Getting paid in crypto? Piece of cake

At cash registers, payment by card remains the most popular payment method among consumers. But some buyers prefer paying with cryptocurrencies. 

Interest in cryptocurrencies 

Thomas van Oosterom is the owner of Brouwpunt.nl, an online store specialising in the sale of beer-brewing packages and beer-brewing courses. Van Oosterom developed an interest in cryptocurrencies several years ago, when he heard about bitcoins’ success in the financial markets. He decided to study the workings of several cryptocurrencies, which piqued his interest further. 

Van Oosterom identifies a trend: “There are a growing number of online stores where you can pay with cryptocurrencies alongside transfers by payment systems such as iDEAL and PayPal. I knew all along I wanted to accept cryptocurrencies as a payment method for my online store. My customers can choose between different cryptocurrencies. I decide in advance which cryptocurrency I technically link to my online store.” 

Additional revenue 

Van Oosterom received a phone call from a customer: “He had noticed that I accept cryptos and wanted to pay for his order that way. Thirty minutes later, when I was checking the payment overview for my online store, I saw that he had paid by bitcoin. That turned out to have been a convenient option for this customer. If the option had not been available, he would have gone to the competition. That way, I generate additional revenue.” He also receives visitors through sites where you can buy cryptocurrencies: “They refer customers to my online store, which boosts my Search Engine Optimisation (SEO). It makes it easier for people to find my business on Google, Yahoo, or Bing.” 

Software 

Do you want to accept crypto? Then you need to install software for your online shop. Many online stores are built with WordPress, a popular free website system. WordPress has various extensions (plugins) that allow you to offer cryptocurrencies as a payment method. Talk to your website builder about which software suits you best.

You will also need a cryptowallet for your business. "That is the digital wallet into which the crypto currencies go," Van Oosterom explains. With a wallet, you receive, send and manage your crypto coins. You download an app to manage your wallet on your computer or smartphone. On the internet, you can find several crypto service providers where you open a wallet.

Payment 

A software application enables your customer to pay in just a few seconds using their cryptocurrencies, including bitcoin, ethereum, dash, or dogecoin in your website’s payment section. Van Oosterom: “Once a customer has entered their email address and order details, they select one of the digicoins from the payment menu. A QR code will be displayed, which you scan using your smartphone. The customers’ wallet will enter the amount, the fee, and the current exchange rate automatically. The customer can approve the payment by swiping across the screen. You will then automatically receive the sales amount in your wallet.” The amount can be transferred to your bank account automatically, or you can manage this yourself by means of a bank transfer. 

Conversion into fiat money 

The cryptocurrencies are now in your wallet, but you prefer to have them in a currency that is convenient to you – this is referred to as ‘fiat money’. Examples are euros, US dollars, or British pounds. Exchanges can often be done through the same crypto service provider where you have the crypto wallet. In your crypto app, you provide your bank account number. Then you easily transfer money from your wallet to your bank or vice versa. Besides fiat money, you can also exchange your crypto wallet for another kind of crypto. The revenues you earn from crypto payments are part of your overall revenue and, eventually, your profit. Depending on your legal form and capital, you will pay tax on this amount. 

Some important considerations 

Facilitating payment with, and receiving, cryptocurrencies will help you further digitalise your business. Decide what value cryptocurrencies add for your business. The opportunity to generate more revenue seems greater, because a customer might decide to look elsewhere if you do not accept cryptocurrencies. Use an account or wallet registered with the Dutch Central Bank. The Dutch Central Bank monitors whether registered providers of cryptocurrencies comply with the Money-Laundering and Terrorism Financing Act and the 1977 Sanctions Act. The following list of pros and cons will help you make your choice: 

Pros 

• You pay no fees for international payments, as you are using the same currency. 

• Payments are managed using blockchain technology. This is secure and reliable. 

• A growing number of payment services, including PayPal, accept cryptocurrencies as a means of payment. 

• Paying with cryptos is a rapid process: the amount is transferred directly from the customer to the vendor/supplier, or vice versa. 

• If you accept cryptocurrencies as a means of payment, you will ensure that your business will continue to attract new customers. 

Cons 

• You sometimes need to pay a fee for transfers involving cryptocurrencies, making the transaction expensive. 

• The public at large is still unfamiliar with cryptocurrency payments. 

• The value of cryptocurrencies fluctuates all the time. 

• Regulations on cryptocurrency are still nascent and need time to be developed. 

• There is no option to reverse payments, so you must carefully check that the cryptocurrencies are transferred to the correct wallet. 

• Some cryptocurrencies consume a lot of energy, which is harmful to the environment. 

Are you positive you are going to offer crypto payments? Then use a crypto service provider that is on the public register of De Nederlandsche Bank (DNB, in Dutch). DNB supervises these providers.