How to Implement Bitcoin Payment Services in eCommerce Website?

Darshit Parmar
Darshit Parmar is a dedicated eCommerce consultant at M-Connect Media, a sales-oriented e-business development company.
There are more than 1000 cryptocurrencies available across the world, but Bitcoin has gained a significant advantage over others. The cryptocurrencies are capitalizing the market with more than $150 billion dollars.

Once a confused term for the digital platform, the cryptocurrencies now have become a go-to payment solution in various industries. Making payment by using cryptocurrencies is now fast, easy and secure. It is also considered as the most convenient payment for international transactions.

Why should you Implement Bitcoin on your website?

As the most popular form of cryptocurrency, it is the best option for you to implement on your digital platform. Companies such as Microsoft, Subway, Expedia, PayPal and many others are accepting bitcoins as payment. Thus, cryptocurrencies are increasingly becoming a worthwhile addition to any e-commerce website. Bitcoin changes the eCommerce world, both sellers and buyers alike are now recognizing the huge advantages of Bitcoin.

Bitcoin Payment Gateway will Provide the following Benefits to your Website

  • High Security

Bitcoin runs on a multi-level encryption ecosystem which guarantees that the Bitcoin funds are very safe. It uses SHA-256 encryption to secure transactions. Besides, it is based on Blockchain technology which represents every step of payment as ledgers and is available online.

  • Decentralized System

Cryptocurrencies work only online and there are no authorities governing them. there are no hidden costs, screenings, process and terms of services.

  • Protection from malicious activities

Wire transfers and credit cards are susceptible to identity theft, but the specificity of Bitcoin prevents fraud when it comes to payments.

  • Low Fees

Every transaction through Bitcoin costs between $0.30 to $1.00 which makes it a highly affordable payment option for international transactions. This cost even includes additional fees to speed up the transaction. On the other hand, conventional payment methods include various fees which start from $3 and can increase to be up to 5% of the entire transaction value.

  • No Chargebacks

In general, banks throw return charges back on retailers if consumers cancel an order. Retailers also have to guarantee and submit the proof of cancellation to banks. The nature of Bitcoin has declined the chargebacks as it runs on the protocol of one final transaction. Once a payment has been made, a customer cannot cancel the transaction. This helps to keep the business safe by preventing chargebacks.

  • No Exchange cost

Right now there are many options like PayPal and wire transfer available for International fund transfers. As the international transactions are subject to exchange rates, they charge hefty money exchange fees to users. But with cryptocurrency, there are no exchange rates and processing fees which make it a hassle-free way of transferring funds across the globe.

  • Quick International transfers

The entire process of blockchain just takes a maximum of 10 minutes to complete a transaction. Unlike traditional payment methods which depend on third-party companies and banks which can take 2-3 days for fund transfers.

How to Implement Bitcoin Payments?

Most online shoppers love to have different payment options available for convenience. Your website should have at least three types of payment gateway integrations, including Credit Card, PayPal, and Cash on Delivery. Right now it is a wise way if you are offering customers Bitcoin as the additional option for making payments.

In order to figure out which payment options to offer to your consumers, you just need to check out with your target audience to learn which options they are using the most.

For implementing Bitcoin as the payment gateway in your e-commerce website, the foremost thing you should check it their legibility in your country. Although Bitcoin is the growing stronger day by day, there are not legal in every country. You can also check out this list to find out if it is legal in your country or not.

  • Setting Up Bitcoin Payments on your Own

If you are an Internet of Things pro and want to set up the Bitcoin payment as your own, then you just need to set up an account with Bitcoin exchange sites like Bitfinex, Coinbase, Bitstamp or Kraken. Then you have to download a Bitcoin wallet like Armory or Electrum.

All you need is to set up your wallet and generate a bunch of receiving Bitcoin addresses. After receiving the addresses, you need to save them on your server. Then you have to distribute these receiving addresses to your customers who are paying for their orders using Bitcoins. Your customers will receive unique Bitcoin addresses for making their payments.

After the payment lands in your Bitcoin wallet, you can exchange it for your preferred currency using your Bitcoin exchange account. Although this is a daunting task for a layman as it requires significant web development skills, it will prevent a need to spend hundreds of dollars for taking on third-party services. You will have more control over your budget too.

  • Setting Up Bitcoin Payments Using Plugins

If you are unable to set up a Bitcoin payment on your own, you can use plugins that are designed to accept payment on different platforms like WooCommerce, Shopify, and Magento. All you have to do is to set up a Bitcoin wallet on Electrum or Armory and accept payments. Again to monetize your bitcoins, you have to use exchange services. This can be skipped when using integrated cryptocurrencies solutions.

  • Setting Up Bitcoin Payments with Third-Party Providers

Bitcoin has opened up wide horizons for different industries. One such industry is Information and technology. For non-coders, there are many third-party service providers who are integrating Bitcoin payment processes for your e-commerce website.

Some well-known companies for integrating the Bitcoin payment process 

  • BitPay

Is an international payment processor for business and charities. It has plugins for every e-commerce system including Magento, WooCommerce, Shopify, and SaaS as well. It also works with Amazon Web Services that enable you to ship and sell items easily.

  • CoinBase

Is another popular Bitcoin payment process with 0% set up fees. The company provides an HTML widget to allow easy embedding of payment buttons on your website. The plugin is available for the majority of platforms, but it currently only supports US bank accounts as the funding source. Dell and Expedia are using CoinBase as their Bitcoin payment gateway.

  • BIPS

BIPS stands for Bitcoin Internet Payment System which is a payment processor that promotes retailers across the world in buying and selling bitcoins and accepting bitcoin payments on digital platforms. It enables you to store and archive invoices and inventories. There is also API access to help provide a mobile-friendly experience for your consumers.

  • Blockchain Merchant

This application is specially developed for retailers as a simple and easy POS system to accept Bitcoin payments. This application is only accessible on the Android operating system.

Key Thoughts

Bitcoin is fluctuating, but it is safe to expect that they are now an established digital currency that is evolving and growing in popularity. Many e-commerce ventures have already integrated Bitcoin payments for the convenience of their customers. Selecting the best option for accepting Bitcoin payment widely depends on your technical skills and your business requirements. 

Darshit Parmar
Darshit Parmar is a dedicated eCommerce consultant at M-Connect Media, a sales-oriented e-business development company.

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