If you run an online store, you might be looking for ways to accept payments from your customers using cryptocurrencies. Cryptocurrencies are digital assets that can be transferred securely and anonymously over the internet. They offer many benefits for both merchants and consumers, such as lower fees, faster transactions, and more privacy.
However, accepting crypto payments is not as simple as setting up a PayPal account. You need to find a reliable and trustworthy crypto payments provider that can handle the technical aspects of processing and converting crypto transactions.
There are many factors to consider when choosing a crypto payments provider for your eCommerce store.
To start, we have to know that there are two different types of crypto payment providers, namely:
Custodial and Non-Custodial crypto payments providers.
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One of the key choices you need to make when enabling cryptocurrency payments on your WooCommerce site is whether to use a custodial or non-custodial service provider.
Custodial Crypto Payments Providers
Custodial crypto payments providers are services that store your crypto assets on your behalf and manage the exchange and settlement of your transactions.
This option provides convenience and a familiar user experience for merchants. You’ll have support, can trust the terms of service, and can benefit from more features because your service provider handles your crypto accounts for you.
You can seamlessly integrate it with your WooCommerce store using a WooCommerce extension. WooCommerce is one of the most popular e-commerce platforms in the world, powering over 30% of all online stores. WooCommerce offers a wide range of extensions and plugins that allow you to customize your store and add various features and functionalities.
A custodial crypto payments provider typically offers a fully-integrated WooCommerce extension that allows you to accept one or more cryptocurrencies from your customers. The extension will automatically display the crypto payment option on your checkout page, generate a QR code or a wallet address for your customers to scan or copy, and confirm the payment once it is received.
The extension will also handle the conversion of the crypto payment into your preferred fiat currency (such as USD, EUR, GBP, etc.) and send it directly to your bank account. This way, you don’t have to worry about managing your own crypto wallet, dealing with exchange rates, or transferring funds manually.
Benefits of using custodial crypto payments
- Fully supported WooCommerce extension
- Reduced transaction costs and immunity from refunds and chargebacks
- Custodial providers protect the users' crypto assets from hackers, theft, and loss
- Custodial providers offer a user-friendly and seamless experience for crypto payments
- Custodial providers comply with the laws and regulations in their jurisdictions
- Payments are sent directly to your bank account in fiat currency
Examples of Custodial Crypto payment methods
- Coinbase Commerce: This is a service that allows merchants to accept multiple cryptocurrencies and convert them into fiat currencies. It also offers features such as invoices, refunds, and customer support.
- BitPay: This is a service that supports Bitcoin and other popular cryptocurrencies, as well as stablecoins and tokens. It also offers features such as fraud prevention, tax compliance, and direct bank deposits.
- CoinGate: This is a service that supports over 50 cryptocurrencies and allows merchants to choose their preferred payout currency. It also offers features such as recurring payments, lightning networks, and plugins for various e-commerce platforms.
Non-Custodial Crypto Payments
You may have heard of the term “non-custodial crypto payments provider” if you are a merchant who wants to accept cryptocurrency as a payment option on your online store. But what does it mean and why should you consider using one?
A non-custodial crypto payments provider is a service that allows you to accept cryptocurrency payments without having to store or manage the private keys of your customers’ crypto wallets. This means that you do not have to worry about the security and custody of your customers’ funds, as they are directly transferred from their wallets to yours.
To use a non-custodial crypto payments provider, you will need to have your own crypto wallet where you can receive and manage your funds. You will also need to install a plugin or extension on your WooCommerce store that connects with the provider’s API or QR code. Depending on the provider, you may also need to create an account or register your store with them.
Non-custodial crypto payment providers offer a great way for merchants to accept cryptocurrency payments without compromising their security, privacy, or autonomy. They also open up new opportunities for expanding your customer base, reducing your costs, and improving your cash flow. If you are interested in exploring this option for your online store, you can start by checking out some of the providers mentioned above.
Benefits of using a non-custodial crypto payments provider:
- You have full control and ownership of your crypto funds as soon as they are received, without having to wait for a third-party settlement or approval.
- You have fewer restrictions and terms of service imposed by a custodial provider, such as account suspension, cancellation, or limits.
- You have lower transaction fees and more protection from chargebacks and refunds, as crypto transactions are irreversible and final.
- You have access to a wider range of cryptocurrencies and tokens, as well as the possibility to sell non-fungible tokens (NFTs) in your store.
Examples of Non-Custodial crypto payment providers
- NOWPayments: This service supports over 140 cryptocurrencies and allows you to accept payments in any currency of your choice. It also offers features such as auto coin conversion, fiat settlement, and donation buttons.
- Ikajo International: This is a global payment processor that caters to both low and high-risk businesses. It supports Bitcoin and other popular cryptocurrencies, as well as fiat currencies. It also offers fraud prevention, chargeback protection, and customer support.
- Exodus: This is a popular non-custodial crypto wallet that also offers a payment gateway for merchants. It supports over 100 cryptocurrencies and tokens, including NFTs. It also provides an intuitive user interface, live charts, and portfolio management.
- Trust Wallet: This is another non-custodial crypto wallet that also enables merchants to accept payments on their websites. It supports over 160 cryptocurrencies and tokens, including NFTs. It also integrates with Web3 applications, such as decentralized exchanges and marketplaces.
In conclusion, custodial and non-custodial crypto payments are two different ways of accepting cryptocurrency on your online store. Custodial payments offer convenience and security but also involve trusting a third-party provider with your funds and keys.
Non-custodial payments offer autonomy and privacy but also require you to secure and manage your wallet and keys. Depending on your preferences and needs, you can choose the option that suits you best. Both options have their advantages and disadvantages, so make sure to do your research before deciding.