With the increasing adoption of digital asset currencies, consumers businesses now have the chance to attract customers and generate revenue by accepting digital asset payments.
Although digital assets still constitute a share of overall transactions at present, offering this payment option can facilitate merchants in connecting with digital asset savvy consumers who are eager to utilize their holdings.
Moreover, incorporating digital asset currency payments also serves as an indication to customers that your business is forward thinking and receptive to emerging technologies.
What Are Digital Asset Payments in Digital Banking?
Digital asset currency payments enable individuals to make payments for goods and services.
With the increasing popularity of digital asset currencies in years more businesses are considering accepting these assets as direct payment options. This means that customers can use the digital asset currencies they hold in their wallets without having to convert them into currencies first.
Although the idea of digital asset currency payments is still new, major payment processors and digital banking platforms have begun providing the infrastructure and tools to support merchants in accepting digital asset payments.
This allows businesses to seamlessly incorporate digital asset currency payment acceptance into their existing payment processes without encountering complexities.
Let's delve into some aspects of payments, within the realm of digital banking.
How to Use Digital Asset Currency in Your Business?
There are a few main ways a business can start accepting digital asset payments:
Integrate a digital asset payments gateway. Several payment processors now offer plugins or APIs that allow online merchants to accept digital asset currencies alongside regular credit/debit cards on their checkout pages.
Open a business account with a digital asset friendly bank. Banks like Jetonbank provide business banking services and allow merchants to directly receive digital asset payments into their accounts. Funds can then be transferred or spent like a regular bank balance.
Use standalone digital asset payment services. Companies like Cash App for Business, Square, and PayPal allow businesses to generate payment addresses or QR codes and manually receive digital asset payments sent to those addresses. Funds are then deposited into the business' linked digital asset friendly account.
Accept digital asset payments physically at retail locations. A business can display digital asset currency payment addresses printed as QR codes at physical checkout counters to allow customers to scan and pay using their digital asset wallets.
No matter the option, ensure to clearly display supported digital asset currencies, any transaction fees charged, and processing times for customers to be aware of when making digital asset payments to your business. Educating customers about digital asset payments is also important for adoption.
How Can My Business Accept Digital Asset Payments?
Here are a few ways your business can start accepting digital asset currency payments:
Work with a digital asset/currency payment processor. Leading providers offer easy plugins and APIs that allow seamlessly accepting major digital currencies alongside regular fiat payments on checkout pages. They handle all the technical aspects behind the scenes.
Take into consideration both physical solutions, for your point of sale needs. For merchants it's beneficial to seek out one click checkout integrations. If you have locations there are options such as payment card terminals that can accept digital asset scans or transfers.
Usually processors will deposit the funds from your sales into your business account after deducting any fees. Some processors even offer the choice of settling in currencies or receiving digital assets at spot prices.
To make things easier for you there are open source plugins designed specifically for platforms like WordPress and WooCommerce. These plugins enable you to accept currencies, with minimal setup or maintenance required on your part.
If you're looking to dip your toes into the expanding world of digital asset currency users and payments it's an idea to begin with a reliable payments gateway. Starting small, with a trusted provider requires effort. If you need any suggestions for providers to explore further just let me know.
How to Accept Digital Asset Payments in Digital Banking?
Another convenient way for how to accept digital asset payments as a business, especially those with physical retail locations, to accept digital asset payments is by opening an account with a digital asset friendly bank. This allows directly depositing received digital asset payments into the business bank account, without needing to use a third party digital asset payments processor.
A pioneer in this space is the Swiss digital bank Jetonbank. Any digital asset payments sent to these addresses get automatically converted to fiat currency like EUR or USD based on live market prices, and deposited into the merchant's Jetonbank account balance.
Funds can then be used by writing checks or making transfers like a regular business bank account. Jetonbank also provides digital asset storage and trading capabilities on its platform. Another similar option for US businesses is Silvergate Bank, which allows direct digital asset-to-fiat settlements for currency payments into business accounts.
Opening an account with a digital asset friendly bank like Jetonbank allows seamless digital asset payments acceptance without third party fees. It's best suited for merchants already operating a physical business that wants the convenience of direct digital asset-to-fiat settlements.
What is a Digital Asset Wallet?
A digital asset wallet refers to the software or online platform that allows storing and transacting with digital asset currencies. It generates a public address for receiving digital assets and a private key for signing transactions.
There are different types of digital asset wallets suitable for various needs:
- Software/Desktop Wallets - Installed on a computer like the digital asset wallet. Best for large holdings due to extra security.
- Mobile Wallets - Convenient apps like Coinbase Wallet for transacting on the go. Easier to use than desktop wallets.
- Web/Online Wallets - Hosted by an exchange like Coinbase. Fast and easy setup but the provider holds the private keys.
- Hardware Wallets - External devices like Trezor that provide maximum security by keeping private keys offline.
- Paper Wallets - digital asset currency addresses and private keys printed on paper for cold storage.
Businesses accepting digital asset payments should have a non-custodial wallet that allows generating payment addresses. An online or hardware wallet provides a good balance of usability and security for most merchant needs.
How to Use a Digital Asset Wallet While Accepting Digital Asset Payments?
To start accepting digital asset currency payments through a wallet businesses initially need to create a public payment address, for each supported digital asset currency. This can be easily done by selecting the "Receive" or "Payments" option in the chosen wallet application or website.
Once generated the address should be clearly marked with the corresponding digital asset currency, such as "Receive BTC" or "ETH Payment Address". Shared with customers who wish to make payments. These addresses can often be used again for transactions.
When a customer sends their preferred digital asset currency to the provided address the transaction is broadcasted on the blockchain network. Eventually confirmed. Most wallets offer the ability to track transactions and update balances once confirmations are received.
For security measures it is advisable for businesses to consider utilizing a non custodial wallet specifically designed for receiving digital asset payments instead of reusing personal accounts. Additionally it is crucial to back up and securely store keys.
With some practice generating addresses and monitoring payments through a wallet becomes simple. Allows for seamless acceptance of digital assets from customers.
Best Ways to Use Digital Asset Payments in Business
Here are a few recommended practices, for businesses looking to incorporate digital asset currency payments;
- Embrace stablecoins to minimize volatility risks.
- Convert digital asset currency to fiat currency on a basis.
- Encourage customers to make payments by offering discounts.
- Promote the acceptance of digital asset currencies clearly and prominently.
- Enable omnichannel acceptance of digital asset currency payments.
- Choose a partner for implementing digital asset/currency payment solutions.
By following these practices businesses can effectively leverage digital asset currency payments while reducing risks and enhancing convenience, for both themselves and their customers.
To optimize settlement processes businesses can consider depositing payments into the best digital asset friendly bank account, like Jetonbank. This approach offers advantages, such as processing fees, access to a broader customer base and staying ahead in the constantly evolving digital currency economy. By embracing digital asset currency acceptance any business can reap the benefits.
To sum it up, incorporating digital asset currency as a payment option for your business has become extremely convenient due to the turnkey solutions offered by processors. You can begin with a partner that manages all the aspects behind the scenes enabling you to try out digital asset payments with minimal risk and effort.
By embracing currencies you can future proof your business. Gain an edge over early adopters thereby capitalizing on the expanding digital asset/currency economy. Don't miss this opportunity – reach out to a payments specialist today to get started.
