Blockchain, NFTs, Web 3.0 – these are buzzwords you'll hear flying around when discussing the future of eCommerce. Cryptocurrency is changing the online marketplace as we know it, and like it or not, it's here to stay. It might be time to consider accepting crypto payments in your store to stay ahead of the curve.
How does cryptocurrency work? Should you incorporate it in your online store? What are the drawbacks? In this BigCommerce crypto payments guide, we answer these questions and more.
- mers without any intermediary facilitating the transactions. These online merchants set up digital wallets for users, allowing them to deposit cryptocurrency assets, which they can use to buy products directly from the store.
- Payments made through third-party intermediaries: In this setup, online merchants rely on third-party payment providers such as BitPay and CoinPayments to facilitate cryptocurrency transactions. Like other fiat-based payment gateways, these crypto providers allow customers to use their platforms to purchase products from online stores.
See also: eCommerce Providers That Accept Cryptocurrency Payments
Benefits of Incorporating Cryptocurrency in Your BigCommerce Store
So far, we've looked at the basics of cryptocurrency and its various applications in the eCommerce industry. The next logical question is – Should you start accepting BigCommerce crypto payments in your online store? Here are some potential advantages you might be losing out on.
1. Access to New Markets
Cryptocurrency is synonymous with being tech-savvy. If you accept crypto on BigCommerce, you open up your business to target a new demographic of forward-thinking customers who transact using crypto.
Cryptocurrency is decentralized and accessible worldwide. Offering crypto as a form of payment allows consumers worldwide to purchase from your online business and pay for products quickly and conveniently. Without crypto, your business is limited to customers in specific countries served by your payment providers.
If you want to expand your business to cater to a global market, cryptocurrency is the way to do it.
2. Low Transaction Fees
Fiat-based payment providers like PayPal, Square, and Stripe are notorious for their exorbitant transaction fees. Square, for instance, typically charges online businesses up to 5% on every transaction. While this might not seem like much, those numbers can rack up as your business scales and you start seeing higher sales volumes.
Cryptocurrency provides a nice change of pace. Most don't charge businesses or consumers any transaction fees; if they do, they're typically around 1%. Digital currency is an excellent option for online business owners looking to minimize their transaction costs and maximize their bottom line.
3. Consumer Anonymity
The ever-present threat of hackers stealing sensitive customer information, such as credit card numbers, banking data, and personally identifiable information, is why more shoppers opt for safer online transactions. Cryptocurrency is one such way, as it allows consumers to shop online without providing their personal information, a requisite for all fiat payment providers.
Bitcoin, Ethereum, Litecoin, and other cryptocurrencies are pseudonymous (as opposed to being 100% anonymous). They allow users to use a pseudo-identity to hide their real one when making online purchases. They are allocated a wallet address, which they provide when paying for goods and services.
Rather than an individual going by their actual name, “Jane Doe,” their name is replaced with the digits in their wallet address. A wallet is a medium for holding crypto.
It is worth noting that with some sleuthing, it is possible to trace crypto assets back to their owner using their wallet address and the blockchain itself. However, it requires quite a bit of tech expertise. That said, given how secure crypto transactions are, you'll likely never have to resort to such measures once a customer makes a store purchase from you.
4. Reduced Fraudulent Chargebacks
A chargeback is when a customer who has made a store purchase raises a dispute with the payment provider, seeking to have the transaction reversed. Depending on the outcome of the payment provider’s investigation, the customer may or may not get reimbursed.
Now, there’s nothing inherently wrong with chargebacks, as they are one of several forms of consumer protection. However, unscrupulous individuals often misuse it to perpetrate fraud. Here’s how.
- A customer’s credit card details are stolen by a bad actor who then uses it to make a legitimate purchase from your store.
- You ship the item(s) to the listed address, and the fraudster receives the said item(s).
- The legitimate credit card owner notices the unauthorized transaction and proceeds to contact their payment provider, claiming never to have received the item (which they genuinely didn’t).
- The payment provider reviews the claim, temporarily credits the disputed amount to the customer's account, and debits it from yours while conducting their investigations.
- The payment provider notifies you of the chargeback and requests evidence to counter the customer’s allegations. Evidence may include documentation related to transaction records, correspondence, shipping details, and anything relevant to proving your claim.
- Your evidence reveals that the disputing customer never received the items, as they were shipped to an address that's not theirs.
- The payment provider reviews the information provided and “rules” in the customer’s favor upholding the chargeback. This action, in turn, costs your business money in the form of chargeback fees and other penalties, in addition to the loss of the items you shipped.
Cryptocurrency eliminates any chance of fraudulent chargebacks since the very nature of the blockchain makes it impossible to reverse transactions. Once a customer pays for a product by transferring crypto coins from their wallet to yours, it seals the deal. They cannot rescind or refund the money, significantly reducing the chances of fraudulent chargebacks and transaction reversals.
5. More Security
The only way to reverse a transaction using crypto as a payment medium is if both the seller and the buyer agree. Remember, crypto is decentralized. There's no intermediary between the buyer and the seller in the form of a bank or any other financial institution.
Once a customer pays for a product using cryptocurrency, no third party can reverse the payment. You, therefore, don't have to worry about money being withdrawn from your crypto wallet without your express permission.
Additionally, blockchain, the framework on which cryptocurrency operates, is highly secure. It is incorruptible by hackers or any other bad actors. Even if they somehow managed to corrupt some data, several replicas of the original exist and are stored in multiple blocks.
The same principle applies if hackers want to steal customer information, which is enough to bring any business to its knees. The blockchain only supports trusted identities, all of which have been verified by several trusted parties. It makes it impossible for malicious individuals to access sensitive consumer data. That's why storing sensitive customer and business-critical data in blockchain-backed technology is safer.
6. Faster Transactions
When customers make payments via traditional fiat-based payment providers, merchants often have to wait a specific period for the amounts to be processed and their accounts funded. This period can be anywhere from 24 to 72 hours for banks and credit card providers.
With cryptocurrency, online store owners don’t have to wait to receive the funds. Once a buyer makes a purchase from your BigCommerce store and the transaction goes through, the crypto coins will be immediately posted to your wallet.
The decentralized nature of the blockchain means you don’t lose valuable time for an intermediary to validate the transaction before you can finally get the funds credited to your account. Crypto assets are transferred to you in real time. Faster transactions mean a quicker return on investment (ROI).
7. Improved User Experience
The ultimate goal of user experience (UX) is to give the consumer an efficient, intuitive, and relevant shopping experience. Your goal as a business owner is to provide your customers with a UX that fulfills their needs. After all, positive user experiences are the driving force behind brand loyalty.
Offering customers cryptocurrency as a form of payment adds an extra layer of flexibility that will leave a lasting impression. It guarantees that your business caters to every kind of consumer, including those who prefer to use crypto as their primary mode of payment for online transactions. The results will be evident in your sales conversion rates.
8. Enhanced Brand Identity
Many brands have already jumped on the crypto bandwagon. Many others have already found unique ways to use non-fungible tokens (NFTs) in eCommerce. From Adidas’ Into the Metaverse to Kobe Bryant’s KB24 Collection, crypto represents an era of creativity and forward-thinking.
Consumers perceive brands that accept crypto payments as cutting-edge and next-generation. Your brand gets to be at the forefront of bridging the gap between the real and virtual world as the metaverse takes over.
It’s less about the quantity of demand you have for cryptocurrency payments from your customer base. It’s more about demonstrating your commitment to expanding your reach, staying relevant, and catering to all your customers. That’s what will make your brand stand out.
See also: eCommerce Trends to Watch
Potential Risks of Cryptocurrency Integration in Your Store
As great as accepting cryptocurrency payments might be, it does have a few drawbacks you need to be wary of.
1. Price Volatility
If there's one thing crypto is known for, it's that it tends to fluctuate widely. Fiat currency is relatively stable in comparison, so you don’t typically see its value changing much over time.
On the flip side, since cryptocurrency isn’t backed by fiat currencies such as the USD, GBP, and EUR, its value might skyrocket and drop quickly – even in a week. You need to keep this unpredictability in mind if you decide to start accepting customer payments in crypto.
2. Environmental Concerns
Most people fail to consider just how much energy is used when mining crypto. According to the Digiconomist, the amount of electrical energy required to mine Bitcoin in a year is equivalent to Ukraine's annual power consumption. That’s right – the same amount of electricity needed to power an entire country for a year.
Keep in mind that this is only one of several thousand cryptocurrencies.
Crypto mining is, without a doubt, detrimental to the environment, particularly where climate change matters are concerned. In the global quest for sustainability, several governments are implementing regulations to curb the negative repercussions of mining.
3. Consumer Protection Gaps
Mainstream payment providers like banks and credit card companies have robust policies to protect consumers, especially from fraudulent transactions.
Unfortunately, the same consumer protections don’t exist for crypto payments. Customers and merchants transacting in Bitcoin, Ethereum, Litecoin, or any other cryptocurrency have no remedy in case of fraud. You’re essentially on your own.
4. Cash Flow Constraints
While cryptocurrency has undoubtedly gained momentum in the last few years, it still has a long way to go before the larger public fully recognizes it as having “real” value. For the most part, online store owners that accept crypto on BigCommerce typically keep them as digital assets. However, you might run into issues if you need immediate cash for business expenditures.
The time it takes to convert cryptocurrency into fiat varies widely depending on the exchange. It can take anywhere from a few hours to several business days.
How to Accept Cryptocurrency Payments on Your BigCommerce Store
BigCommerce supports a wide range of crypto payment solutions. Some are integrated payment gateways (such as BitPay) that you can enable from your control panel. Others are configured as apps (such as CoinPayments) that you can set up to start accepting cryptocurrency payments.
For purposes of this guide, we’ll outline the setup process for both options so you can start accepting payments on your BigCommerce store.
BitPay Setup
- Go to the official BitPay website, create a merchant account, and log in to your dashboard.
- Create an API Token and check to see that the checkbox labeled “Required Authentication” is disabled.
- In the "Token Label" field, edit the name to reflect the token's purpose, such as "BigCommerce.”
- Log in to your BigCommerce control panel, navigate to “Online Payment Methods,” and click “BitPay.”
- In the BitPay Settings tab that opens up, input the API Token generated in step 2 and set your preferences.
- Click "Save" to complete the setup.
CoinPayments Setup
- Go to the official CoinPayments website, create an account, and log in to your dashboard.
- Navigate to “Account” > “Account Settings” > “Basic Settings” > “Public Info” > “Login & Security” > “Merchant Settings” and enter any secure code of your choice in the “IPN Secret” field. You will use this IPN Secret passcode to authenticate your BigCommerce store transactions.
- Go to the “Basic Settings” tab and copy “Your Merchant ID” as is.
- Next, go to BigCommerce’s app marketplace, search for CoinPayments, click on it, and click “Get This App.”
- Log in to your BigCommerce store dashboard and then click “Install.”
- Once installation is complete, input the “Merchant ID” and “IPN Secret” passcode you generated in steps 2 and 3, and click "Save."
- On the side panel, go to “Settings” > “Store Setup” > “Payments” and select your default currency.
- Next, navigate to “Settings” > “Payment” and scroll down to view “Additional providers.” Expand “Offline Payment Methods,” select “Money Order,” and click “Set up.”
- Complete the form to customize your payment preferences on the Money Order Settings Page.
- Click “Save” to start accepting cryptocurrency payments.
What Crypto Payment Gateways Are Best for Your BigCommerce Store?
As mentioned before, BigCommerce supports a wide range of crypto payment solutions. However, the best BigCommerce crypto payment gateways are:
BitPay
- Supports all major cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin.
- Supports 100+ crypto wallets.
- Accessible in 200+ countries and territories.
- Settles in USD and other currencies in the next business day.
- Low transaction processing fees starting at 1%.
CoinPayments
- Automatic conversion of incoming cryptocurrency payments.
- Settles crypto transactions within minutes.
- Instant payment forwarding to any wallet address.
- Zero risk of chargebacks and transmission of sensitive customer data.
- Low transaction processing fees start at 0.5%.
See also: Is Your Wix Store Crypto-Ready?
Final Thoughts
There you have it. Everything you need to know about setting up your online business to start accepting BigCommerce crypto payments.
The bottom line is this: Cryptocurrency is becoming increasingly popular by the day, and more consumers are embracing crypto as their primary mode of payment for online purchases. As a business owner, take the time to weigh the pros and cons of integrating crypto payments in your BigCommerce store, as we’ve discussed here, and make an informed decision that serves the best interests of your business and customers.
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FAQs
Does BigCommerce accept crypto?
Merchants can accept crypto on BigCommerce directly from customers without going through an intermediary. Alternatively, you can opt for a payment provider to receive customer payments in cryptocurrency and pay you in fiat currency (USD, GBP, EUR, etc.).
How do you integrate crypto payments?
You can integrate BigCommerce crypto in your online store in one of two ways. On the one hand, you can opt for the integrated payment gateways (such as BitPay) already built into the platform and enable them from your control panel. On the other hand, you can download a supported payment processing app (such as CoinPayments) from the app marketplace and configure it to start accepting cryptocurrency payments.
What is the best crypto eCommerce platform?
While BigCommerce supports a wide range of crypto payment solutions, the best crypto payment gateways for BigCommerce are, no doubt, BitPay and CoinPayments.
April 25, 2024 
