AAs cryptocurrency grows increasingly popular, more Businesses are offering Cryptocurrency as a payment option. Accepting Crypto not only opens businesses up to a new audience, it can be less expensive, and less risky compared to tradition payment options like credit cards.

Navigating Price Volatility: The Primary Concern for Business Owners

This guide will show you how to accept cryptocurrency for you business – including the key considerations you should keep in mind when looking for a payment processor.

Business owners primary concern in accepting crypto relates to PRICIE VOLATILITY.

Crypto is a new asset class and with that inherently comes price fluctuations.

Most crypto processors allow you the ability to transact in Crypto, but they don’t solve the price volatility concern.

Understanding Crypto Payment Processor Transaction Models

The price volatility concern can be solved by working with a Crypto Payment Processor “Processor” who works as an intermediary and converts the crypto payment into fiat (ex: US Dollars) on your behalf.

  • Step 1: A customer places a $125 order with their chosen cryptocurrency with one of Boosts clients

  • Step 2: Boost accepts the cryptocurrency and immediately converts it into US Dollars (USD)

  • Step 3: The full $125, less the 2% processing fees, is automatically deposited into the business owners checking account

This process is nearly identical to what most businesses experience with their credit card transaction

In effect, a customer gives you an alternative for US Dollars (Credit Card or Crypto) and USD is automatically deposited directly into your checking account

Compare this to what other Crypto Processors do:

Convention Crypto Processors Model

  • Step 1: A customer would like to place a $105 order with their chosen cryptocurrency

  • Step 2: The processor forces the customer to purchase the cryptocurrency in designated purchases sizes or “blocks” (ex: $100, $300, $500)

  • Step 3: The block order must cover the entire $ amount of the order and for the customers first purchase, they must provide their ID and other information pursuant to Know Your Customer rules

  • Step 4: Upon completion, the customer places the order with the business. The $105 worth of cryptocurrency (not USD) less the processors fees cryptocurrency is transferred to the businesses designated Crypto Checking Account with the processor.

  • Step 5: Any remaining cryptocurrency purchases in excess of the customers original order size sits on the customers newly created account. They can convert it to USD, but this is another step and often includes additional transaction fees

  • Step 6: If the business owner wants to convert the cryptocurrency in their account to USD it requires them to swap it out and then transfer the funds manually into their primary business checking account

The business is subject to any and all crypto price fluctuations that may occur from the time that they accept the cryptocurrency from the order to the time the convert the crypto to USD

The net result for your bottom line is significant.

Not only can the wrong method cost you more in both time and money, but it add significant friction to the order process for your customers

Considering the Full Spectrum of Impacts

The true cost of a payment processor is measured not only in the fees levied but also in the value of time spent managing transactions and the potential impact on your business’s cash flow due to uneccessary manual intervention

Further, adding friction to customers checkout process is to be avoided at all costs.

Accepting Crypto payments can absolutely boost up your business in 2024 and beyond.

As with any strategic business decision make sure you know not only the fees but the overview of entire transactions process