Cryptocurrency payments have become increasingly popular among both businesses and customers. While bitcoin (BTC) is the most preferred choice of crypto payments among customers and businesses, several altcoins can be accepted as payment. Crypto payments have helped businesses achieve greater efficiency, lower transaction costs, gain an advantage over their competition, and give customers the benefit of more payment options. Furthermore, the growing number of crypto users makes it critical for businesses to offer crypto payments and gain access to a new class of customers.
In this article, we will take a closer look at alternatives to Bitcoin when it comes to crypto payments and how to accept altcoin payments using SmartPay. SmartPay is a user-friendly payment gateway that supports the acceptance of Bitcoin and other major altcoins.
What Is An Altcoin?
Before we move to the meat of the article, it is essential to understand what exactly an altcoin is. Most people consider all cryptocurrencies other than Bitcoin to be classified as altcoins. Different altcoins utilize different consensus mechanisms to validate transactions and attempt to distinguish themselves from one another by offering different capabilities and purposes.
Why Should A Business Accept Crypto Payments?
We must first consider why a business should accept crypto payment before discussing how to accept altcoin payments. There are several reasons for this, such as lower fees, eliminating chargebacks and fraud, instant settlement, and offering customers greater convenience and increased flexibility in their payment choices. Let’s look at each in a little more detail.
Save Money On Processing Fees
Credit card processing fees typically vary between 3% and 5%, and are a significant expense for merchants. For example, if a merchant processes a transaction worth $10,000, $300 will be paid toward processing fees. Integrating crypto payments allows businesses to eliminate these added costs and bring greater efficiency. As a result, businesses can improve their revenue while offering customers the best value for their money.
Crypto payments also give businesses access to a new global user base that prefers using cryptocurrencies to make payments. According to data from Global Cryptocurrency Ownership, there are over 420 million cryptocurrency users worldwide, with 55 million based in the US. It will also allow businesses to transact with international customers without worrying about excessive international fees.
No Risk Of Chargebacks
Fraudulent chargebacks are the bane of a business. While chargebacks may be justified in some cases, such as unsatisfactory service or a faulty product, some customers often abuse them. Customers with malicious intentions may request after receiving goods or services, leading to businesses incurring considerable additional costs and losses.
Accepting crypto payments removes the risk of fraudulent chargebacks because crypto transactions are immutable. Once they are completed, they cannot be reversed. Do note that a merchant can choose to issue a refund through SmartPay, but it’s not a forced chargeback.
Pros And Cons Of Accepting Crypto Payments
- Extremely low transaction fees.
- Reduces the overall time spent processing a transaction.
- No risk of chargebacks.
- Gives businesses the opportunity to attract new customers that prefer using crypto.
- Cryptocurrencies held by businesses could also double up as an investment.
- Accepting crypto payments simplifies international transactions, making purchases easy and eliminating high fees.
- Crypto transactions are still not widely used or accepted as a means of exchange.
- Transactions could take time to complete depending on network activity. Greater network congestion could lead to higher wait times.
- Lack of regulation in the crypto space can lead to sudden changes that can limit or restrict transactions to comply with applicable law.
Crypto Payments And Traditional Payments – A Comparison
A business accepting crypto payments will end up paying lesser fees when compared to using traditional payment options. However, crypto payments have a higher learning curve and require a little bit of technical know-how. Another point to remember is that crypto is a decentralized payment method. This means if there is any error or failure when conducting a transaction, businesses can’t turn to anyone to resolve it. Transactions, once processed, are immutable and cannot be reversed or altered. Thus crypto payments place a higher responsibility on the merchant.
Traditional payment processors also typically side with the customer in the event of a dispute, and merchants are required to pay a chargeback fee. However, once payment in crypto is processed, no third party can intervene and reverse the transaction.
|Traditional Payment Systems
|All payments are processed on the blockchain.
|All payments are processed through a payment processor.
|No excessive processing charges.
|Traditional payment systems feature a processing fee of 3% to 5%. Credit cards can exceed 5%.
|There is no way to handle disputes between the customer and business.
|Businesses and customers can access support. However, payment processors traditionally side with customers in the event of a dispute.
|Merchants do not have to worry about chargebacks.
|Customers can request a chargeback which could cost the merchant a fee. This could vary depending on the payment processor.
|Transaction speeds can vary. Typically transactions are instant but could take longer during periods of network congestion.
|Transactions are processed instantly.
How To Accept Altcoin Payments Via SmartPay?
Now let’s look at how to accept altcoin payments using SmartPay. SmartPay is a payment processing platform from CoinSmart that enables businesses to receive and send crypto payments without any prior technical know-how and market risk. It also gives businesses guaranteed exchange rates, instant fiat conversion, quick settlements, low transaction feesm and support from a team of blockchain and payment professionals.
Through SmartPay, businesses can utilize cryptocurrencies as an efficient and cost-effective way to collect payments, issue invoices, pay their suppliers, and process inbound and outbound payments. It also eliminates the risk of chargebacks and allows businesses to broaden their customer base. SmartPay is easy to use, with businesses having to simply create an account on the platform. Furthermore, SmartPay can also be integrated into websites and existing payment processors using APIs.
Signing Up With SmartPay
Signing up with SmartPay is relatively straightforward. All you have to do is follow the steps listed below:
Select The Type Of Account
The first step before creating your account is to select a profile based on your needs. You can choose an individual profile or go with a business profile.
Create Your Account
Now that you have selected the type of account you want, you need to create your account. To create your account, you must enter a valid email address and create a strong password. Once you have entered the required details, click on “Create Account.”
Once you submit your details, you need to verify your account.. You will receive an email from SmartPay with instructions on verifying your account. All users must verify their account before logging in to SmartPay.
Log In To SmartPay
Once you have verified your account, you can log in to SmartPay. However, before accessing your SmartPay dashboard, you must submit additional details such as phone number, first and last name, and preferred currency. Once you have entered your details, click on “update profile” and save your account details. After completing this process, SmartPay’s compliance team will contact you to complete the account verification process.
Your SmartPay Dashboard
The SmartPay dashboard provides a convenient summary of your account and its contents. It allows you to easily access and review your latest invoices, including the invoice date, amount, and status. Additionally, you have the ability to generate new invoices directly from the dashboard. Managing your funds is effortless as you can create and configure new wallets, and conveniently monitor the balances of both your cryptocurrency and fiat wallets from the dashboard.
Things To Factor Before Accepting Altcoin Payments
Now that we have understood how to accept altcoin payments let’s look at a couple of essential factors to consider. One of the most important things to consider before accepting altcoin payments is local regulations. It is always prudent to check for the current regulations in the jurisdiction where your business is located. Accepting crypto where its legality is in question could lead to significant consequences for your business, such as hefty fines.
How To Accept Altcoin Payments: In Closing
Accepting payments in crypto has revolutionized how businesses and customers interact and conduct transactions. Removing intermediaries from transactions has resulted in a more efficient system and eliminated excessive costs, helping businesses streamline and increase revenue. Thanks to SmartPay, businesses can integrate crypto payment support on their platforms and give customers a highly efficient and secure payment method.
We hope our article on how to accept altcoin payments helps you understand the benefits of crypto payments. If you wish to learn more about SmartPay or start accepting crypto payments, you can visit SmartPay’s website and get started.
How To Accept Altcoin Payments: FAQs
What is considered an altcoin?
Other cryptocurrencies apart from Bitcoin (BTC) are considered altcoins. Altcoins use different consensus mechanisms to validate transactions and provide additional capabilities. They have essentially improved versions of the original cryptocurrency they are derived from since they address perceived shortcomings.
What are the top altcoins in the market?
If we look at data from CoinMarketCap, we can see that Ethereum (ETH), Tether (USDT), USD Coin (USDC), XRP (XRP), and Cardano (ADA) are the top altcoins in the market.
What Is The Best Altcoin To Invest In?
The best altcoin from an investment point of view is subjective and depends on your financial goals, risk appetite, and the market situation. It is best to thoroughly research or speak to an advisor before investing.
Is Bitcoin an altcoin?
People do not consider Bitcoin an altcoin. They use the term altcoin to describe all other cryptocurrencies except BTC.