What are the main mistakes merchants make when introducing crypto-payments on their platforms?

21/11/2023

As of 2023, online businesses are increasingly accepting cryptocurrency payments as a means of payment for goods and services. Cryptocurrency payment gateways serve as a bridge that allows businesses to accept digital currencies as payment. These gateways offer advanced security protocols, expedited transaction times, and low fees.

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Table 1: Reasons why merchants are introducing crypto payments on their platforms (based on a survey of over 1,000 merchants conducted by TripleA in 2023)

Reason	Percentage of merchants
Reach a global customer base	45%
Reduce transaction fees	38%
Offer faster settlement times	32%
Attract new customers	27%
Improve brand image	23%
Support innovation	18%

However, it is worth noting that when introducing crypto payments on their platforms, merchants usually make the same mistakes. These mistakes can potentially hinder success in attracting and retaining customers who want to pay with cryptocurrencies. Some of the main mistakes include:

Limited Cryptocurrency Options: Offering only one or a few cryptocurrency payment options can limit your potential customer base. Merchants should aim to support a variety of popular cryptocurrencies to accommodate a broader range of customers.
Inadequate Security Measures: Failing to implement robust security measures can put both the business and its customers at risk. Merchants should invest in top-notch cybersecurity to protect against hacks and fraud.
Lack of Education: Not educating customers about how to make crypto payments or the benefits of using cryptocurrencies can create confusion and reduce adoption. Merchants should provide clear and accessible information on how to use crypto for payments.
Price Volatility Management: Many cryptocurrencies are highly volatile, which can be challenging for merchants to manage. Failing to address this issue may result in financial losses. Merchants should consider using payment processors that can instantly convert cryptocurrency payments into fiat currency to mitigate price volatility risks.
Ignoring Legal and Regulatory Compliance: Not adhering to legal and regulatory requirements, such and Anti-Money Laundering (AML) regulations, can result in legal trouble. Merchants should be aware of the rules and regulations surrounding cryptocurrency payments in their jurisdiction and ensure they comply.
Poor User Experience: Making the payment process overly complicated or time-consuming can frustrate customers and discourage them from using cryptocurrency. Merchants should strive to provide a seamless and user-friendly payment experience.
Failure to Stay Informed: The cryptocurrency space is rapidly evolving, with new coins and technologies emerging regularly. Not staying informed about the latest developments in the crypto world can lead to missed opportunities and outdated payment options.
Not Monitoring Transaction Fees: Cryptocurrency transactions can come with varying fees. Merchants should keep an eye on these fees and assess whether they are cost-effective for their business, especially for smaller transactions.
Inadequate Customer Support: Failing to offer support for customers who encounter issues with cryptocurrency payments can lead to frustration and lost business. Merchants should have a system in place to assist customers with any payment-related problems.
Overlooking Tax Implications: Many jurisdictions tax cryptocurrency transactions. Merchants need to account for these taxes and comply with relevant tax laws, which may vary by location.

Table 2: Representation of the relative severity of business crypto-payment problem, with a scale from 1 (low severity) to 5 (high severity) in 2022 (data from open web sources)

Problem	Severity (on a scale of 1 to 5)
Market Volatility	5
Regulatory Uncertainty	4
Security Concerns	4
Technical Complexity	4
Conversion and Fees	4
Taxation and Reporting	4
Lack of Adoption	3
Customer Education	3
Reconciliation Issues	3

To successfully introduce crypto-payments and attract and retain crypto-paying customers, merchants should carefully plan and strategize their approach, addressing these potential pitfalls to create a positive and secure payment experience. A smart decision in terms of time, quality and cost is to implement crypto payments using a crypto payment gateway.

Here are some tips for merchants who are considering introducing crypto-payments on their platforms:

Start small. Don't start accepting all cryptocurrencies right away. Start with a few popular currencies, such as Bitcoin and Ethereum. As you gain more experience, you can start accepting more currencies. For example, PassimPay offers support for more than 45 of the most popular crypto assets.
Educate your staff and customers. Many people are still unfamiliar with crypto, so it's important to educate them about how they work and the benefits of using them. You can do this through blog posts, articles, social media posts, email marketing, FAQ section on your web site.
Partner with a reputable crypto-payment gateway. A responsible crypto-payment processor, like PassimPay, not only solves technical issues related to the implementation of crypto-payments, but also provides full technical and consulting support to merchants. Contact PassimPay and ask all your questions about the possibilities of cryptocurrencies for online businesses of any size and field of activity.
Have a backup plan. In case of any problems with your crypto-payment processor or your crypto-payment gateway, it's important to have a backup plan in place. This could involve accepting traditional payment methods, such as credit cards and debit cards.

By following these tips, merchants can avoid the most common mistakes and ensure that their customers have a positive experience when paying with crypto.

Table 3: Percentage of merchants accepting crypto payments by region in 2023 (data from open web sources)