Can you accept cryptocurrency on your Shopify store?
This post was “all the rage” when cryptocurrencies where at their peak back in November / December of 2017 but just like the entire crypto market – the traffic for this post has declined rapidly.
However – as I am sure you know – the crypto craze seems to be back in full swing in 2019 so it’s time to give this guide a much-needed update.
If you’re here to learn how to set up cryptocurrencies payments on your Shopify store, you’re in luck because yes – you can do that (although you are going to need a third-party app).
There are also a few pros and cons which I’d like to address with is but first; let’s get to the topic at hand.
4 Ways To Accept Cryptocurrencies On Shopify
The first thing you are going to need is to set up an account with a Shopify cryptocurrency payment gateway.
While I am sure there are now plenty of others, the four companies which I used are:
All the above links lead to their respective how-to guides that will show you what you need to do to integrate with Shopify but in a nutshell, they all involve first setting up an account, adding your crypto-wallets.
You also need to specify which coins & token you would like to accept.
When I had initially set up my Shopify to start accepting cryptocurrencies, I was using BitPay because I had found that they were the easiest to set up.
On the other hand, BitPay had the biggest range of coins you can accept; up to 150 different coins and tokens including the ever-popular Bitcoin, Ethereum, XRP, Litecoin, etc…
I should also note here that since BitPay does not handle any money and bank transfers, you do not need to upload KYC documents (and your life’s history).
This means you can not withdraw directly to your bank account (if fiat currencies are what you’d like to eventually be paid in) so you would have to transfer your coins to your chosen exchange and go through the process of withdrawal that way – or simply HODL on.
I suggest you read into each and every one of the companies linked above to find the one which is best for you, you can also see this great video to find out more how to set it up:
The Benefits of Accepting Crypto On Shopify
Now that you know how to set it all up, let me give you my take on what the benefits of accepting cryptocurrencies on your Shopify are.
Lower fees paid:
When you are transacting with the world through the internet, you would likely end up losing money and have to pay fees to be able to transfer and move funds.
For example; I am in Europe but all my businesses earn dollars so that alone creates a bit of confusion.
Also, PayPal does take a hefty fee for withdrawal as well.
Thankfully, there are typically fewer fees when transacting with crypto.
They are not fun, and if you get too many of them, you do risk getting your account temporarily frozen and thus you’re immediately out of business.
With cryptocurrencies – as I’m sure you know already – there are no chargebacks.
No compliance needed
Worried about having your bank knowing all the ins and outs of your business?
No problem – crypto solves that very well.
Value should increase
Since you here learning how to accept cryptocurrencies on Shopify, I am assuming you’re a believer in the tech and think it can go far.
The beauty of all of this is that what your customers pay you today, can one day be worth 100X or more – that is an exciting prospect and probably why you should go through the process of making crypto payments available on your store.
The Drawbacks To Keep In Mind When Accepting Crypto
Let’s now look at some drawbacks that will come from accepting cryptos.
Very Few People Will Pay With Crypto
As I said at the beginning of this post, very few people will actually pay with crypto.
Anyone who is left after the 2018 bloodbath is holding tightly to their coins so don’t expect much coming in – unless your business is in the cryptocurrency niche itself.
What I’m trying to say here is that I definitely would not make it a crypto-only store – if I were you.
TIP: You may want to incentive people to pay with crypto by offering a discount on their item if they pay with your favourite coins. As discussed above, the value in the future should eventually be much higher than the 15-20% discount you “lose” today.
These Are Still Shopify Fees To Be Paid
Shopify will still get their cut – don’t forget about that.
On every transaction you do, Shopify gets a cut of the revenue (rates depend on which Shopify plan you’re on) so don’t count on that going away by using cryptocurrencies.
The Value Of Your Coins Can Decrease
Not to be fud-y, but always remember that the value of these coins can still go down – this is a crazy, new and volatile market and everything is possible.
Thank you very much for reading and I hope you enjoyed this quick post.
If you have any questions on the this, be sure to let me know – I would love to help you get started.
If you do not yet have a Shopify store, click through this link to be taken to the Shopify page where you can get started with your store with a free 14-day trial.
I’ll leave you to it.