How Your Customers Can Pay you using Crypto

It is crucial to understand the perspectives of your customers particularly at crucial moments of transformation like checkout. A key element of an efficient checkout experience is providing an effective, secure process that allows customers to make payments using the payment method they prefer.

In this post will help you with understanding how a transaction is managed from your customers' point of view from the perspective of a buyer. With this knowledge you'll recognize ways to improve the speed that you can convert your customers, give direct support to customers, and also educate them and prospective customers.

Crypto vocab check

You can dig into the terms in these categories a deeper in this article. However, here's an overview of the key terms:

Public Key: Essentially the information you need for sending you cryptocurrency.

Public address: A hashed (basically shorter) version of an open key. It is the kind of address that you can provide to anyone who wishes to send you money. Imagine it as a Venmo username, or a PayPal.me URL. (e.g., 0x12B0aD31f483Cdf4741de8f5679A472E5fe3345G)

Private keys: lets the user gain access to funds transferred to the public key. The private key 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): It holds public and private keys for transactions using blockchain.

Seed word: A set of random phrases generated by a computer that allow access to the Wweb3 wallet. It is utilized to get access to a cryptocurrency-based wallet. The information should never be disclosed to an outside party.

The wallet that is not custodial is owned by the user. their own private keys, and have access to their wallet via Wweb3. (e.g., Metamask, Trust Wallet. )

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

Peer-to-peer payments

There's a chance that you're considering "Isn't one of the main benefits of crypto the fact that they're peer-top-peer and do not rely on services from third parties?"

It is absolutely possible for you to receive money from your customer without the use of any tool or service from the third entity.

However, this isn't feasible for the typical person. It's simply not practical for them to create their own node, generate transactions using commands, and memorize their personal keys. In addition, the majority of merchants are happy to pay a small transaction cost to give customers the best experience with minimal friction while saving much time and energy when reconciling transactions with their order.

This post therefore focuses on the typical transactions made by e-commerce with the help of tools and services that are likely to be used by intermediate and beginner users.

A brief overview of the steps to make a cryptocurrency payment

From the point of view of a consumer There are three steps you should take:

1. It is possible to access a bankable digital wallet.
2. Link their wallets.
3. You can make the payment and after that, you'll receive a confirmation.

The exact experience will depend on the processing company and wallets used. Let's run through some scenarios and look at what's happening in each stage for the customer.

1. Get access to a digital wallet that is funded by cryptocurrency

There are lots of options for folks who want cryptocurrency wallets. Every option has distinct advantages, features and supports for diverse types of crypto chain in addition to the ability to make payments.

'Traditional' digital wallet providers such as PayPal or CashApp are currently able to accept payments made via cryptocurrency. The top crypto exchanges like Coinbase, Crypto.com, and Binance offer their own apps and also act as wallets for payments. There are also crypto-native wallets like MetaMask, Rainbow, and many other options. Make the necessary study in order to find the best option or options for your specific needs.

When you've selected an account and it is installed, the next step is adding cryptocurrency to it so that there is a cash balance you can make use of to buy. This can be a relatively simple procedure since most wallets provide the possibility of buying in-app.

What is the best way for a buyer to know which cryptocurrency to add?

It's a great answer! In most cases, it does not have to be an issue except for the cost that can add up in the event of having to exchange currencies. A few bitcoin payment processors have automated transfer services that permit customers to pay in one currency and you'll receive the cash in another.

If that's not feasible, most crypto wallets provide the ability to exchange or swap their accounts in real-time, so if a customer holds bitcoin (BTC) however wishes to pay using the cryptocurrency Ethereum (ETH) it's possible to do that easily. It's best to fill your wallet with whatever payment method you wish to make using, however it's not always feasible ahead the time you buy something.

2. Link their wallets with your website

There are two methods that customers can connect their wallets to your site using a QR code, or a browser wallet connection. Paying processors who accept crypto may provide either or both choices.

QR code

This is a great option for those who use their crypto wallet as an application for their mobile. When someone chooses to pay using cryptocurrency, they'll be presented with a QR code which is scannable using a utility inside the application that is associated with their crypto wallet.

The browser wallet is connected to your account

This option is perfect for users who have access to the crypto wallet via a browser extension. If someone opts for this method, they're asked to join their Web3 wallet using a button, which invokes the browser's wallet, asking for the authorization needed to connect.

3. Make the payment and you will receive confirmation.

Whatever method the user chooses to use, the wallet will then provide prompts that guide them to make a payment - whether in the app or through the browser.

When payment is completed, it is possible that the payment will be delayed. It is possible to experience an indefinite delay (usually only seconds) until payment confirmation through the blockchain. At this point, both you and the beneficiary will be notified. If blockchain transactions are made, you might both also receive the blockchain transaction ID.

Then, that's it!

What does this procedure apply to retail stores?

There's a distinct difference between someone who's comfortable with cryptocurrency and is ready to go through a transaction, as opposed to someone who has never dealt with cryptocurrency before. Getting set up with an appropriate digital wallet, financing it and knowing the process of making a payment can be a challenge to accessibility.

In the beginning, the transactions made with cryptocurrency are likely to be made by more knowledgeable clients of cryptocurrency. Over time, this number is predicted to rise significantly. Therefore, if your customers and customers have indicated that they're interested by crypto It could be advantageous for you to refer them to reliable sources so they can learn how to pay you the way they prefer.

Benefits of using cryptocurrency as a payment option for your clients

1. There's crypto in their wallets, and they are eager to make use of the cash! Perhaps they were an early investor, they're an excellent trader or have the money in cryptocurrency.
2. Customers can save money to use crypto for direct transactions instead of charging exchange fees or forex transactions in traditional method of payment. This is particularly the case when dealing with international clients.
3. They may not have access to other payment methods.
4. Some prefer keeping certain transactions private or separate from their other financial activities.
5. It's easier and secure.
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 the amount of money you pay each day, which is particularly true of high-cost, luxury things that could exceed a person's daily bank limits.
8. This is a price to pay for a digitally-native asset like an NFT.

The customer's needs to be kept in mind of

There's a wide range of possibilities for payment through crypto that are based on user experience. These are the things you should keep in mind when choosing and operating crypto payment options:

1. What's the best way for your clients to pay? What are the most efficient ways to pay? What are the best cryptocurrencies?
2. Do your customers get exposure to crypto network fees directly? This could make it difficult for them spend if the crypto network is extremely full.
3. Are you sure of how to resolve disagreements? This is crucial in the absence of conventional charges and refunds. Customers who are unhappy or dissatisfied tend to be more likely write negative reviews and complain about the company.
4. What time will the clients have to wait until confirmation of their orders? Based on the process you're using for allowing customers to pay, they might need to wait longer than normal. This is why the use of a payment service provider could aid, since they tend to keep costs as well as confirmation times extremely low.
5. Do consumers require information? The customers may want to know the methods to pay with cryptocurrency, as well as tips on security and ways to stay clear of fraudulent transactions.

Your clients can count on you to guide them into the world of payments in a new way.

Merchants are able to choose crypto processes that are simple and comfortable. The customers, on the other hand, will have a different customer experience when they pay.

A huge number of customers are currently eager, ready to pay with cryptocurrency. Although crypto-based payment methods have improved and become simpler, but it's important that merchants are aware of their customers' needs and what the implications of their decision so that they can make the most of the potential to increase their business.

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