Accept crypto using a PoS terminal
Over the last few years, cryptocurrencies have attracted the attention of people from all over the world, many businesses, and even governments of some countries. Just imagine, in 2021, El Salvador, a country in Central America, has adopted Bitcoin as a legal tender. Other states often opt to buy digital assets to invest and profit. And it is only the beginning!
Some forward-thinking companies have noticed the attention cryptocurrencies are getting and started accepting them as a payment method for their goods and services. This decision has brought them a lot of new customers and other benefits. Companies that accept Bitcoin, Ethereum, or any other cryptocurrency do it in many ways. For example, they do it with the help of service providers that offer online payment pages or crypto PoS terminals. Both options are quick and simple, but we will discuss crypto PoS terminals in this article.
What is a Point-of-Sale (PoS)?
Most people have already heard the term “Point-of-Sale”. This is basically the moment when customers pay for their purchases. When they are at the counter or check-out online, they are at the point of sale.
In physical stores, a PoS is a device that processes transactions. An example of such a device used to be the cash register. Now, when someone mentions a PoS, they usually refer to the terminal that processes credit/debit cards and cash.
Up until recently, PoS terminals were only able to accept bank cards. With the rise of cryptocurrencies, this situation has changed. Nowadays, more and more businesses start accepting cryptocurrencies as a payment method and installing crypto Point of Sale systems in their stores.
For someone who has never dealt with digital assets, implementing crypto payments may seem too difficult. However, this payment method offers lots of advantages and can be implemented as smoothly as possible if you choose a good service provider. Such providers usually do all the complicated work for you. They install the terminal, provide technical support, make sure everything functions properly, and show you how to work with it.
When choosing a provider, ensure that they have a good reputation and reviews, check out who they work with, ask what safety measures they use, and don’t hold back questions. This important decision will determine how satisfied your customers will be.
What crypto can you accept with PoS systems?
Most providers of crypto acquiring services allow businesses to choose one or a few cryptocurrencies from a long list of options they have. For example, Whitepay offers more than 140 digital assets, both more well-known and newer ones. Although the most famous crypto in the world is obviously Bitcoin, there are other options that may be even better for your business.
One of the best digital assets for cryptocurrency payments is Tether (USDT). This stablecoin is pegged to the US dollar, which means its ratio is almost 1:1 with USD. This means that when accepting payments in USDT, you don’t have to worry about its volatility. See, Bitcoin’s price can drop from $25 000 to $10 000 in the blink of an eye, while Tether’s price pretty much stays the same.
Here are the most popular digital assets used as crypto payments:
- Tether (USDT)
- Bitcoin (BTC)
- Ethereum (ETH)
- Cardano (ADA)
- Litecoin (LTC)
- Ethereum Classic (ETC)
- 1inch (1INCH)
- Sushi (SUSHI)
- Ripple (XRP)
- Polygon (Matic)
However, your choice should depend on your needs and your target audience. Sometimes even lesser-known cryptocurrencies can be a great choice for your customers.
Why should offline stores accept crypto?
Both online and offline businesses should look into the possibility of using crypto as a payment method. We will talk about all the benefits of this decision a little bit later, but the main advantage for any company is that there are a lot of potential customers who are ready to pay in crypto. When they come to your store, they should be able to pay however they want. And just imagine there are more than 420 million crypto users in the world already.
How popular PoS cryptocurrency payments are?
Obviously, crypto PoS terminals are not as popular as regular ones that accept bank cards only. However, it is not a bad thing. Your business can get a chance to be among the first adopters of crypto. What does it mean? This means that you will stand out from the crowd of your competitors. And since cryptocurrencies are getting more and more popular every day, you will be very attractive to those people who want to pay with digital assets only.
Grocery stores are among the slow adopters since most goods they sell are quite cheap, and even the slightest change in cryptocurrency rate can influence their price a lot. Plus, it can be a bit difficult to process a crypto transaction when there is a line of clients waiting for their turn because it may sometimes take a few more minutes. However, many stores that sell household appliances, furniture, and clothes are already on board with crypto payments.
What big companies accept cryptocurrency payments? You have probably already heard most names from this list.
Microsoft. Users can deposit crypto to their balance and pay with it for various services.
Starbucks. The chain of coffee shops offers its clients to use the Bakkt app to pay with digital assets.
Tesla. The company first announced that they will be accepting Bitcoin for their cars but then decided to wait a bit.
Visa/Mastercard. These two giants have decided to let customers buy and sell digital assets, and Mastercard even plans to pay rewards in crypto.
PayPal. Their users from the US can buy, sell, and hold cryptocurrencies via the app.
AirBaltic. This Latvian airline started accepting Bitcoin in 2014 and has already accepted more than 1000 transactions in digital assets.
Sotheby’s. The auction has recently embraced both cryptocurrencies and NFTs. Digital assets have already been used to pay for some rarities.
Lush. This handmade cosmetics company fully embraced Bitcoin payments in 2017.
These are obviously just a few examples of businesses that accept cryptocurrencies. The full list is very long already, so hurry up if you want to be among the first adopters.
How to use a crypto PoS system?
We have already mentioned Whitepay, a SaaS company that is a part of the WhiteBIT ecosystem. Whitepay offers both crypto PoS terminals and online payment pages to their clients from all over the world. As of now, they support more than 140 cryptocurrencies. Whitepay works not only with businesses but also with charities, which has helped many Ukrainian volunteers and organizations since people from other countries were able to send their donations.
Let’s take a look at the process of accepting cryptocurrency payments with Whitepay PoS terminals:
First of all, a salesperson selects the Crypto option on the crypto payment terminal when a client states that they want to pay with digital assets.
The client then chooses the cryptocurrency they would like to pay with (if there is more than one option) as well as its network standard.
The salesperson enters the amount to be paid in the fiat currency used by the business. It will be automatically converted by the PoS machine according to the current exchange rate. This amount of crypto will be frozen for 120 seconds.
The customer then proceeds to scan the QR code on the terminal with their phone, and the information needed to complete the transaction will be shown in the browser. Using this information, the customer can send the cryptocurrency from their crypto wallet.
After the customer enters the information in the crypto wallet and completes the transaction, the crypto PoS machine will print out the receipt. At the same time, the business receives the payment in crypto. It can then be converted into fiat money.
Of course, depending on the crypto acquiring company, this process may differ. But in general, all the steps are usually similar. As you can see, it may take a few extra seconds to complete the transaction (compared to bank card NFC payment), but this method still has a lot of advantages for businesses and their customers.
Benefits of using POS terminals for businesses and customers
In this article, we have already mentioned a few pros of cryptocurrency payments. If you have already put two and two together, you understand that this payment method wouldn’t be gaining popularity if it wasn’t for significant advantages for both parties. Firstly, let’s find out why crypto acquiring is beneficial for companies.
Implementing cryptocurrency payments opens up access to a broader client base of crypto users. Such people usually prefer paying directly with digital assets without spending time exchanging crypto for national currencies. As we stated before, there are more than 420 million crypto users worldwide, and only a handful of businesses already accept digital currencies. So if you want to attract a new audience to your company, consider crypto acquiring.
Crypto payments can be a great addition to your marketing campaign if used correctly. This way, you can show your customers that your company is innovative and cares about its clientele.
Cryptocurrency payments are safer for businesses. Mainly because all cryptocurrencies work on blockchains, and transactions in a blockchain Point of Sale system are irreversible. Businesses often come across dishonest clients who would pay for goods and services only to take home what they bought and reverse the transaction later (by opening a bank dispute). Well, it is something you wouldn’t have to worry about with crypto.
Since there are fewer intermediaries between business and client when it comes to cryptocurrency, the fees are also lower compared to bank transactions.
Cryptocurrency payments also take less time and are almost instant. You don’t have to wait for up to seven business days to receive your money.
And why are cryptocurrency payments beneficial for customers?
They have more places where they can pay directly with digital assets without converting them to fiat first.
Fees for crypto transactions are lower than traditional ones.
Crypto payments are quick.
They can purchase things from all over the world without the need to have a local bank card.
Cryptocurrency payments are very secure, which means they have fewer chances of encountering fraud.
Crypto PoS system
Cryptocurrency is already a trend and it is only getting more popular. This means that PoS systems that accept crypto, like the ones offered by Whitepay, are going to become even more advanced, fast, and reliable in the near future. And since the crypto client base continues to grow, there will be a lot more potential customers for businesses that offer cryptocurrency payments.
As you can see, cryptocurrency payments are great for both businesses and customers. They offer a lot of benefits, including cheaper and faster transactions than traditional payments. Businesses that implement crypto payments get a competitive advantage and, when done correctly, benefit from it. And with trustworthy crypto acquiring service providers like Whitepay, you can easily grow your business in no time. Put your company on the map by choosing an innovative approach!