“Sorry, your card isn’t going through.”
This was a common response our team got every time we needed to pay for something during our trip to Kenya for the African Fintech Summit.
Barakat Olatinwo, head of Growth at Lazerpay, reported:
“We couldn’t pay with our Nigerian debit cards because of the international payment restrictions.
Whenever we needed to buy anything, we had to send dollars to a friend who had a local account. He, in turn, sent Kenyan shillings to the vendors on our behalf. It was very stressful.”
Business owners lose out on sales as a result of these international payment restrictions. Situations like these are very commonplace, especially on the African continent. However, cross-border, digital currencies solve this problem.
Crypto payment platforms allows business owners like you get paid easily in digital currencies like USDT, USDC, BUSD, and DAI – stablecoins pegged to valuable assets.
In this article, we’ll show you how your business can start accepting crypto payments without stress.
But first, let’s explain what crypto stablecoins are.
What are Crypto stablecoins?
A cryptocurrency is any digital currency maintained by a decentralised system.
It is monitored and organised by a peer-to-peer network called a blockchain, which also serves as a secure ledger of transactions, e.g. buying, selling, and transferring.
This blockchain technology frees cryptocurrency from the international payment restrictions affecting local currencies and also ensures its security.
Unlike popular cryptocurrencies known to crash overnight, stablecoins are a type of cryptocurrency whose value is tied to another asset with a stable price.
Examples of these assets are fiat currencies – dollars, pounds – , other cryptocurrencies, and precious metals. Their lack of volatility makes stablecoins a good choice of payment for business owners.
Now that you understand what cryptocurrencies are, here are the steps to accepting crypto payments.
3 Steps to accepting crypto payments as a business.
With over 300 million crypto users worldwide, cryptocurrency continues to grow. Many businesses worldwide now accept stablecoins as a payment method.
For example, Nguvu Health is a mental health company that accepts payments in stablecoins using Lazerpay’s API.
Another good example is Oreks Jerseys, a small business owner that receives stablecoins payments from his customers using the Lazerpay payment link.
Like Nguvu Health and Oreks Jerseys, here’s how you can start accepting crypto payments as a business owner:
1. Use a Manual Payment Option
To do this, you’ll need to generate a crypto wallet address for every sale you make on your website.
Afterward, you’ll send the customer instructions about the exact cryptocurrency you accept and how much money your customer should send.
You’ll then receive the tokens in your wallet and process the order as soon as you confirm the transaction.
However, there is a lot of manual work involved with this method.
You’ll need to handle your own invoicing and manually provide payment addresses to your crypto wallet every time. You will also have to provide customer support and handle other jobs that a payment processor can easily take care of.
Next, we’ll look at an option that offers you payment support. With this, you don’t have to worry about invoicing or if your customers are getting the proper care.
2. Integrate Application Programming Interface (APIs)
Integrating a crypto payment API into your online checkout automates your payment problem.
API integrations are used to install software that businesses find too technical to build.
Developing a crypto payment platform requires time and effort but using a payment link API, cuts out that time and effort.
For example, you can integrate the Lazerpay payment gateway into your online checkout system in 3 easy steps:
- Create an Account: Set up your business with an interactive onboarding process in less than 5 minutes.
- Select Payment Option: Select Lazerpay as your payment gateway. Add the payment button to your website or create a payment link to send to your customers.
- Integrate Checkout: Choose Lazerpay as a checkout option on your website with the easy-to-use API. Now you’re all set!
Even if you don’t have a website, you can also generate easy-to-share payment links from your dashboards, hereby automating a previously manual process.
3. Choose a Crypto Wallet.
A crypto wallet is like a normal purse, only it stores cryptocurrencies.
With a crypto wallet, you can keep and hold your income as long as you wish. You can also withdraw your money directly to your bank account.
Receiving payment with Lazerpay means you get access to up to 4 different wallets to store your income.
Whatever wallet you decide to store your tokens and digital assets in, the most crucial tip will be to be cautious of unknown links. Use 2-Factor Authentication or other security measures to keep looters away from your wallet.
For example, you always need an authentication code, a 6-digit code sent to your registered email address, to log in into your Lazerpay account.
Finally, let’s explore all of the benefits you get by accepting cryptocurrency as a payment option.
Benefits of accepting crypto payment as a business
Unlike their counterparts worldwide, young African entrepreneurs face several business limitations ranging from location to secure payments and scalability.
Cryptocurrency as a payment option helps to cut these limitations by offering:
- Low payment processing fees
The standard payment processing transaction fee for crypto payments is about 1%.
This makes it much more affordable than the average credit card payment processing fee of 3.5%.
Low payment processing fees give your business more leverage as it:
- Increases Your Sales: your customers are comfortable buying more from you because of the low transaction fee.
- Maximises Your Profit: the extra percentage you would have lost to the transaction fee in a fiat transaction can go to your profit.
According to an MCV Pilot Insight Report conducted in Kenya, stablecoins reduce the costs and frictions of sending and receiving cross-border micropayments.
It do this by leveraging easy-to-use mobile platforms, reducing cross-border transaction fees and offering a flat rate of 1% regardless of the transaction value.
2. Fast, easy and secure transactions
Have you ever had a payment withheld because of some frivolous policy?
We know how frustrating it is. Traditional payment options take an extended period to process. For example, international money transfers take 1-5 days.
Crypto payment options aren’t only faster, they are also way cheaper. The transaction takes only a few minutes even across countries. You also don’t have to worry about local currencies or foreign exchange rates.
A fast and easy payment enhances customer experience and satisfaction. And according to a report by Salesforce, a happy and satisfied customer is more likely to return for more business.
To make payments fast and easy for your customers, all you have to do is create a payment link. You’ll start accepting crypto stablecoins payments and get your proceeds settled in less than 5 minutes.
FAQs about online payment options for businesses.
Can I receive payment in crypto as a small business?
Yes, you can. Crypto payment platforms like Lazerpay have made receiving payment in crypto easy and hassle-free. All you need to do is create a free account and you can start receiving payments in crypto.
How can my customers buy crypto stablecoins to pay with?
They can buy stablecoins from direct trade with exchanges or Peer-2-Peer platforms like Binance.
Peer-2-Peer simply means trading between two people without an intermediary like banks or the government.
To exchange fiat currencies like the dollar or naira for crypto, they just have to connect their bank details to their Binance profile.
Their account will be debited and they’ll get the dollar equivalent of the cryptocurrency.
For example, to buy $500 worth of USDC stablecoins on Binance, they’ll send $500 to the seller. After which the seller releases the 500 USDC to their wallet.
What are the alternatives to PayPal for businesses?
Paypal is one of the most popular payment apps in the world. Yet, its services are limited in most regions due to stringent policies.
Most businesses, especially in Africa, can’t receive cross-border payments with Paypal.
Businesses seeking alternatives for PayPal should opt for crypto payment platforms instead.
Accept crypto payments from anywhere in the world with a payment solution like Lazerpay.
It is normal to feel this is unlike any payment option you’ve never seen before.
Change can be scary, but that isn’t enough reason to deny your business a quicker, cheaper and more secure payment method. Especially one that gives you access to build a global business.
Empower your business to accept payments globally, earn rewards and invest in crypto.
Create a free account to take your business global in 5 minutes now.