6 Ways to Receive Bitcoin Payments - A Comprehensive Guide

Salomon Kisters

Feb 15, 2023

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Bitcoin and cryptocurrency payments are being accepted at various online shopping centers and institutions. However, there is still a general lack of clarity related to the payment methods available for Bitcoin.

There are several ways to receive these payments, including:

• Bitcoin Wallet: The most common way to receive Bitcoin is through a Bitcoin wallet, which can be a software, mobile, or hardware wallet.
• Bitcoin Address: Each wallet has a unique Bitcoin address, which can be shared with the sender to receive Bitcoins.
• QR Code: Most wallets also have the option to generate a QR code for the Bitcoin address, making it easy for the sender to scan and send the payment.
• Bitcoin Payment Processor: Websites and online merchants can also use a Bitcoin payment processor, such as BitPay or Coinbase, to accept payments on their behalf.
• Bitcoin ATMs: Physical locations, known as Bitcoin ATMs, allow people to buy and sell Bitcoin for cash.
• P2P Transactions: People can also perform peer-to-peer transactions by sharing their Bitcoin address to receive Bitcoin from other users.

Let’s take a deeper look into the different ways to receive Bitcoin payments, and also look at reasons why one should consider accepting Bitcoin as payment instead of traditional means.

Ways to Receive Online Payments

Before we delve deeper, we would like to take a general look at the different options available when it comes to online payments:

• Credit Card Payments: This is one of the most popular methods of online payments today. With credit card payments, customers enter their card information directly into the merchant’s secure payment gateway, which safely transmits the information to the card issuer. The card issuer then processes the payment and deposits the funds into the merchant’s account.
• Debit Card Payments: These are similar to credit card payments, except that the funds are drawn directly from the customer’s checking account instead of a credit card. The process of entering the card information and payment processing is nearly the same.
• PayPal: PayPal is an online payment service that allows customers to make payments directly from their PayPal accounts. Customers can link their bank accounts, debit cards, and credit cards to their PayPal accounts, and then use the service to make payments. It also offers merchants the ability to accept payments from customers through PayPal’s website.
• Apple Pay/Google Pay: These are mobile payment and digital wallet services. Customers can link their debit and credit cards to their devices and then use them to make payments in-store or online. They also offer the ability to accept payments from customers through the Apple Pay/Google Pay app.
• ACH Payments: ACH payments are automated payments made through the Automated Clearing House network. ACH payments are typically used for recurring payments, such as monthly subscriptions and utility bills. Customers can enter their bank account information into the merchant’s payment gateway, and the payment will then be processed and funds deposited into the merchant’s account.
• Bitcoin: Customers can purchase Bitcoin from various online exchanges, and then use their Bitcoin to make payments. Merchants can accept Bitcoin payments by setting up a digital wallet, which allows customers to directly transfer Bitcoin from their wallets to the merchant’s wallet.

Reasons to Accept Bitcoin as Payment

With so many options available, is it really prudent to go for Bitcoin? The short answer is yes. There are a lot of reasons that make Bitcoin the better online payment solution over traditional payment methods, which we explore next.

• Low Transaction Fees: One of the main benefits of using Bitcoin for payment purposes is its low transaction fees. Compared to conventional payment methods, Bitcoin transactions are often substantially cheaper, making it a great payment option for businesses and individuals alike. Additionally, Bitcoin payments can be sent and received almost instantly, so users don’t have to worry about long wait times for payments to process.
• Security: Bitcoin is a secure payment option for businesses as it uses blockchain technology to store and process payments. As a result, the risk of fraud is much lower than with other payment methods, and users can be confident that their payments are being sent and received securely.
• Global Reach: With Bitcoin, businesses can accept payments from customers all around the world. This makes it a great option for online businesses that wish to expand their customer base and increase their revenue potential.
• Easy to Use: Bitcoin is extremely easy to use, and businesses don’t need to worry about setting up complex payment systems. All they need to do is provide customers with a Bitcoin address and they can start accepting payments.
• Anonymity: Bitcoin payments are anonymous, so customers don’t need to share their personal information with businesses. This can help to protect their privacy and assures them that their payments are secure.

Bitcoin Payment Providers

Now that we’ve explored the reasons why Bitcoin and other cryptocurrencies are actually the better solution, let’s take a closer look at some service providers for Bitcoin.

• Coinbase Commerce: This is a service that allows merchants to accept cryptocurrency payments directly into their own digital wallets. It supports Bitcoin, Ethereum, Litecoin, and Bitcoin Cash payments and works with a variety of payment processing systems, including Shopify and WooCommerce. Merchants can also access Coinbase Commerce’s API to build custom integrations for their own websites.
• BitPay: BitPay is a payment processor that allows merchants to accept Bitcoin and Bitcoin Cash payments directly into their own wallets. It supports payments from customers in over 200 countries and also provides an invoicing system, along with a wide range of APIs that allow merchants to create custom integrations for their websites.
• CoinPayments: This is a payment gateway that allows merchants to accept payments in over 1,300 different cryptocurrencies. Supporting payments from customers in over 180 countries it also offers a wide range of features such as escrow services and a built-in wallet.
• Utrust: Utrust is a payment processor that allows merchants to accept payments in Bitcoin, Ethereum, and other cryptocurrencies. It also supports payments from customers in over 200 countries, and provides several useful features such as fraud protection and instant conversion of payments into fiat currencies.
• CoinGate: CoinGate is a payment processor that enables merchants to accept payments in Bitcoin, Ethereum, and 50+ other cryptocurrencies. It supports payments from customers in over 150 countries and also provides an invoicing system. It also comes with a range of APIs that allow custom integrations for websites.

How to Set Up Your Website

Before you get into actually using Bitcoin payments, you need to understand how you can set up your website. The steps are outlined below:

• Set up a Bitcoin Wallet: To accept payments in Bitcoin, you need to have a Bitcoin wallet. A Bitcoin wallet is an application that stores and manages your Bitcoin. You can use a web-based wallet, a software wallet, or a hardware wallet, depending on your needs and preferences.
• Select a Payment Processor: Popular options include Bitpay, Coinpayments, Blockonomics, and Coinbase Commerce, the details for some of which are already given above.
• Choose a Payment Method: You could accept payments directly using a payment button or QR code or you could use an invoice system.
• Integrate the Payment Processor: The easiest way to integrate a payment processor is to use a plugin or extension. Some of these include WooCommerce and Easy Digital Downloads.
• Test the Setup: Once you’ve integrated the payment processor, test the setup to make sure everything is working correctly.

Once everything is set up and ready, you can promote your Bitcoin payments on your website and social media channels next.

Conclusion

Cryptocurrencies such as Bitcoin or Ethereum offer an alternative to traditional methods of payment, as well as a more secure and private way to transact. Bitcoin transactions are fast, secure, and easy to track, and the decentralized nature of the network makes it difficult for fraud or censorship to take place.

Additionally, the use of Bitcoin and other cryptocurrencies can help to reduce the costs associated with traditional payment methods, such as bank fees and transaction costs, as well as facilitate greater economic inclusion in the global economy.

As the world becomes increasingly interconnected, the use of cryptocurrencies can provide a more efficient way to move money around the world without having to rely on traditional financial institutions, thus, providing greater flexibility and access to financial services for individuals in developing countries.

Furthermore, cryptocurrencies also offer the potential to help users protect their assets and investments, as their decentralized nature makes them difficult to manipulate or hack.

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