Crypto acquiring is a transformative payment process. It allows businesses to accept cryptocurrency as a medium of payment in return for goods and services. It is a digital asset equal to traditional physical card acquiring like businesses accept debit and credit cards.
With crypto acquiring instead of traditional money, a business can expand its payment systems in various cryptocurrencies like Ethereum, Bitcoin, and more.
This payment system began to emerge in the early 2010s after the creation of Bitcoin in 2009. As cryptocurrencies evolved and grew, businesses saw this as an opportunity to get into the new market of cryptocurrencies.
The first noticeable transaction of a business accepting Bitcoin as a payment medium was in May 2010. A programmer bought two pizzas for 10,000 BTC which is worth millions of dollars today
Since that time, cryptocurrency has developed with more advanced payment processors and more platforms being built to facilitate transactions for businesses around the world.
How does crypto acquiring work?
Crypto acquiring involves multiple steps that make a transaction successful between the customer and a business:
Integration
First, a business integrates a crypto payment system into its point-of-sale system or its e-commerce platform. They could do this by using plugins, and hardware of APIs.
Payment Selection
When everything is set up, a customer just has to choose the option of paying through cryptocurrency. They then select a cryptocurrency that they want to use from the options provided by the merchant.
QR Code Generation
Once a cryptocurrency is selected the merchant’s system generates a very unique QR code for the transaction with the payment amount and the merchant’s wallet address.
Payment
The customer needs to scan the QR code by using their cryptocurrency wallet app on their mobile phone and then the payment gets processed.
Blockchain Confirmation
The transaction is then sent to the relevant cryptocurrency network for confirmation. This process might take some minutes or it’s done in some seconds as well depending on the network congestion and the type of cryptocurrency.
Completion
After the network confirms the transaction, the payment is completed. The cryptocurrency is transferred from the customer’s wallet to the merchant’s account.
Conversion
Some businesses also offer instant conversion of cryptocurrencies into fiat money. By doing this businesses get payment in traditional currency only instead of crypto transactions.
Why does crypto acquiring matter?
Crypto acquiring matters for several reasons:
Lower transaction fees
Cryptocurrency transactions do not require hefty fees. They typically involve lower fees compared to other traditional payment methods like credit cards. This can cause significant savings for customers and businesses, especially for those who deal with high-volume transactions daily.
Expanding Customer Base
By accepting cryptocurrencies businesses can open themselves to more people around the world like crypto investors and enthusiasts. This can bring in more sales and customer loyalty.
Reduction in frauds
Cryptocurrency transactions are irreversible once they are confirmed on the blockchain technology. This eliminates the risk of reversing the transactions or chargebacks.
Faster transactions
Sometimes traditional bank transfers can take up to days to be completed especially in the case of international transactions whereas crypto payments get done in minutes.
Global customers
Cryptocurrencies are the same all around the world. So it makes it very easy for businesses to accept cryptocurrency as a mode of payment. Plus there is no stress about converting the currency and international fees.
How to integrate Crypto acquiring into your business?
If you want to integrate crypto into your payment systems then refer to the steps below:
- The first step is to sign up for a cryptocurrency payment processor. You have to go to their website, create an account, enter all the necessary details, create a strong password, and make a merchant account to start accepting crypto payments.
- Then, you need to connect the crypto payment processor with your business system. You can do this by using API or plugins offered by your payment processor. But for this step you need to know the technicality so take the help of technical experts.
- Many businesses like to convert cryptocurrency to traditional money so see if your payment processor offers conversations into fiat money.
- Once everything is set up as you want test the system yourself to make sure there are no issues and start accepting crypto payments.
Conclusion
Crypto acquiring shows a significant shift in how businesses are evolving with changes in the financial industry.
This payment system comes with multiple benefits which not only works for businesses but for the customers as well. As cryptocurrency develops we can see more businesses acquiring cryptocurrency as a medium of payment.
