Each Bitcoin price increase brings ter a fresh wave of merchants. Bitcoin’s leap to $1,100 ter 2013 shoved merchants like Microsoft, NewEgg, TigerDirect, and Dell to accept Bitcoin payments online.
Accepting Bitcoin payments makes sense for any business. This guide will explain the benefits of accepting Bitcoin and how to integrate it with your store or business.
What are the Benefits for Merchants?
Most Bitcoin payment processors charge 1% or less vanaf transaction. Most merchants pay when Two.9% + 30 vanaf transaction when accepting PayPal and credit cards. Better yet, accepting Bitcoin without converting bitcoins to local currency is downright free.
Unlike credit card payments, which take weeks to accomplish, Bitcoin transactions can be accepted and verified spil finish ter minutes. Bitcoin payment processors take on all risk te the case of a failed payment.
There are no chargebacks with Bitcoin. Any confirmed transaction is protected by the network and can’t be reversed. Recall: Bitcoin is digital contant.
No Exchange Rate Risk
Most Bitcoin payment processors assume all exchange rate risk on the Bitcoin price.
Businesses can accept bitcoins from any country te the world, with no risk of fraud or chargebacks.
Bitcoin users love support Bitcoin-accepting merchants. Get the word out that your business accepts Bitcoin, and you’ll get access to a fresh wave of customers.
Features to Look for ter a Bitcoin Merchant Processor
- Can I get a unique Bitcoin address for each transaction?
- How is the exchange rate calculated?
- How swift are payments approved?
- What is my exchange rate risk?
- How do I receive the funds?
- Are there any fees involved?
- How can I see a listing of my sales?
Bitcoin Payment Processors
Let People Know!
Once your business starts accepting Bitcoin payments, be sure to get the word out!
Online stores should add an picture to the store footer so people know that Bitcoin payments are accepted. You can use the pics below, or a more clean vormgeving like this:
If you operate a Brick and mortar store, add a sticker to your store window. The most basic and common sticker is provided below (click here for higher resolution):
You can buy “Bitcoin accepted here” stickers at bitstickers.netwerken
Point-of-Sale (POS) Transactions
Te retail stores, bitcoins can be used side-by-side with local currency and credit cards. The merchant will need a point-of-sale device or application to accept payments. BitPay’s Bitcoin Checkout apps for iOS and Android make it effortless to accept Bitcoin payments from a mobile phone or tablet.
Another implement many people like to buy is a Bitcoin debit card which enables people to stream a debit card with funds via bitcoins.
Bitcoin For Banks
TRANSCRIPT: Bitcoin For Banks
INTERVIEWER: Sonny is a very well-seasoned businessman te the payment industry. He has overheen 15 years te the payment industry. He used to be a former VP for Jumio and he now is the CCO, the Chief Commercial Officer of BitPay, which is the fattest payment processor – bitcoin payment processor te the world.
So he’s te charge of managing wholesales and business development at the company. So thank you, Sonny, for taking the time to come and visit us and share your practice with us.
MR. SINGH: Good. Thank you, Diego. Very first off, forgive mij for my American accent. So my name is Sonny Singh. I am the Chief Commercial Officer for BitPay. And the very first think I’d like to say is that I am not a PhD, a scientist, a programmer. So all the stuff thesis guys talked about earlier, I understood maybe a petite part of that. What I am going to talk about is how regular merchants and businesses around the world are actually using bitcoin and blockchain technology. So I’m going to speak ter hopefully words wij can all understand and — okay, let’s attempt this one again now.
So again, I’m not a PhD or a scientist. I’m going to attempt to bring, you know, my job is to bring bitcoin and blockchain technology to the masses, and you know, and make a business case for businesses and enterprises around the world to use it.
So BitPay is the largest provider of cluster of bitcoin ter the world. Think of us like Very first Gegevens. So wij help merchants and businesses all overheen the world enable bitcoin and blockchain technologies.
So I always like to commence off with this slide about, zuigeling of, the landscape of the bitcoin community. You can see the rapid growth of the VC investment ter the bitcoin space. And the most significant number is it’s grown to 3X this year from last year. And so having bot based ter Silicon Valley for 15 years and watching a lotsbestemming of trends and companies get funding back from Google, Facebook and all of that, wij’re observing the same kleuter of ecosystem being built.
And this $900 million, what that means is, that means people from Google, Facebook, the smartest scientists and engineers and entrepreneurs ter the world are leading those good companies to join the bitcoin ecosystem. That means more jobs are being created. Silicon Valley is, you know, rapid predominantly becoming a bitcoin hub, spil well spil, you know, cities like London. I think there’s a excellent chance for Buenos Aires and Paolo, other cities te the Latin America to indeed get — become a bitcoin Latin American hub to help get jobs out here, create that financial hub that the bitcoin community needs for Latin America. And with this type of venture capital money that’s become 3X te the last year, it’s demonstrating now to become overduidelijk now that this is actually happening across the world.
BitPay actually, wij have raised $30 million last year. That wasgoed our Series A round. At that time, it wasgoed the largest everzwijn bitcoin fundraising round. Wij look at bitcoin spil truly a global digital currency. So our investors ranged from Index Ventures, which is the largest European VC rock hard, to Richard Branson, very well-known obviously ter Europe spil well, to America, wij raised from Founders Fund, which is Peter Thiel, the founder of PayPal, spil well spil Jim Robinson, the former CEO of American Express. And ter Asia, wij raised money from Li Ka–shing, who is the wealthiest person te Asia, spil well spil Jerry Yang, the former founder of Yahoo.
And those are very significant, our investors, because it helps keep credibility te working with large corporations like Microsoft and large banking partnerships that wij need to create all via the world. And since that time, wij’ve bot passed. Many other bitcoin companies have raised much fatter rounds. So it shows how the industry, just ter the last 12 months, has switched so much.
So when I joined BitPay 12 months ago, the industry wasgoed still, kleuter of, kicking off out, attempting to find its, you know, footing so to speak. And then wij raised the big round and then since that time, you’ve seen companies like Goldman Sachs invest ter bitcoin now. Cisco, Qualcomm, NTT DoCoMo, Rakuten, IDG out of China. So you’re watching strategic investment happening from all overheen the world now, where 12 months ago that wasn’t even thought of. And the investors ter Silicon Valley are all the top venture firms like Andreessen Horowitz, Founders Fund, Greylock Fucking partners, Benchmark, thesis are all the same investors that helped begin companies like Facebook, Google, Cisco and truly the backbone of the internet.
So where are wij at today now? You know, two years ago again, te this chart, bitcoin would not have bot on that. So it’s just displaying now how much of a traction bitcoin has gotten ter just the last two years actually. It’s truly come a long way and I imagine the next two years would be much higher actually. Everything seems to be happening ter exponential terms te the bitcoin community. So it’s very arousing to see that growth and see what is happening, and I don’t even know 12 months from now where this is going to end up actually.
This chart represents the payments that are happening, the transactions that are happening every day. So the earlier speakers talked about how this is a public ledger, everything is documented ter the blockchain. That’s actually true. I recommend you guys go into www.blockchain.informatie. It’s a indeed cool webstek. I don’t truly understand a loterijlot of it, but you see transactions happening ter real-time.
So you actually see all of the transactions being recorded with some real code or whatever is around it, but you can see it happening. It’s indeed interesting to look at. It goes back to the theory that bitcoin is not anonymous. So if you are attempting to do something illegal with bitcoin, it’s not a brainy thing to do actually. Everything is recorded te a public ledger for the surplus of the world to see.
So how are merchants and customers and global brands around the world actually using bitcoin and what can they use it for? You know, wij have a quote here from the former founder of PayPal, former CEO of PayPal, a big advocate of bitcoin, “People thought PayPal might be competitive to bitcoin.” There are open-arms with embracing this type of stuff actually.
My beloved quote is from Dell. So Dell has bot accepting bitcoin now for the last year almost. After one year, they talent this tweet, “There’s no reason for a merchant not to accept bitcoin anymore.” So 12 months ago, people like myself were at conferences speaking to merchants out there explaining why they need to accept bitcoin. 12 months zometeen, merchants like Dell, Overstock, Microsoft are actually speaking to merchants now explaining the value of why they are accepting bitcoin and the value they’re getting out of this, and why the other merchants te the crowd should be accepting bitcoin too. So wij’ve truly seen this ecosystem switched fairly dramatically.
So this noisy slide of all the different merchants is actually noisy on purpose, because to demonstrate all the different types of brands that are accepting bitcoin. There’s overheen a 100,000 merchants accepting bitcoin globally right now ranging from non–profits like Green Peace to the Fortune 100 companies like Microsoft and Dell, to puny, you know, restaurants around the world. Anyone who accepts credit cards who wants to attract fresh customers, bitcoin is a volmaakt use case and payment option for them.
Companies like BitPay, wij make it very seamless for a merchant to accept bitcoin. Our job, when wij go talk to the payment teams at, you know, Microsoft or Zynga or Newegg or whatever, they’re not fairly familiar with how bitcoin works. They’re just like everyone else ter the crowd. They’re hesitant how this truly works. And BitPay makes it very effortless for them to set up.
So why would a merchant want to accept bitcoin? This is actually – the very first is lower cost. So when you accept bitcoin – when you accept credit cards, spil you know, the merchant pays anywhere from 2% to 4% credit card transaction toverfee. With bitcoin, wij pretty much eliminated transaction fees. Wij’ve lowered this down to 1%. So for every transaction now that happens on the bitcoin ecosystem, let’s say with a merchant, they just pay 1% toverfee. So they are already saving 2% to 3% for each transaction. The superb thing about that, Dell actually did a $50,000 laptop order a duo of months ago. So with bitcoin, a $50,000 order, that’s very petite payments toverfee versus what it would have bot like with a credit card.
So next part, lower risk, so when Dell shipped that $50,000 order, it wasgoed just a very high-risk toegangsbewijs voorwerp. The odds of chargebacks are very high with that. With bitcoin, there are no chargebacks. So I actually mean that 100%. There are no chargebacks. The merchant can do refunds if they want, but it’s up to the merchant. So when someone makes – pays with a bitcoin transaction, it’s essentially like paying with specie. They now have the option. They now can ship out that goods and not have to worry about the consumer telling he wants his money back and getting money back and pursuing a Visa or how that works te the payment card network actually. The liability has shifted from the merchant to the consumer actually. So Dell has no problems shipping that $50,000 order and having to worry about charge backs or fraud.
The next reason why you might want to accept bitcoin is to sell globally. Overstock.com said it best when they went live accepting bitcoin. They essentially went live and opened themselves up to five billion shoppers around the world. There’s many shoppers around the world that might not have credit cards. How do they shop at Overstock.com now? Well, using bitcoin now, they can accept payments from anywhere ter the world, and since there’s no chargeback risk, they have no problems shipping goods anywhere ter the world because they’ve already got paid.
So truly superb use cases for the merchants, and then also a consumer privacy and consumer gegevens. So this is a fine reason why consumers like bitcoin. But the merchants also like it because they don’t hold any consumer private gegevens. They don’t hold their credit card number. There’s no PCI issues actually. So every day, you always read about ter the news, companies being hacked for their credit information and all that. Well, the merchants aren’t holding any consumer privacy gegevens surrounding credit cards for bitcoin transactions.
So also, for the consumers, you know, I’ve got my credit card and, you know, all the different internet sites now ter America, I’ve lost track of it now. My debit card is out there. My credit card is out there now. I now keep my bitcoin wallet for online digital purchases now. So every time I’m online now, I don’t like to use my credit card. I usually like to pay ter bitcoin actually because I don’t have to worry about my credit card number being left out somewhere and all that. And wij’re beginning to see that trend more often now overheen and overheen again.
But what is the indeed main reason why merchants indeed like bitcoin? Well, they want to acquire fresh customers. They want to increase fresh revenue. And with bitcoin, wij’re eyeing this fairly often and the fine thing about acquiring fresh bitcoin customers, thesis are your merchant’s beloved type of customers. They actually spend more. They come back more often and they refund less. I’m hearing this overheen and overheen again from all my merchants actually.
So one of our customers, Takeaway.com, their average order toegangsbewijs voorwerp is 2X with bitcoin than with U.S. dollars, and this is a food delivery service. Another customer, Destinia.com, this is a travel webpagina, again higher toegangsbewijs items with bitcoin versus travel – versus credit again. And again, Destinia spil travel it’s high risk too with chargebacks. So not only they’re saving more money te the transaction fees, they’re getting higher toegangsbewijs items.
One of our merchants is a $1 billion retailer and they went live a year ago, and here is, zuigeling of, some of the value they thought. So very first, the day of the launch, they get a loterijlot of marketing value, the bitcoin talks about this merchant being live, it’s, you know, a fine exposure for the merchant. They got overheen 60% webpagina increase ter traffic that day alone. Obviously the tweets mentioned and all that, it got them a good exposure that they did not expect. They didn’t think this would be a big overeenkomst to accept bitcoin. They got all the users come te their webpagina.
And then based off that ter the very first 180 days, thesis are the stats they got. So they had overheen Five,000 orders. But more importantly then, 42% were from fresh customers. So think about that. It costs the merchant nothing to set up, to accept bitcoin. It doesn’t – there’s no upfront fees. It cost them what, an engineer one or two days of work essentially to set it up. And for that amount of time, they just acquired 42% fresh customers, and thesis customers were spending 29% higher than credit cards. And of that, 69% came back and shopped again, or had spent overheen $1,000.
So after they begin working with us for six months, they came back to us and say how can wij get more bitcoin customers? This is superb actually. Wij want to get more bitcoin customers. Thesis are our beloved customers. And they actually talent a quote. They said, “Accepting bitcoin is similar to like accepting American Express. It kleintje of caters to a higher-end person, but without that credit toverfee associated with that and all the hassle involved with that too.”
So you’re eyeing, again from the merchant’s side of view, there is absolutely no risk. And so when a merchant, let’s say, when a consumer goes to one of thesis sites to buy, let’s say goes to Dell to buy a rekentuig equipment for, let’s say USD 300, and what happens is when they got to purchase it, it says do you want to purchase ter Visa, MasterCard or Bitcoin and they click on bitcoin. It says, okay, USD 300 equals let’s say one bitcoin, and they klapper send. BitPay takes that one bitcoin and then wij lodge with Dell USD 300 the next morning actually, similar to a credit card payment.
So all thesis merchants or most of thesis merchants don’t everzwijn take possession of bitcoin, don’t get involved with the bitcoin price fluctuation. Their accountants have no problem with it. It’s just a checkout option to them, similar to Visa or MasterCard. Wij also have some merchants that accepted payments te bitcoin and keep it, and that’s up to them. But a loterijlot of the global brands can’t get involve te currency fluctuations. It’s too hard te their registeraccountant books. So they just have us treat everything.
So again, processors like BitPay have made this very seamless and effortless for merchants to accept bitcoin with no risk at all. I mean, every time I call up a fresh merchant do you want to accept bitcoin, I hear the same thing. No, wij would never accept bitcoin. It’s – wij don’t know what it is. It would not work for us. I say, good, what if I told you never take possession of bitcoin. You will increase fresh customer revenue 1% to 2% and there’s no chargebacks. They say, oh, I didn’t realize that, and now they’re rente ter it. And that’s how you get the merchant adoption to go very prompt.
The other good thing that’s happening now te the last six months, I would say, is that payment processes have now commenced to adopt bitcoin. It’s fine that wij go out and sign up to Dell’s, Expedia’s, Overstock’s, Newegg’s, TigerDirect’s and Zynga’s directly but they all work with payment processors and they’d rather have that all installed to the payment processor. So now, you’re beginning to see payment processors integrate with companies like us to opoffering a bitcoin solution.
So a duo of key companies I want to talk about are ones that are truly growing rapidly like Adyen or Stripe or Braintree. So Adyen is the backend provider and they got a large office here ter Sao Paolo for Facebook, Groupon, Spotify, Dropbox, AirBnb. They just announced they do Uber’s payments globally.
And so this gives an option for all of those companies now accept bitcoin through Adyen without having to overeenkomst directly with BitPay. Braintree and Stripe, same kleuter of companies too, working very fine with e-commerce companies around the world, have suggested the same type of payment option too for their customers. And you’re commencing to see a lotsbestemming of thesis other ones te Latin America now beginning to take off. And that’s where adoption will grow much more exponentially than having directly talked with Virgins ourselves.
So that’s, zuigeling of, how the merchants are using it now and then wij’ve also commenced to see a big shift te the amount of people now injecting the bitcoin ecosystem. So one of the speakers talked about it earlier, the type of names that are, you know, attracted to this industry and I’ve never seen anything like this actually. So from BitPay, wij had Arthur Levitt, the former Chairman SEC, come join our houtvezelplaat of advisors. Arthur is very active. He attends all our houtvezelplaat meetings, help us out with rules and regulations and it’s just indeed amazing to see thesis type of people now coming in the space.
Lawrence Summers, former Treasury of the USA joined. Dee Hock wasgoed the actual founder of Visa. He joined ter a bitcoin company. So every finance – a loterijlot of financial executives that are the leading minds globally te finance are now teaming up with bitcoin playmates because they want to a part of this space. They see it truly is cutting edge. People might think Visa or Citibank might find this competitive, but they don’t know at all they’ve embraced this again. They want to work with this type of companies, this type of technology. Bill Bradley, a former Senator, and it’s just bot amazing. John Reed, a former CEO of Citibank, and thesis guys have all come to embrace this community, and it’s indeed something like I’ve not seen before actually.
So wij talked a loterijlot earlier this morning about blockchain and the theoretical use and all that type of stuff. Well, what wij’re eyeing now is banks are actually attempting to learn how to work with the blockchain. So I’m going to talk about some of the financial, you know, companies wij’ve seen what they’re up to, a lotsbestemming of them are still secret and stealth about what they’re doing, but they have announced publicly that they are working with the same type of stuff. BitPay is working with many banks but wij can’t talk – discuss what wij’re actually attempting to do with them.
Very first up is NASDAQ. So NASDAQ has bot a big voorstander of using the blockchain technology, and so they believe for their private marketplace – NASDAQ has a private marketplace ter the States, they will actually use a blockchain to, kleintje of, secure and register all the transactions of shares te the blockchain. The excellent thing about this use case however is that can go live ter Q4.
So most of thesis companies that are talking about the blockchain or talk about te pilot or kleuter of their labs and stuff like that. NASDAQ has said on the record that they will be live te Q4, which is a duo of months from now. So this would be hopefully the very first public use of a blockchain by the financial institutions to see how this works, to kleuter of audit and track share transfer and things like that.
Overstock.com, who has bot — you know, their CEO has bot a massive fan of bitcoin for many years, he’s actually launched a entire different crypto-bond thing he’s working on. He’s got his own exchange he’s doing. He’s got a loterijlot of different use case he’s working on, but more importantly however is, he sees that he would sell this with bitcoin and blockchain rather than T+Three instantly, and banks see this also. This can be phat ter settlement costs, ter settlement times where it takes three days to track the shares and all that type of stuff. This can all be done now instantaneously.
Other banks that wij see, and it’s across the houtvezelplaat now. Everyone now has launched a blockchain pilot or initiative. Wij’re observing it all across the world, not just ter America but te Europe, South America, global banks everywhere. BNP Paribas, they had an analyst write a entire report on the blockchain. You know, they’re attempting to add towards the currency funds. Again, thesis banks don’t actually specifically say what they’re going to use it for. They just say that, hey wij’re now working with this and investigating it.
Citi has gone fairly far. They’ve actually built three blockchains on their own and kicking off to play with that, spil well spil working with Citi Coins, they zuigeling of launched their internal coin system called Citi Coins. UBS has built a entire blockchain laboratorium ter London. So wij’re observing this fairly often now where people are, you know, announcing to the media, wij’re building a blockchain laboratorium and wij’re working with some – and they’re hiring scientists now. So a loterijlot of companies you see job descriptions now are looking to hire blockchain experts to help build this up for them.
Barclays just the last month, boom, another project they’re announcing pilot. Again, they don’t say what they’re doing with it so I can’t talk ter detail and wij’ve got NDAs with a loterijlot of thesis banks so wij can’t talk about it either. But they’re all attempting fresh things and again it would be interesting to see how long it takes before Barclays and UBS actually roll out ter production however. It’s one thing to have it te pilots te their labs and all that, but I’m nosey, you know, how long does it take for them to roll out ter production. You know, banks and IT traditionally don’t stir that very first, because they’re, you know, they want to make sure everything is done decently. So it would be interesting to see when they actually go live. That’s why NASDAQ going live ter Q4 of this year is going to be very titillating to see how that actually works out.
Central Banks you also see now are kicking off to get involved and also the consulting firms too, like IBM. So IBM now is creating a entire blockchain practice around this, just attempting to work with the banks themselves and wij’re kicking off to see indeed everyone indeed looking at this and let’s see where it comes out, you know. Right now, you know, wij work with them, but wij also work with them on a merchant payment acceptance side. And then wij also have a third use case that no one’s indeed touched upon too much, but wij work on payment distributions with bitcoin.
So wij accept bitcoin from merchants but then wij can also distribute bitcoin on behalf of merchants or things like that. So what that indeed means is, at BitPay wij work with our payroll vendor to permit the payroll vendor and several others to pay employees ter bitcoin. So at BitPay, wij have overheen 80 employees and every one of the employees takes part of their paycheck, some do all of their paycheck te bitcoin. So wij’ve suggested that system now. Wij’ve got other companies now, payroll providers suggest the same thing to other employees that they work with. So it’s an effortless way for people to get bitcoin. It gets deposited right into your bitcoin wallet. They don’t have go to a webstek and buy it. Every two weeks when your paycheck comes, a portion of that goes into bitcoin.
Other excellent use cases are, let’s suppose you have a multinational company that has contractors or consultants all overheen the world, te Asia and they’re paying out ter the U.S. says how do you pay them quickly and lightly. Wij work with thesis large companies. They talent us a list of their employees’ wallets, bitcoin wallets. Wij kasstuk send every Friday at Trio:00 p.m., let’s say, and they all get paid out instantaneously all overheen the world at no fees essentially. Right now, they have the Western Union checks back and forward and that gets very expensive obviously.
Other use cases can be developers and payouts. So you’ve got this big developer networks all overheen the world. You know, people are doing web freelance – freelancers ter web developing, things like that. How do you pay a web developer ter Bangladesh that doesn’t have a handelsbank account vanaf se? You can pay him ter bitcoin now. So it’s a good use case that happens very quickly and instantaneously.
The last slide I always like to talk about is our Compliance Team. Compliance is very significant te a bitcoin. But not bitcoin payments ter general, having bot involved with one payments company before that that wasgoed not bitcoin related, it’s the same compliance and the structure you need. And that’s truly where it’s hard for startups to get involve ter payments, it’s because they have to build out a entire compliance program around this actually.
Our Chief Compliance Officer wasgoed the former Anti-Money Laundering Head at Visa for five years. Before that, he worked at the Federal Reserve for 15 years. Wij have another person on our team from the Federal Reserve. Wij also have Arthur Levitt. Wij have a former – our European Compliance (inaudible 0:24:52) wasgoed a former PriceWaterhouseCoopers attorney actually. So everything wij do is all about compliance, rules and regulations.
So when wij inject fresh countries, wij work very closely with those regulators to make sure they understand how wij work because obviously, you know, bitcoin has that perception. And then once they meet with our team and understand how wij on houtvezelplaat fresh merchants, how wij go after KYC and AML policies, so for example, any fresh merchant or fucking partner wij signed up with has to go through a rigorous KYC and Anti-Money Laundering policy. Wij don’t do any high-risk protocols even tho’ a loterijlot of those protocols are legal actually. Wij still don’t like to high-risk protocols. So wij make sure that everything is formed through a compliance policies and work with the regulators to understand that.
Wij oftentimes get subpoenaed by the governments for, you know, slower merchant activity and wij conform with the government to make sure all the information is, you know, given to them te a unique style time actually. So everything wij do is very compliance-focused, rules and regulations for each country. Wij err on the side of caution. Being so high-profile ter the bitcoin industry, our company with all the investors wij have, wij have to make sure that every I is dotted, every T is crossed vanaf se.
With that, I’m glad to response any questions. Thank you very much.