wide range of options when it comes to payment via crypto based on customer experience. There are a few aspects to bear in your mind when selecting as well as operating cryptocurrency payments:

1. How simple is it for your clients to pay, and with what currencies?
2. Do your customers get exposure to fees from crypto networks directly? It could be more expensive for them to be able to pay for a service if it is full.
3. Are you aware of the process of dispute resolution? This is especially important when there's the absence of conventional payment and refund options. Customers who are unhappy or dissatisfied are more likely to complain and write negative reviews.
4. What time will the customers have to wait for order confirmation? Based on the method you're using to allow your customers to pay for their purchases, they may need wait longer than normal. In this case, using a payments partner can help, as they can often keep both fees and confirmation time very short.
5. Do shoppers need information? Customers may appreciate education about how they can pay with crypto, along with guidance regarding security and how to avoid frauds.

Confidently help your customers embrace the new world of payment

Merchants are able to choose crypto processing options that are simple and easy to use. Customers, on the other hand, will encounter a completely different experience when paying.

There are millions of crypto users that are currently ready, willing, and able to pay with crypto. While crypto payment options are getting easier and more straightforward but it's important for merchants to understand the experiences of their customers and the consequences of their actions in order to make the most of this opportunities for growth.