A 101 for Merchants Interested in Accepting Cryptocurrencies

How Merchants Can Boost Business with a Cash Discount Program

How Merchants Can Boost Business with a Cash Discount Program

This article provides a simple understanding of the issues that should be considered by merchants interested in adding cryptocurrencies to their payments acceptance strategy:

“To get started, you will first need a bitcoin wallet, which allows you to buy, store, and sell the cryptocurrency. Bitcoin wallets come with private keys, or a secret number that allows the holder to access their crypto. You can also get a “hardware wallet” where you either write down your keys or keep them on a hard drive to avoid storing them online. Companies can also sign up with a crypto exchange such as Coinbase or Lumi Wallet, which stores keys on a third-party server. Bitcoin.org has a helpful tool that can help you select the wallet that is best for your business.

If you’re an online merchant who wants to accept payment in Bitcoin, platforms like Etsy and Shopify have partnered with payment processors like Coinbase Commerce and Bitpay, which allow e-commerce stores to accept Bitcoin. Business owners can also sign up on Coinbase Commerce and other payment processors directly. Such payment processors are free to set up, and allow merchants to directly accept crypto payments from customers anywhere in the world.

But small business owners should keep a number of things in mind before accepting crypto. Ali Hamam, the vice-president of Ontario-based restaurant chain Tahini’s Mediterranean Cuisine, converted all of his business’s cash reserves into Bitcoin as an inflation hedge last year, but he’s less enthusiastic about the currency as a payment method.”

Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group

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